A drilling rig operator works at the Iskut project in west-central British Columbia. The Iskut is one of about a dozen exploration or mining projects near rivers that run through or near Southeast Alaska. (Photo courtesy Seabridge Gold)

The Golden Triangle describes a mineral-rich region of northwest British Columbia. Its mines and exploration projects are in the watersheds of salmon-rich rivers that enter the ocean in or near southern Southeast Alaska.

Exploration companies say they’re finding more and higher-grade ore that could lead to new gold mines. But more drilling doesn’t necessarily mean more development.

“In the northwest corner of British Columbia lies a geologic formation known as the Stikine Terrain, which holds some of the richest gold ore bodies in the world,” begins a YouTube video by iResource Media, which covers the mining industry. “This area is so rich, in fact, that they call it the Golden Triangle.”

It and similar reports describe two active mines and close to a dozen exploration projects in the area. They’re upstream from the Stikine or Unuk Rivers, which flow through southern Southeast Alaska. Or they’re in the headwaters of the Naas River, which empties into the ocean just south of the Alaska border.

One of the newer drill projects is the Iskut, owned by Seabridge Gold. Spokesman Brent Murphy said the company is in its second year of exploration.

“We had some success last year where we found some evidence of gold mineralization, and now we want to go out and see if we can find the origin and source of that gold so that we can develop a potential resource,” he said.

The project includes the closed Johnny Mountain Mine. Seabridge has removed and cleaned up abandoned fuel tanks and other contamination that project left behind.

Murphy said it looks promising. But that doesn’t mean it will become a mine.

“It’s way too early to even speculate. We are just in the very early stages of exploration,” he said.

Seabridge also owns the Kerr Sulphurets Mitchell project, which it’s been pursuing since the early 2000s. In recent years it’s been granted key permits needed for construction. The company is actively seeking investors.

KSM, as it’s known, is the largest project in B.C.’s Golden Triangle. Murphy said the company has located new deposits of valuable minerals.

“What we’ve found over the last three to four years is we’re definitely hitting higher copper grades and gold grades,” he said.

About a dozen mines or exploration projects are in what’s called the Golden Triangle in west-central British Columbia. Some are new, while others are old mines under exploration as the price of gold rises. (Map courtesy Aben Resources and its Forrest Kerr project)

Iskut and KSM are but two of the exploration projects claiming to have found valuable metals in the Golden Triangle. Calls to other companies were not returned. But all are clearly taking advantage of regional upgrades and the lucrative trend in the industry.

A key factor is the rising price of gold, which has been hovering around $1,300 per ounce. That’s more than twice the value of a dozen years ago.

Another factor is infrastructure. New pavement, hydroprojects and power lines have been developed with support from the British Columbia government. And a deep-water port has been developed at Stewart, the anchorage nearest to the Golden Triangle mines.

“There’s a lot of exploration work taking place and that kind of waxes and wanes,” said Kyle Moselle, large mine project manager for Alaska’s Department of Natural Resources.

He and a state biologist toured some of the Golden Triangle sites last fall and saw evidence of increased activity. The improved business climate is leading to more drilling, but that’s it.

“Does that mean that there’s a flood of mine projects coming? I don’t think so. I’ve never seen exploration work be an indication of actual mines being developed or proposed,” he said.

The number of projects makes it difficult for environmental, fisheries, tribal and government mine critics.

They say pollution from digging and milling could end up in transboundary rivers, threatening salmon and other fisheries.

“It’s hard to really prioritize which are the most important ones, which are the ones that might go ahead and which are the ones that could have effects down here in Alaska,” said Chris Zimmer, Alaska campaign director for Rivers Without Borders.

He’s tracked transboundary mines and exploration projects for years.

He’s encouraged by political changes in the federal and provincial governments. They continue to support development, but appear to be putting more emphasis on environmental protections. But he said those are long overdue.

“As I look at that, all that does is put us back to where we basically should have been 10 years ago. Fix the flaws in the B.C. assessment process over there. It’s definitely not a magic bullet and not the best way to address our concerns downstream,” he said.

Climate change is also making it easier to explore for gold and other rare minerals.

Warming global temperatures are melting back ice fields and glaciers in the Golden Triangle, allowing easier access to once hidden ore.

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The Taku Kwan Dancers from Atlin, British Columbia, perform at Celebration on June 10, 2016. They’re returning this year. (Photo by Ed Schoenfeld/CoastAlaska News)

Dance groups, artists, canoe paddlers and traditional food experts are gearing up for Celebration 2018. It’s Southeast Alaska’s largest Native cultural gathering, held June 6-9 at Centennial Hall and nearby sites in Alaska’s capital city. It’s been happening every other year since 1982.

