The Alaska state flag on the bow of the MV Matanuska at the Auke Bay Ferry Terminal on Thursday, Feb. 6, 2020. (Peter Segall | Juneau Empire File)

The Alaska state flag on the bow of the MV Matanuska at the Auke Bay Ferry Terminal on Thursday, Feb. 6, 2020. (Peter Segall | Juneau Empire File)

Lawmakers approve $66.7M for Alaska Marine Highway System

Legislators increased the operating budget for ferry service by around $20 million.

ANCHORAGE— The Alaska Legislature has approved a $66.7 million budget appropriation that lawmakers said should keep the Alaska Marine Highway System running for the year.

Legislators increased the operating budget for the state’s ferry service by around $20 million over the previous year, CoastAlaska reported Monday.

An estimated 42% of the overall $122 million ferry budget is expected to come from ticket sales for passengers, vehicles and freight.

The appropriation should guarantee at least one ferry is available as relief if another vessel breaks down, said Sen. Bert Stedman, R-Sitka.

“So we don’t face again what we faced this winter, which was no service at all,” Stedman said. He called that situation “totally unacceptable.”

The budget adds another $19 million for repairing the ferry Aurora, which is laid up because of cost-cutting, and adding crew quarters to either the Hubbard or Tazlina to extend their ranges.

The two ships are the system’s newest, known as Alaska Class Ferries. But as currently configured, they serve as relatively short-range day trip boats.

“The intent of the legislature is to keep the Aurora,” Stedman said. “We support crew quarters to make the Alaska Class Ferries more versatile.”

The operating budget includes about $16 million more than Republican Gov. Mike Dunleavy proposed, which should provide about 25% more service, according to Department of Transportation figures.

Dunleavy proposed a $49.9 million ferry service appropriation in the budget he submitted in December, which was an increase over the $46 million approved by the Legislature in May 2019.

Cuts to the system’s budget have been compounded by maintenance and other issues, prompting the Alaska Department of Transportation to contract with private companies to transport people on smaller catamarans with no vehicles or heavy freight were allowed.

Rep. Dan Ortiz, I-Ketchikan, said the Legislature wants to bring stability back to the state’s ferry network.

“I think we’ve put the marine highway system in the place where they should be able to provide adequate service throughout the system,” Ortiz said. “As long as the governor doesn’t veto those monies.”

A veto remains among Dunleavy’s options. A $250,000 study commissioned by the governor found that privatizing the ferries is not feasible. He appointed a working group to recommend ways to cut costs.

• This is an Associated Press Report.

More in News

The National Weather Service has issued a flood watch for Friday morning through Saturday for Juneau and much of the Southeast. (NWS screenshot)
Governor declares state emergency ahead of heavy rain to hit Juneau Friday

The state declaration comes after city and tribal officials declared a local emergency and requested state assistance.

The City and Borough of Juneau encourages residents to assist in the efforts to clear storm drains as heavy rainfall is forecast (Mari Kanagy/Juneau Empire)
Heavy rain forecast for Juneau as atmostpheric river approaches

While snowpiles are shrinking, rain falling on snow and ice has made streets slick and wet.

Mari Kanagy/Juneau Empire
A tow plow drives along Glacier Highway on Monday, Jan. 5.
Rain-snow showers and a gradual warm-up forecast for Juneau

The city is set to see more manageable precipitation this week after days of relentless snowfall.

Alex Bookless and Rachel Levy
Juneau exhibition evokes the entity of womanhood in print

“My Mother’s Bones” is an exhibition by Rachel Levy and Alex Bookless.

The Fred Meyer gas station roof collapsed early morning on Thursday, Jan. 1.  (Mari Kanagy/Juneau Empire)
Fred Meyer gas station awning collapse raises concern over roof stability

The amount of snow that each roof can handle is highly variable.

A mound of a snow obscures a "student drop off" sign near Sít' Eetí Shaanàx-Glacier Valley School. (Ben Hohenstatt / Juneau Empire file photo)
Schools and city facilities are closed amid another winter storm

A winter storm warning is in effect with snow dump of around one foot forecast for the day.

The Alaska Department of Transportation and Public Facilities drops explosives via helicopter to trigger controlled avalanches above Thane Road in February 2023. (Clarise Larson / Juneau Empire file photo)
DOT&PF reduces avalanche hazard over Thane, Mount Juneau remains a risk

They flew over the snowpack above Thane in a helicopter Thursday to test for controlled avalanche.

A whale tale sculpture on the downtown docks glows on New Year’s Day 2026. (Mari Kanagy / Juneau Empire)
January’s First Friday: Here’s what to see

Juneau Arts Humanities Council announced a preview of community events on First Friday.

Mendenhall Glacier, Governor Mike Dunleavy, and glacial outburst flooding are pictures in this collage of news stories from 2025. (Juneau Empire file photos, credits left to right: Jasz Garrett, Jasz Garrett, Chloe Anderson)
Juneau’s 2025 year in review

The Empire revisited eight major topics as their headlines progressed.

Most Read