Efforts to replace the state ferry Tustumena are moving forward with an expected delivery date of Jan. 31, 2029, says Rep. Louise Stutes, R- Kodiak.
“There seems to be a lot of interest from shipyards this time around on the project,” Stutes told participants in the Southwest Alaska Municipal Conference at their annual meeting in Anchorage on March 6. “I have a lot of confidence in Craig Tornga, American Marine Highway System’s executive director, and I think that project is moving in the right direction.”
The deadline on submission for requests for proposals in May 28.
There is currently a $77 million federal shortfall in the AMHS’s operating budget due to the timing of Infrastructure Investment and Jobs Act funding, she said. Federal officials have blamed the delay in the notice of funding opportunity to staffing shortages.
Alaska’s transportation officials were in Washington D.C. this past week to meet with the Federal Transit Administration (FTA) and the Rural Ferry Program coordinator about the federal awards and to try and move things along, according to Stutes. Meanwhile the Alaska congressional delegation has been pressing the FTA as well to get the funding out earlier.
The good news, said Stutes, is it looks like upcoming funding will cover a two-year period instead of one and Alaska will be applying for and could receive about $400 million for both operating and capital needs. The bad news, she said, is that the notice of funding opportunity will be issued in March with awards expected no earlier than August or September, which brings her back to that $79 million shortfall.
State transportation officials have several contingency plans, depending on when the federal award is received, to keep full service going until the funding arrives.
“We will certainly keep a close eye on this and hold DOT’s feet to the fire in the budget process,” Stutes said.
Part of the Infrastructure Investment and Jobs Act funds will be used to move forward with the mainliner replacement as well.
Over the next fiscal year, AMHS is moving to a multi-year appropriation model that will allow a lot more flexibility for carry forward or shortfalls, according to Stutes. This is supported by the AMHS board as well, and will help the system bridge funding challenges that overlap the fiscal year.
While she is pleased with current federal funding opportunities, Stutes said, her goal is to get the ferry system back on consistent year-to-year funding.
“Alaska needs more skin in the game,” she said.