It can be hard to fully describe Celebration. You can talk about its expected 2,000 or so dancers and 5,000 participants. Or the language, the oral traditions and the regalia. But that just doesn’t fully capture the experience.

Rosita Worl, president of the Sealaska Heritage Institute, describes one year’s grand exit, when all the groups danced out of the performance hall.

“And it was like we were one people, one being, and we were all dancing. And it reminded me of a swarm of fish coming in. But everybody was kind of in unison, it was like we were part of a whole spiritual essence,” she said.

Celebration 2018 lists 45 dance groups from Southeast and other parts of Alaska, the Yukon, British Columbia, the Pacific Northwest and California.

Every Celebration has a lead dance group representing a clan. But this year it has two: The Shangukeidí, or the Thunderbirds, and the Lukaax.ádi, or the Sockeye.

They’re from Haines and Klukwan, or the Chilkat and Chilkoot areas. Worl said they will dance together, with clan songs from each.

The entrance song, owned by the Shangukeidí Clan, is “The Thunderbird Trade Song.” The grand exit will feature “The G̱unanaa Trade Song, one the Lukaax̱.ádi Clan bartered for with inland Athabaskan tribes.

Not all dance groups are made up of members of the same clan. Others are community, school or multi-tribal-based.

Celebration Coordinator Carmaleeda Estrada said she’s enjoyed the growth of the youth groups. She said two younger cousins from Angoon formed their own dance troupe and will be part of their second Celebration this year.

“We would never have thought to start our own dance group. So to be able to see people even younger than me taking that initiative, we have young girls in our group who are still in elementary school and they’re writing songs, they’re writing Tlingit songs. And so, just to see that from my own community is really inspirational. It really raises the bar,” she said.

Canoes from around Southeast Alaska are formally greeted at the Douglas Boat Harbor on June 8, 2016, just before that year’s Celebration. This year’s canoes are scheduled to arrive June 5 between 2 and 3:30 p.m. They’re organized by the One People Canoe Society. (Photo by Ed Schoenfeld/CoastAlaska News)

Regalia, from clan hats to vests to button blankets, is worn by most dancers. But Worl said that’s changing.

“Before we would only allow traditional regalia. But we kept saying, if our culture’s going to evolve, then we have to let it and support that. So now you’re seeing a lot more Native fashion wear,” she said.

This year’s Celebration will continue the relatively new tradition of a runway-style fashion show. For the first time, the models will have a formal model training session.

Another new event is a seal oil contest, to be judged by taste and other factors.

Estrada said such contests will be more visible than in previous years.

“We would do that off to the side in the elders’ room and it wasn’t as prominent as it’s going to be this year. So not only are we adding the seal oil competition to that, so now there’s three food categories, but we’re also moving that to the main stage,” she said.

Celebration also includes a juried art show, a youth art show, a regalia care workshop, a Native artists market and the ever-popular toddler
regalia revue.

But the action isn’t all on stage. Estrada thinks back to Celebrations she attending as a child.

“You remember running around with your cousins and you don’t really realize how important and how lucky you are and what a profound event you’re at. But those things are just as fun, being able to reconnect with family and friends from all over,” she said.

Each Celebration has a theme. For 2018, it’s “Respect: Weigh Your Words.”

Editor’s note: Sealaska Heritage Institute contracts with CoastAlaska station KTOO to film and broadcast the event.

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Propellers shine as the Matanuska awaits repairs in 2014. It will get new engines and drive systems this year. That’s one change in the fully funded schedule for the next budget year. (Photo by Heather Bryant/KTOO)

The Alaska Marine Highway System got what it asked for in the Legislature’s operating budget.

Lawmakers OK’d the system’s request in their spending plan for the next fiscal year, which begins July 1.

General Manager Capt. John Falvey said despite a small decrease in funding, the total time in service for ships will actually increase by eight weeks.

“That gives us about 345.9 weeks, a little bit more, technically, than last year because of different ship configurations. Some ships are more expensive or not than others to run. So, it gives us a nice mix for the upcoming year,” he said.

The full ferry operating budget for next year is about $140 million.

The marine highway faced a shutdown in April due to a lack of money. A little-known budget provision – some called it a dirty trick – diverted ferry funding to cover Medicaid program shortfalls.

