Among Sean Parnell’s various bad decisions as Alaska’s Governor—made with the Republican-led legislature—was building ferries outside the competitive bidding system used normally to fund federal transportation projects. For ferries Tazlina and Hubbard, the state paid essentially 100% of the construction cost, instead of an affordable 10%. It turns out that Alaska never could afford such rogue fiscal policy.
While sailing the good ship AMHS away from the mooring of entrepreneurial, bid-based contracting, Parnell and his Republican allies gushed about good jobs at Ketchikan’s in-state shipyard. Alaska was nuts to build ferries Tazlina and Hubbard outside this system: feds pay 90%, states pay 10%, and the winning bidder is the qualified ship-builder who can do it for less. Tazlina and Hubbard each initially cost $120-million, plus $30 million for crew accommodations and doors that work: total $150 million each. Hypothetically, how many “Tazlinas” might we have built if each one only cost the state $15-million? You do the math. This unsound fiscal policy is shocking and, I pray, history.
Can Alaska rebuild its ferry fleet? I’m sure we will. But today, with ten of eleven ferries tied to the dock, it’s a challenge to imagine. When these very expensive vessels are next being considered for funding—damn it— we reap the 90/10 windfall and give all shipyards a fair shot: Gulf coast, Seattle, Portland, Ketchikan, etc. We’ll be money way ahead. No more sweetheart deals for Ketchikan.
Burl Sheldon
Among Sean Parnell’s various bad decisions as Alaska’s Governor—made with the Republican-led legislature—was building ferries outside the competitive bidding system used normally to fund federal transportation projects. For ferries Tazlina and Hubbard, the state paid essentially 100% of the construction cost, instead of an affordable 10%. It turns out that Alaska never could afford such rogue fiscal policy.
While sailing the good ship AMHS away from the mooring of entrepreneurial, bid-based contracting, Parnell and his Republican allies gushed about good jobs at Ketchikan’s in-state shipyard. Alaska was nuts to build ferries Tazlina and Hubbard outside this system: feds pay 90%, states pay 10%, and the winning bidder is the qualified ship-builder who can do it for less. Tazlina and Hubbard each initially cost $120-million, plus $30 million for crew accommodations and doors that work: total $150 million each. Hypothetically, how many “Tazlinas” might we have built if each one only cost the state $15-million? You do the math. This unsound fiscal policy is shocking and, I pray, history.
Can Alaska rebuild its ferry fleet? I’m sure we will. But today, with ten of eleven ferries tied to the dock, it’s a challenge to imagine. When these very expensive vessels are next being considered for funding—damn it— we reap the 90/10 windfall and give all shipyards a fair shot: Gulf coast, Seattle, Portland, Ketchikan, etc. We’ll be money way ahead. No more sweetheart deals for Ketchikan.
Burl Sheldon