1998-01-16                     Senate Journal                      Page 2221
SB 247                                                                       
SENATE BILL NO. 247 BY THE SENATE 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.                                                            
                                                                               
Governors transmittal letter received January 15:                              
                                                                               
Dear President Miller:                                                         
                                                                               
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              
                                                                               
                                                                               

1998-01-16                     Senate Journal                      Page 2222
SB 247                                                                       
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                  
consideration of this bill so we can help Alaskans and visitors plan           
their journeys.                                                                
                                                                               
					Sincerely,                                                                
					/s/                                                                       
					Tony Knowles                                                              
					Governor