But Gov. Bill Walker replaced that money in a supplemental budget request, which the Legislature approved.

Next year’s sailings are similar to this year’s.

The ferry Matanuska tied up this month for a full engine-and-drive-system replacement. The work will continue through half or more of the next budget year.

Falvey said its Prince Rupert sailings are being covered by the similar ferry Malaspina.

“Everything else pretty much remains the same. The Kennicott and the Columbia, they’ll also be running. So I’ll say it’s pretty much the same except the Matanuska is out of the picture,” he said.

The Legislature’s capital budget for next year also includes money for ferry overhauls, certifications and terminal and dock work. That’s mostly paid for with federal funds.

The capital budget also provides $250,000 in operational funding for the Inter-Island Ferry Authority. That’s a separate, nonprofit system linking Prince of Wales Island with Ketchikan.

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The ferry Malaspina sails out of Juneau’s Auke Bay terminal in 2012. It’s one of 10 active vessels in the Alaska Marine Highway fleet. The system’s new executive director, Shirley Marquardt, will begin work June 1. (Photo by Ed Schoenfeld/CoastAlaska News)

The Alaska Marine Highway has a new top official.

State Transportation Commissioner Marc Luiken on Tuesday appointed Shirley Marquardt as executive director of the ferry system.

Marquardt served as mayor of Unalaska, the ferry system’s westernmost port. She represented her region on the state’s Marine Transportation Advisory Board for more than a decade. She’s also worked for seafood processors and a barge line.

Shirley Marquardt was named executive director of the Alaska Marine Highway System May 15. (Photo courtesy State of Alaska)

Marquardt will oversee an initiative to change the system from a state agency to a public corporation. She said that’s part of what attracted her to the job.

“It’s such a different way to look at operating the ferry system, but clearly what we’ve been doing in the past almost 20 years is not working real well,” she said.

The executive director’s job is new. It replaces the deputy commissioner of marine transportation, which has been open for about a year.

Marine Transportation Advisory Board Chairman Robert Venables said Marquardt will bring business experience to the system, as well as what’s called the Ferry Reform Project.

“She really understands the maritime industry and she understands the community importance of the marine transportation mission of the Alaska Marine Highway System. And so, she’s very well rounded and I think she’s going to bring a great depth of expertise and executive decision making,” he said.

Venables said transportation officials discussed the new hire with the advisory board Monday. He said support was unanimous.

Marquardt will begin her job in early June. She’ll move to Ketchikan from Anchorage, where she’s been the governor’s director of boards and commissions.

General Manager Capt. John Falvey will continue to oversee marine highway operations, as he has for more than a decade.

“He will continue to be the ferry whisperer. That’s his bailiwick. That’s his wheelhouse,” she said.

The marine highway system has reduced service and dropped vessels in recent years as budgets have become tighter.

Its 10 ferries serve 35 communities from Bellingham, Washington, to Unalaska-Dutch Harbor.

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A Sealaska corporate logo adorns the roof of the Southeast Alaska regional Native corportation’s headquarters in Juneau on May 2, 2018. The logo has representations of the Eagle and Raven moieties of the Tlingit, Haida and Tsimshian cultures. (Photo by Jeremy Hsieh/KTOO)

Only three independent candidates are running for the Sealaska Board of Directors this spring. That’s a smaller number than most recent years. Why?

Sealaska is holding community meetings this month in nine Southeast Alaska and Washington state cities.

They’re an opportunity for some of its more than 22,000 shareholders to hear about the regional Native corporation’s business progress. The meetings are also a chance to hear from incumbents and challengers running for Sealaska’s board of directors.

Five of the board’s 13 incumbents are on this year’s ballot. They’re endorsed by the board and run as a slate. Shareholders can cast ballots for them as a group through a process called discretionary voting.

Only three independent candidates are challenging the incumbents. That’s a third to a half of the number in some elections this decade. Shareholders cast ballots for each individual candidate through what’s called directed voting.

Ray Austin of Albuquerque, New Mexico, has run as an independent in several elections. But not this time around.

“What’s been happening in the past years is too many people run, sometimes almost 10. And what happens then is that they dilute the voting power of the shareholders that vote directed,” he said.

Two of the three independent candidates have run before. They are Nicole Hallingstad of Arlington, Virginia, Sealaska’s former corporate secretary; Karen Taug of Juneau, Bartlett Regional Hospital Controller; and Edwell John Jr. of Juneau, a state business analyst.

The incumbents include board president Joe Nelson of Juneau and his predecessor, Albert Kookesh of Angoon. Also running are former lawmaker Bill Thomas of Haines, fisheries business owner Barbara Cadiente-Nelson of Juneau and attorney Tate London of Bothell, Washington.

Nelson, in a prepared statement, said the thin independent slate could be the result of several factors.

One is that two strong independents won board elections over the past three years. Another is that several other incumbents first ran as independents.

Sealaska CEO Anthony Mallott said it also could be due to the corporation’s business success. A recently released annual report showed last year’s earnings triple the amount of the previous year.

“The excitement we have around the financial performance, I would guess, should drive a lot of decision-making for our shareholders in this process. We want to be very clear and transparent that 2017 is a milestone year and there’s more to come,” he said.

In past years, some critics have suggested a coordinated campaign to limit the number of independents.

That happened in 2014, when a group called 4 Shareholders for Sealaska ran its own slate. It succeeded in putting one person on the board.

Candidate Hallingstad said social media postings show there’s still interest in coordination.

“I’ve seen a lot of conversation about shareholders wanting to unite behind one or two qualified candidates to get an independent elected,” she said.

But she, Austin and another former candidate say there’s no coordinated effort this year.

Austin said that’s in part because campaigns begin before the official list of candidates is made public.

“I think that’s always been a disadvantage for any shareholder because you cannot plan a strategy if you don’t know who’s running as an independent,” he said.

Shareholders have been voting online and by mail since early this month.

Election results will be announced at Sealaska’s annual meeting June 23 at the Wrangell High School Gymnasium.

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Sealaska Board Chairman Joe Nelson poses at corporate headquarters in Juneau after he was elected to the position in June 2014. Nelson announced a new shareholder burial assistance program on Monday. (Photo by Ed Schoenfeld/CoastAlaska News)

Sealaska is helping its shareholders with burial and cremation costs. The Southeast regional Native corporation’s board voted Monday to offer bereavement benefits of up to $1,000.

Losing a loved one is difficult enough on its own. Add the cost of a funeral, burial or cremation and it can be too much to handle.

A thousand dollars isn’t enough to cover all expenses, which can easily top $10,000. But it can help.

Sealaska Board of Directors Chairman Joe Nelson said the corporation’s increased earnings allow it to offer the benefit.

“This is one that’s been out there for a long time and we haven’t been able to get there. But this year, because of our financial performance and our anticipated continued solid performance, that I think everybody in the company’s just excited that we’re able to move on this one this year,” he said.

Survivors will receive $1,000 when an original shareholder dies. That covers those enrolled in the corporation since it formed in the early 1970s.

Descendants of original shareholders, and those who inherited or were given stock, will receive up to that amount. The corporation said payments will be based on the number of voting shares at the time of the shareholder’s death.

Nelson said the board took action now because it has a new source of revenue.

“It’s a function of being in a healthy financial position and then having the specific carbon project where we want to associate that carbon program to a benefit that all shareholders will feel for generations to come,” he said.

That project allows Sealaska to sell carbon offset credits through a program based in California. It’s complicated, but basically, the corporation keeps some of its forests intact, in exchange for payments from polluters.

Shareholder bereavement benefits began May 7, the day Sealaska’s board of directors approved the new program.

“I think this is fantastic news for shareholders,” said Nicole Hallingstad, a former Sealaska corporate secretary who’s running for the board as an independent candidate.

She’s among other candidates and corporate critics who’ve called for bereavement benefits.

“The most important thing about this announcement is that it just proves that when shareholders are united and are persistent in their voice in raising an issue, that we can actually accomplish the change that we’re asking for,” she said.

Nelson said a recent survey showed the benefit among shareholders’ top priorities. It was outranked by scholarships and dividends.

“Whenever we go out in the communities, just in our regular shareholder engagement, it is a regular theme — that a lot of folks could use help with burial assistance. And it’s also part of our cultural values, especially in Southeast, where we come together and support each other during times when someone passes,” he said.

Some other regional Native corporations already provide a similar benefit.

Nelson said the mechanics of payments are being worked out, but applications will be available sometime in June.

Sealaska estimates around 300 shareholders die every year. The corporation has between 22,000 and 23,000 shareholders.

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Cardboard and plastics pile up at the Juneau Recycling Center on April 28. Some recyclables are no longer accepted by China, one of the world’s largest buyers. (Photo by Ed Schoenfeld/CoastAlaska News)

Almost a year ago, recycling businesses in China announced plans to stop buying mixed paper and some types of plastic containers. That worried Alaska and West Coast businesses that collect, sort and ship those materials overseas.

