1998-01-16                     House Journal                      Page 2066
HB 328                                                                       
HOUSE BILL NO. 328 by the House Rules Committee by request of                  
the Governor, entitled:                                                        
                                                                               
"An Act making appropriations for continued maintenance and                   
operation of the Motor Vessel Malaspina; and providing for an                  
effective date."                                                               
                                                                               
was read the first time and referred to the Transportation and Finance         
Committees.                                                                    
                                                                               

1998-01-16                     House Journal                      Page 2067
HB 328                                                                       
The Governor's transmittal letter dated January 16, 1998, appears              
below:                                                                         
                                                                               
"Dear Speaker Phillips:                                                        
                                                                               
The public has indicated strong support for keeping the Motor Vessel           
Malaspina working for Alaska and its visitors.  I am, therefore,               
transmitting this bill to provide financing for the continued operation        
of the Malaspina.                                                              
                                                                               
With the anticipated arrival of the Motor Vessel Kennicott this                
summer, the state has a golden opportunity to alleviate the chronic            
congestion in North Lynn Canal.  By operating the Malaspina as a day           
boat between Juneau, Haines, and Skagway, we will be able to                   
transport residents and travelers to road routes leading to Alaska's           
interior.  The daily service provided by the Malaspina in North Lynn           
Canal will result in 14 additional weeks of ferry service for Southeast        
travelers on a leg that is currently lacking in transportation assets.  It     
also makes practical sense to keep the Malaspina in operation so it will       
be available as a backup vessel during service disruptions.  This will         
be especially important as we incorporate the Kennicott into the               
system.                                                                        
                                                                               
According to the April 1995 McDowell Group report titled "Economic             
Benefits of the Alaska Marine Highway System," visitors arriving via           
the marine highway annually spend $11.4 million in Southcentral                
Alaska, $7.4 million in Interior and Northern Alaska, and $13.3 million        
in Southeast Alaska.  Maintaining the Malaspina in addition to the             
Kennicott provides a potential for increasing these economic benefits          
statewide.                                                                     
                                                                               
The Alaska Municipal League recently urged the state to "fully support         
the Alaska Marine Highway System through administrative policies               
and a funding level that allows the operation of a nine vessel fleet           
beginning in June 1998."  This bill allows us to meet that challenge.          
                                                                               
The Malaspina can continue to provide excellent service to Alaska's            
residents, businesses, and visitors.  If this appropriation is in place by     
February 15, the state will be able to confirm reservations on the             
Malaspina  for  summer  travel.   I  urge  your  favorable  and  swift         

1998-01-16                     House Journal                      Page 2068
HB 328                                                                       
consideration of this bill so we can help Alaskans and visitors plan           
their journeys.                                                                
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor"