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Mayor Berkowitz’ choice: Safety or snowplowing – you can’t have both

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The snow hasn’t been extraordinary in Anchorage this year. It seems so, after a couple of unusually warm winters, but it’s well within the norm for Latitude 61.

Removing it from the streets to make driving safer, however, appears to be more than the municipality can do.

Mayor Ethan Berkowitz this week used the latest snowstorm for political advantage to drive home his message about the need for more taxes:

 “It’s a foreseeable consequence of not having adequate revenue to handle our responsibilities,” Berkowitz said. In layman’s terms: “I told you so. We need more taxes.”

For property taxpayers who are already shouldering the burden, it was an odd statement from a mayor who last year promised to give taxpayers a rebate after the city collected too much of their hard-earned cash.

RAISES FOR EVERYONE: Last year, Berkowitz also gave some 30 fire and police supervisors raises of $20,000 to $30,000 apiece. Those raises totaled $840,000.

As Assembly woman Amy Demboski pointed out, the city also gave $7 million in raises to city workers last year.

This week, the Assembly voted to approve a new IBEW contract that contains a 5.01 percent increase in pay and benefits for the next three years.

Demboski was not impressed: “When they continuously hand out raises…they are not living in reality.”

MORE POLICE OFFICERS, MORE MURDERS TOO: As a candidate in 2015, Berkowitz said the city needed 400 police officers. The city has now hit that target, but Berkowitz has moved the goalpost and now says the city needs 450 sworn officers. Anchorage had a record number of murders in 2016, and already this year two residents have been gunned down.

THE VANISHING REBATE: Last year the city ended up with about $20 million in excess funds received from taxpayers, and the plan in July of 2016 was to return a small portion — $5 million — of the money to property owners before December, 2016.

But first, Assembly members Eric Croft, John Weddleton, and Forrest Dunbar wanted to give the bulk of the excess money to homeless projects. The mayor in 2016 wanted to use some of the money to transition to a vote-by-mail election. And then the Assembly set an even higher mill rate for property assessments, with tax bills going up by about $45 for a property worth $300,000.

Six months after that discussion in the Anchorage Assembly, the rebate promised has never materialized. And it looks like taxes will be going up again.

This month, the mayor is proposing taking money from still more parts of the budget to pay for housing grants that will help people — some of them chronic inebriates or with mental illness — from becoming homeless. Berkowitz is proposing giving $216,000 to NeighborWorks Alaska for the Tenant-Based Rental Assistance Program, which helps with rent and security deposits for individuals and families in need.

Juneau’s downtown homeless are health and safety issue

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By WIN GRUENING

When Mayor Ken Koelsch recently proposed a city ordinance prohibiting camping in downtown Juneau to help resolve on-going issues with our homeless population, there was significant public reaction.

Many believe the mayor’s proposed action is long overdue, but others accused him of being insensitive and cold-hearted. A fair and complete understanding of the complex issues involved might dampen the misinformation being spread through social media.

Win Gruening

This issue is not unique to Juneau. Over the past several years, due to public health and safety concerns, Anchorage and Wasilla have been forced to close homeless camps.

Problems associated with Juneau’s chronically homeless, most of whom are chronic inebriates or have mental health issues, persist throughout the downtown area. In response to complaints, police have worked to stem the number of negative incidents caused by some members of our homeless population. Yet complaints, especially among visitors and business owners, have multiplied. This issue reflects directly upon our community and affects all of us — whether resident or visitor.

Our police force, EMTs, local hospital and a whole host of social service agencies and nonprofit organizations have struggled to balance the needs of this population and still address concerns affecting visitors, residents and business owners. The cost of doing this has been tremendous.

In response, the Assembly invested $1.5 million to aid in construction of a 32-bed Housing First project to house and treat the chronically homeless. This facility — scheduled to open in a matter of months — will help relieve the situation by providing alternatives for some of the homeless.

But recently, the problems have become more pervasive and disturbing. According to some merchants, the number of homeless on our streets has increased and is represented by a younger more violent group of individuals who are unmanageable and often under the influence of drugs such as meth and heroin. Vandalism is increasing, and threatening behavior is becoming more commonplace.