At least one major wholesaler said it would remove the paper and plastics from its recycling stream and dump it in its landfill. But so far, that’s not happening much.

China began restricting its recycling intake Jan. 1.

Waste Management Communications Manager Jackie Lange said it was a big deal.

“In the broader region and across the country and in fact, around the world, there are a lot of changes that are being driven by what China is doing,” she said.

Waste Management operates about 150 recycling centers around the nation, including Juneau’s. It’s the biggest garbage company in the U.S.

Republic Services is another large recycler and trash collector. It takes reusable materials from Ketchikan, Sitka and Petersburg, along with more than 60 other U.S. cities.

Washington state General Manager Don Tibbets said his company continues to collect and sort the same things it did before Jan. 1. But not all newspapers, magazines, junk mail and other mixed paper is being shipped.

“We’re having to stockpile and store this material until we can find markets that are able to accept all of it,” he said.

Tibbets said Republic found new markets in India, Malaysia and Vietnam. But those nations don’t have as much capacity as China.

“Unfortunately, paper degrades rather fast and rather quickly in the natural environment. So after some time of being stored, it degrades to the point where it’s just no longer marketable,” he said.

Tibbets said about three-quarters of Republic’s mixed paper is being recycled and the rest is being thrown away.

Republic Services’ Don Tibbets looks over piles of garbage at the Roosevelt Regional Landfill in Washington state on Sept. 7, 2017. Tibbets served as general manager of the landfill, which takes in about 22,000 tons of Southeast Alaska garbage each year. (Photo by Tom Banse/Northwest News Network)

Tibbets said plastics are less of a problem.

“They’re actually a small portion of the recycle stream. So that amount of material, we’re still able to move overseas,” he said.

China still accepts most plastic bottles and containers marked Nos. 1 and 2, but not Nos. 3-7. But few local recycling centers accept that material.

Learn about other garbage issues and solutions in Southeast Alaska through CoastAlaska’s Talking Trash series.

The new restrictions have sent worldwide recycling wholesalers searching for new markets. In some cases, that’s driven prices down.

It’s of concern, especially in the 49th state.

“In Southeast Alaska, recycling is a very financially based enterprise,” said Petersburg Utility Director Karl Hagerman.

He’s also been active in the Southeast Alaska Regional Solid Waste Authority, a regional organization of cities that barge recycling and garbage south.

He said selling recyclables lower the expense.

“If the cost to recycle exceeds the cost to ship as solid waste, then it doesn’t really pencil out financially and we may have to look at doing something differently,” he said.

Juneau residents drop off cardboard, paper, aluminum and plastics at the city’s recycling center on April 28. It’s operated by Waste Management. (Photo by Ed Schoenfeld/CoastAlaska News)

While the worldwide market has changed, many collection sites have not.

Tibbets of Republic Services said it’s a bad idea to alter recycling habits.

“We don’t advise that because the consumer curve or learning curve can be very steep. So, we don’t want to change any practices. We don’t know if this is going to be a long-term or a short-term market correction,” he said.

Recycling companies and buyers do want to see one change. That’s less food, liquids and non-recyclables mixed into the stream.

Waste Management calls it “WishCycling.” That’s when customers put what they think should be recycled in bins and at collection sites.

The company said the problem means an estimated one-quarter of what its customers recycle has to be thrown out.

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The ferry Malaspina sails out of Juneau’s Auke Bay terminal in 2012. It’s one ship in a shrinking, aging marine highway fleet. A new bill would turn over management to a public corporation. (Ed Schoenfeld/CoastAlaska News)

Legislation changing the way the Alaska Marine Highway System is run was introduced Friday.

House Bill 412 calls for ferry management and operations to be transferred to a publicly owned corporation. Ships and terminals would remain state property.

Southeast Conference Executive Director Robert Venables worked with legislative staff writing the bill. He said it would take control of the ferry system away from politicians and political appointees.

“It provides an executive board that has deep maritime and business expertise into a model of governance that brings labor and management together working towards common causes and common goals of delivering the best predictable service to the state and the traveling public,” he said.

Southeast Conference pushed for development of the marine highway in the 1950s. It’s continued its strong involvement in the system since then.

The state-funded ferry system has reduced its fleet and sailings over several years due to budget cuts. The age of the fleet also means frequent interruptions in the schedule.

