Gov. Bill Walker cited the state fiscal crisis last week for his decision to halt the Juneau Access Road Project, making good on his promise to settle the issue during his term.
An available $38 million – out of $48 million in the state general fund intended for the project – is now reauthorized to stay in the Lynn Canal for “other transportation and capital projects,” per the governor’s proposed fiscal year 2018 budget.
Of the $38 million, $4 million is earmarked for the Day Boat Alaska Class Ferry Project, said Jeremy Woodrow, spokesperson for the Alaska Department of Transportation. It will go toward outfitting the two new ferries with life boats and other equipment when complete in 2018.
DOT is waiting for direction on how to use the remaining funds, Woodrow said, but the governor’s budget must still go through the legislative process for approval.
Walker said in a press release: “I am a builder by background and understand the importance of construction projects, but I am very concerned with our current multi-billion dollar fiscal crisis and must prioritize the need for fiscal resolution.”
Furthermore, the state press release said, “Governor Walker committed to working with Juneau and the surrounding regional communities to determine the best use of those dollars. Federal construction dollars have not been appropriated for the project. The state is working closely with federal highway officials and does not anticipate having to repay any federal funds spent to date on the project. The studies and work done to date will be available for future use.”
Until last week, Walker was publicly undecided on the project. He visited Haines and other Southeast communities in the fall to hear feedback to help make the decision.
“I’m here because I have not made up my mind as far as the Juneau Access issue. It’s one that will impact this area. There’s no question about that. I don’t shy away,” Walker said during his October visit.
Dozens of Haines residents shared their opinions with Walker in a question-and-answer session, the majority of whom were opposed to the road.
“I think it’s a very wise decision in lieu of our economic situation,” said Dan Egolf in a recent interview. Egolf is a Haines business owner and advocate against the road. “There’s been a real disconnect between what people want, what they need and what DOT has been doing,” he said.
Egolf is a proponent for finding energy efficient alternatives to improve the ferry system. “That’s my hope that (DOT) will stop wringing their hands over low oil prices and start looking at some alternatives,” he said. “Hopefully we’ll get back on the right track.”
Emily Ferry, deputy director of the Southeast Alaska Conservation Council and outspoken opponent of the road, said the issue was very emotional on both sides, but, “I think taking a cool-headed and passionate look at it was the right choice for the state at the right time,” she said. “The governor made a very smart choice, particularly given the budget deficit.”
Ferry said allowing the $38 million to go to other projects will benefit all of Southeast Alaska.
On the other hand, road advocates are disappointed – but not surprised – by the governor’s actions.
“My support for the road was from a belief that I still hold quite strongly, that the amount of fuel burned by the ferries has a huge negative impact that is unsustainable for the future of our planet,” said Haines resident John Norton. “But I guess as in many things that we find in our public decisions, you don’t always get what you want.”
Haines resident Jerry Lapp wanted a road on the west side of the Lynn Canal. Although money will be rerouted to other transportation projects in Southeast, improvements to the ferry service take a long time, he said. And the state can be unpredictable.
“You just never know what the state is going to do,” Lapp said.
He doesn’t think he’ll see a road in his lifetime, he said, but the idea is not going away.
If Walker would have selected one of seven alternatives that could have resulted in a Juneau Road build, the 50-mile road extension would have most likely terminated at a new ferry terminal on the Katzehin River, about 90 miles north of Juneau.
It was expected to cost $574 million and would have cost the state about $5 million more each year to maintain than the cost to maintain the ferry system service, according to the State’s own documents.