These newcomers are camping on private property in business entryways, getting into fights, vandalizing property, defecating in public areas, littering, and intimidating shoppers and downtown workers. Not surprisingly, residents and visitors have expressed fear for their safety when walking downtown — especially at night.

As recently as last week, two legislative staffers moving into rentals on South Franklin had possessions stolen from them during the day. After several threatening incidents, the executive director of the Glory Hole has considered arming herself with bear spray.

Opponents of the no-camping ordinance are worried the homeless will be forced to migrate into residential areas or other locations due to the lack of available shelters and campgrounds.

Recognizing this, Mayor Koelsch and staff are simultaneously working on alternatives, near fruition, for homeless individuals who are unable to find shelter. Negotiations are underway with the Salvation Army to provide an emergency warming shelter that would be available when temperatures fall to low levels. Other efforts include leasing campground space near downtown that would be open during the winter months.

Unfortunately, even when shelter and treatment alternatives are available, many of the homeless choose not to take advantage of them and prefer to stay camped on private property. Juneau Police Department Chief Bryce Johnson testified recently that during a voluntary outreach program in which officers and social service agencies talked with people camped in the doorways of downtown businesses, only one person voluntarily agreed to get up and move into a shelter.

And this is the crux of the issue. The police are unable to legally remove anyone from private property without the owner filing a formal complaint. Most often, this situation occurs in the evening after the business has closed and can be an expensive and time consuming process.

This is unfair to working families and proprietors owning downtown businesses and their employees who must work under these conditions.

Hence the need for a no-camping ordinance in the downtown core. According to JPD Chief Johnson, while violators would only be guilty of an infraction, this will give police a tool to help move people to social services and reduce potentially volatile situations.

Think about this. If a homeless individual camped on your front porch, how long would you tolerate it before you called the police? Yes, the homeless deserve compassion and may be homeless due to circumstances beyond their control. But they are not helpless and must be willing to respect private property and not be a threat to the general public.

Government cannot address this alone as budget pressures continue to reduce services. Those expressing concern for the plight of our homeless can help by directing their generosity and concern to helping raise funds for additional shelter space and social services.

Mayor Koelsch deserves credit for tackling this messy and uncomfortable issue head-on. This shouldn’t be an issue where anyone needs to take sides. Everybody is trying to achieve the same thing — a safe inviting downtown district and helping our homeless population with basic needs and services. The proposed ordinance is just one step in accomplishing that. Let’s work together on the rest.

 Win Gruening was senior vice president in charge of business banking for Key Bank. Born and raised in Juneau, he is active in civic activities at the local and state level.

Grenn’s ‘ethics’ bill would put all lawmakers on ice

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Jason Grenn / from social media

Newly elected Rep. Jason Grenn wants to make sure that any legislator who works for an oil company cannot vote on anything related to oil, taxes, tax credits, or even exploration and development in Alaska. Ditto for oil services companies or those who contract with oil companies.

In fact, no one with any kind oil-patch job would be able to vote on the budget, in Rep. Grenn’s ideal scenario, because the State of Alaska budget is paid for by oil revenues.

If you can’t vote on the budget these days, what are you even doing in Juneau as a lawmaker?

Blocking oil company workers is Grenn’s real reason behind HB 44, “Voting and Conflicts,” which was to be heard today in House Judiciary (Democrat Matt Claman, chair), but which was delayed to Friday with no reason given.

It’s also why in the Capitol, aides refer to HB 44 as the “M&M Bill,” code for the “Meyer/Micciche Bill,” because both Sen. Kevin Meyer and Peter Micciche work for ConocoPhillips, and they are always attacked by Democrats for holding down jobs with Big Oil.

As a candidate, Grenn said he was running for office because, “Our current Legislature failed Alaska when it went back to Juneau for five overtime sessions to deal with the most serious fiscal crisis in state history and took no action.”

Yet, as someone who has been put in charge of vetting the budget for the Department of Administration, Grenn is now busy working on his first “practice” bill. And he’s chosen Republicans Meyer and Micciche as his targets.