The state Department of Transportation and the Southeast Conference agreed to begin working on the idea about two years ago.

The legislation is based on studies done for what’s called the Alaska Marine Highway Reform Project. Its research includes a review of other ferry systems. It also gathered information from community leaders, passengers and businesses that use the ferries.

“We’ve been talking a lot of concepts lately and this is an opportunity now to have and to hold the actual statutory language that would create the public corporation,” Venables said.

The bill has been assigned to the House Transportation Committee. Co-chairwoman Louise Stutes’ office led the effort to write the measure. She was not immediately available for comment.

No action is expected this year, so the bill will have to be reintroduced for the next legislative session. But backers expect field hearings before then.

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Rob Alley plays the bagpipes as a send-off for the ferry Taku as it departs Ketchikan’s Ward Cove on March 13, 2018. Alley first arrived in Alaska aboard the Taku in 1992. Now, the ship is headed to the scrapyard. (Photo by Leila Kheiry/KRBD)

The former state ferry Taku sailed past Singapore on Friday on the way to being scrapped. It will go for close to 10 times its purchase price.

Jabal Al Lawz Trading bought the 55-year-old ship earlier this year.

The Taku left Ketchikan’s Ward Cove, where it had been stored, March 13. The company sailed it across the Pacific Ocean in hopes of finding a buyer to keep it in service. But negotiations with interests in Singapore and Fiji didn’t work out.

Co-owner Ben Evans of New Zealand said it will end its sailing days in India later this month.

“She’s going to go to the scrapyard and sold for demolition. So that’s the end of the Taku,” he said, calling it a tragedy.

A Petersburg fishing boat passes the ferry Taku near the entrance of Wrangell Narrows in August, 2013. (Photo by Ed Schoenfeld/CoastAlaska News)

The state sold the ship in January for $170,000.

Evans said his company will probably get about $1.5 million for the ship. But sailing it 12,000 miles across the Pacific was expensive.

“It costs us $55,000 to insure it for the voyage. My crew payroll’s running about $2,000 a day. The fuel bill was probably just under $400,000. There’s some big figures there, you know,” he said.

State officials put the Taku up for sale a little more than a year ago. The original minimum bid was $1.5 million. But it took several tries to sell it, each with a lower price.

The Taku has not been a working ferry for several years. It was tied up in 2015 because of its age, as well as budget cuts.

Robert Venables heads up the state’s Maine Transportation Advisory Board. He also works for the Southeast Conference, which pushed the state to start the ferry system more about 60 years ago.

He said the ship’s condition left few choices.

“It’s not surprising, but it does leave you with a little bit of sadness that she’s not going to be in service,” he said.

Evans said most of the Taku will be recycled. Some parts, such as generators, will be sold whole.

The cut-up hull will be reprocessed into rebar. Among other things, it’s used to strengthen concrete in building construction.

Co-owner Evans said an investor in Fiji wanted to use the Taku as a ferry. He said interests in Singapore were interested in retrofitting it into what’s called a superyacht.

But all backed out.

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Juneau Democratic Sen. Dennis Egan addresses the Alaska Senate in 2014. He plans to introduce an amendment restoring reductions to the chamber’s ferry system budget. (Photo by Skip Gray/Gavel Alaska)

The state Senate’s spending plan cuts funding from the Alaska Marine Highway System – but not a lot.

Its version of the operating budget shrinks the ferry system’s fuel budget by $370,000, about 2 percent of the total sought.

It also takes $2 million for operational costs out of what’s called the Marine Highway Fund, which holds ticket and other revenues until they’re needed. The House budget put $13 million into the fund and the Senate committee reduced it to $11 million.

Juneau Democratic Sen. Dennis Egan is one of three members of the Senate Finance Transportation Subcommittee. He objected to the change.

“It’s not sustainable. We shouldn’t be spending more out of that fund than we expect to get in ferry revenue,” he said. “The way to spend more from the ferry fund is to get more people riding the ships.”

The ferry system came close to shutting down this month because money had been removed from the Marine Highway Fund. That was replaced in a supplemental appropriations bill passed in March.

The Senate is still working on its full operating budget bill for the fiscal year beginning in July. During an April 3 meeting, Egan said he would try to restore cuts to the Marine Highway Fund through an amendment.

“The Alaska Marine Highway System is our road. It just happens to be on water. It needs a stable budget like the rest of the department. Roads, airports and ferries,” he said.

The Senate has proposed deep cuts to the marine highway budget in previous years.

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