An Act relating to the Alaska marine highway system vessel, M/V Malaspina; and providing for an effective date.

Prepared by: Senate Finance
Updated: April 27, 1999

Senate Bill 129 creates a sub-account in the Alaska marine highway system to separately track revenues and expenditures related to the day boat operation of the M/V Malaspina.

SB 129 limits expenditures for the operation, maintenance and capital improvements of the Malaspina to the gross revenues generated by the vessel and to other funds that the legislature may appropriate to the account.

The Department of Transportation plans to operate the Malaspina as a day boat in the Northern Lynn Canal only during the summer months. This is the second year that the vessel will be used for day boat passenger and vehicle service between Juneau, Haines and Skagway. During the 1998 session, the Legislature allowed the Department an initial subsidy and directed the Department to then limit the cost of operating the vessel within the program receipts generated from the service by seeking union concessions and targeting high volume seasonal runs.

One basic premise of the recently released Southeast Alaska Transportation Plan is the development of sub-area or regional transportation services and facilities. Substantial savings in operations and maintenance costs are expected to be realized as more high speed "day boats" are put into operate in the region's four zones over the next five years.

By limiting the State's first day boat operation to the actual revenues generated, we are sending a strong message that the Legislature does not intend to subsidize the operation of day boats. The economic viability of the day boat concept is proven by its self-sufficiency.

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