 

Before Grenn sits in front of Judiciary and offers his bill for deliberation, we’d offer members of the committee some additional questions:

Should union lawyers like Senate Democrat Bill Wielechowski be forced to sit out their votes on anything related to the budget, since nearly all budget items pertain to union members?

Will House Democrats Andy Josephson and Geran Tarr have to sit out any votes on oil taxes or environmental policy? After all, in  December Josephson offered the official state offices of Josephson and Tarr to the environmental lobby group The Alaska Center, which is a clear indication that the two have already prejudged environmental matters to come before them. (This is a matter the Legislative Ethics Committee should take up, regardless.)

Will House Democrat Zach Fansler vote on the budget if it includes cuts to the University of Alaska, where he teaches math (at the Kuskokwim campus)?

House Democrat Chris Tuck works for a union — will he have to abstain from voting on the budget, since it will affect his employer?

Or, as Senate Republican Mia Costello noted, will anyone with children in the public schools have to recuse themselves from voting on the budget, since their children will be affected?

Speaking of conflicts, the sponsors of HB 44 include House Rules Chair Gabrielle LeDoux, who now runs Gabby’s Tuesday PAC, where she accepts money from lobbyists through a loophole that only a crafty lawyer like her could have found.

Those lobbyists now know what it takes to get legislation past her committee and onto the House Floor: “That’ll be $5,000, please.” They don’t need to be told — they’ll just fork it over because they know they have to.

Should LeDoux be banned from voting on ethics legislation that would close that loophole?  For that matter, should she be banned from voting on fishing legislation because she owns a driftnet permit in Bristol Bay? Or how about landlord legislation, since she owns several rental properties?

Other HB 44 sponsors are Musk Ox Republican Rep. Louise Stutes of Kodiak, and Democrats Ivy Spohnholz of Anchorage, Justin Parish of Juneau, Fansler of Bethel, Geran Tarr and Harriet Drummond, both of Anchorage.

“Whatever happens on Nov. 8, let’s make a commitment to put partisan agendas on the shelf and deliver the responsible fiscal plan that our state desperately needs. Alaskans deserve it. And I would be honored to be a part of it,” Grenn wrote last year.

That was so last year.

This year, Grenn is starting out of the gate not with serious intent to trim state government, nor make it more efficient. He is going after the people in the Legislature who hold jobs in the private sector.

Grenn’s statement on HB 44 says: “HB 44 contains provisions to ensure conflicts are “substantial” before a legislator would be required to abstain from voting. Any benefit a legislator or a member of the legislator’s immediate family might receive from supporting a particular piece of legislation would have to be greater than the benefit a large group of Alaskans would receive in order to require abstention. The bill and resolution recognize the responsibility of legislators to vote, except in clear cases where the outcome of the vote would result in substantial personal financial gain. This includes cases where an immediate family member or a legislator’s employer would receive a large and direct financial benefit.”

Substantial financial benefits might include having a job, which Grenn himself had until he left it to become a lawmaker.

If HB 44 was passed, lawmakers like him would try to block others from voting on matters by raising conflict questions that would have to be sorted out before a vote could proceed. Lawmakers who have no jobs would hold the hammer over the heads of those who do.

These challenges would be taken to the Legislative Ethics Committee time and again, and the process being used to block progress.

Grenn’s bill is a solution in search of a problem. He would introduce a layer of uncertainty into the ethics law, which today features simplicity and accountability.  Fellow legislators already declare their conflicts and their colleagues vote on whether or not they should refrain from voting on an issue. This is transparent. Citizen voters have the final say come election time.

BIG STATE, SMALL COMMUNITY: Alaska is a medium-sized U.S. city in terms of population and it’s a place where employment options are limited, and the oil industry is one of the major employers.

Grenn’s bill runs the very real risk of disenfranchising the voters of districts where there is actual employment, in favor lawmakers who have no real jobs. This undermines the principle of a citizen legislature.

Grenn, who is a nonprofit guy whose last job was funded by the Rasmuson Foundation, has his own conflicts, including his acceptance of substantial support from the Alaska business community during his election.

Now, he’s going after those who are employed by the business community. His bill would make it less likely that people who work in the private sector even bother to run for office in the future.

