Transportation

Transportation

Ferry system back to normal State ferries returned to their normal schedules after agreement was reached on a contract dispute with striking vessel crew members. Alaska Airlines and southeast barge operators did some fast juggling to take care of people stranded in the recent strike by state ferry workers. In one instance Alaska diverted its Flight 77 (Juneau to Anchorage) to Wrangell to pick up people, making it the first-ever direct Wrangell-to-Anchorage flight. At times up to 225 people and…

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Infrastructure

Infrastructure

Ketchikan dock construction Ketchikan’s Ward Cove group has started construction on a $50 million cruise dock and shoreside facility at the former Ketchikan Pulp plant site. The partners in Ward Cove are Power Systems and Supply of Ketchikan and Godspeed Inc. of Fairbanks, the latter owned by the Binkley family. The project involves refurbishing former pulp company buildings initially into office and bus shuttle facilities, with retail and entertainment to be added in later phases. Work on a floating dock,…

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Health Care

Health Care

State cuts Medicaid payments Emergency reductions in state Medicaid payments were ordered by the state administration in late June, cutting payments to health care providers 5 percent and freezing an inflation adjustment. The combined effect is a reduction of 7 percent to 8 percent, health providers say. The Alaska State Hospital and Nursing Home Association filed suit against the state arguing that proper procedures in changing regulations on payments were not followed. SEARHC now has Sitka hospital It’s official: Sitka…

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Continued recession? It’s up to the governor

Continued recession? It’s up to the governor

AEDC predicts deeper downturn if budget cuts prevail Whether the state’s recession bottoms out this year and economic growth gradually renews, or whether the recession will deepen and extend for three or more years basically depends on Gov. Mike Dunleavy. Anchorage Economic Development Corp., working with McDowell Group, the consulting firm, laid out a gloomy scenario for the regional economy if deep budget cuts proposed by the governor actually happen (see page 3 for the current situation). In January, in…

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Economic Report 6-19

Economic Report 6-19

March 28, 2019 In this Issue: Employment edges up, led by construction, oilUptick is slow but appears to gather momentum U.S. Navy coming back to Adak? Health careState backs out of Wellpath dealMedicaid changes being planned?Fairbanks gas utility hits bumpsKenai plant to import LNG? The outlook in Juneau: Foggy!Big PFD as a compromise? Business IntelligenceAdak argues it can be freight container hub for Arctic shippingTelecom companies feel the effects of state’s recessionJuneau solicits ideas on using cruise tax revenueNew ferry…

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Economic Report 5-19

Economic Report 5-19

April 19, 2019 In this Issue: Hilcorp starts production at its new “Moose Pad” project State’s economy tips up; let’s not mess it up EnergyIGU cuts out of Siemens dealPetersburg hydro upgradeUAF coal power plantChugach, ML&P deal proceeds Economic data from Northrim presentations Business IntelligenceA growing industry? Farms up 30 percent between 2012 and 2017Influential anchorage business group focuses on food supplyBristol bay subsidiary expands in western Alaska fuel supplyFairbanks will raise taxes due to governor’s cutsSome anchorage businesses still…

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Economic Report 4-19

Economic Report 4-19

March 28, 2019 In this Issue: Economy perks up; now budget hits raise worryFirst employment increase in three years; may decline againBusinesses fret over Anchorage port modernization InfrastructureMat-Su transportation grant  EnergyRailbelt utilities at odds, againLower water levels in Southeast Health careNew hospital planned for Sitka If governor prevails on budget, huge adverse impacts Petroleum, construction lead rise in statewide employment Health care growth slowed in February; Medicaid cuts will slow it further  Business IntelligenceDespite austere times, state nurtures strategic developments Permanent…

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Economic Report 3-19

Economic Report 3-19

March 7, 2019 In this Issue: Governor’s budget shakes business confidence Uncertainties now cause projects to be delayed Legislators are not about to accept Dunleavy’s budget, and will write their own Infrastructure Skagway dock options eyed Transportation Truckers’ big economic clout Plan to delay ferry service cutoff Energy Southeast hydro: Low water GVEA drops Eco-Green deal Rural renewable energy program UA’s new power plant to fire up State gas project “shutdown”: Sending a signal? Talks underway with two of three…

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Economic Report 2-19

Economic Report 2-19

Feb. 14, 2019 In this Issue: Native corporations’ new stake in slope oilNew projects will pay $173 million/year in royalties at peak EconomyMat-Su showing job gains Health CareMedicaid covers 210,000 Alaskans Governor’s budget cuts hit across the state Business IntelligenceConstruction spending nudges up this year; oil, militaryCruise tourism will show sharp growthAnchorage looks at tax holiday for new housingBethel’s farm now serves outlying villages in Y-KAIDEA business loans show a dip, likely due to recessionMore small communities out of compliance…

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Minerals

Minerals

Southeast rare elements search Australia-based Northern Cobalt Ltd. will explore for rare elements in an area 35 miles southeast of Juneau, in Southeast Alaska. The company applied for permits with the U.S. Forest Service. The prospect, a potential vanadium bearing magnetite, is within the Tongass National Forest. Northern Cobalt plans three test holes in August, the deepest drilled to 1,400 feet. One attraction for the company is proximity to electric power from the Snettisham hydroelectric project, which is nearby. EPA:…

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