By using his M&M bill to pick fights with legislators rather than focus of trimming the budget, Grenn is off to a questionable start.

Murkowski retains control of Interior Department’s budget

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U.S. Sen. Lisa Murkowski, R-Alaska, has again been chosen as chairman of the Appropriations Subcommittee for the Department of Interior’s budget, a role she gained in 2015.

The subcommittee is critical to Alaska, as it controls funding for a federal agency with multiple subdivisions that have a huge footprint in the state.

“As Chairman, I have the ability to directly influence how these agencies operate, whether that’s blocking excessive regulations or directing federal resources to where they are needed,” Murkowski said. “I will continue to be a tireless advocate for our state and look forward to providing greater opportunities for Alaskans to build the economy and create healthy communities.”

The Interior, Environment, and Related Agencies Appropriations Subcommittee controls funding levels for federal agencies and the Department of the Interior, Environmental Protection Agency, Bureau of Land Management, Fish and Wildlife Service, Forest Service, National Park Service, U.S. Geological Survey, Bureau of Indian Affairs, and Indian Health Service. Murkowski, as Chairman, is able to write the Senate’s annual appropriations bill for the subcommittee.

City to citizens: Want street plowed? Move your car

In Anchorage? Get ready for a slush fest, as warm weather hits these snowbanks in the next 48 hours.

The snow is only going to get heavier with the warm front that is coming this way, so you may as well get on it now.

And to encourage you, Anchorage Police Department issued a unusually chipper message on the Nixle app this afternoon. Take note of the personable tone, which might almost make you want to shovel snow:

Mother Nature, bless her heart, has decided we should get all of last year’s snow AND this year’s snow.  All at once. Fabulous.  So you know all of that white stuff you’ve been repeatedly shoveling out of your driveway?  The plows need to remove it from our streets.  But they can’t do it without your help.
 
Please remove your vehicles from the roadway so the plows can make it easier for all of us to drive.  Not only is it difficult for our amazing plow operators to navigate those big machines around cars, but in some places, there is so much snow build-up and so many cars on the street that the plows simply don’t fit.  They have to drive on past the neighborhood.
 
I know you know where your shovel is because you’ve been using it non-stop the past three days.  So please take it out to your car, unbury your vehicle, and move it to the driveway.  Thank you so much for your help.  The plow drivers thank you too!!
 
 Municipal Code 9.30.150 – Parking for longer than 24 hours – No person may park a vehicle on any street, vehicular way or area, or municipally owned parking lot for a period of time longer than 24 hours, except from Friday noon until Monday noon.

To receive alerts from the Anchorage Police Department (and they can be helpful, especially regarding emergencies and road closures) text your ZIP code  to 888777, or walk through the process at https://local.nixle.com.

A word to the wise: Not all of the Nixle warnings are so insufferably cheerful.

Juneau Assembly votes 6-3 favoring the ‘paid in full’ Juneau Road the governor deep-sixed

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Juneau residents pack the Assembly chambers on Monday night, many of them well-organized opponents of a road to Juneau.

At a packed Juneau Assembly meeting on Wednesday, people sat on the floor and lined the walls, many of them there to oppose or support the Juneau Access Project, which was one of the subjects of the meeting.

The testimony of attendees was fairly split between pro- and anti-road, with the pros having a slight advantage, and the Assembly voted 6-3 in favor of a resolution supporting the long-delayed project. That resolution will marched up the hill to the Governor’s Office, where Gov. Bill Walker last month decided there will be no road to Juneau.

The Juneau road has been contentious for years, with well-organized environmentalists funded by Outside environmental groups blocking it since the 1990s.

Environmentalists say they like the ferries the way they are, and don’t want the road extended by 50 miles so that ferries can make a short crossing to Haines and Skagway several times a day.

The project, euthanized by the governor, is shovel ready and paid for in full with funds the governor is now going to divert to other communities.

Assembly woman Beth Weldon reminded her colleagues on the Assembly that since she was unopposed for her seat on the Assembly, she employed sports team members to do a short survey door-to-door in her Mendenhall Valley district in the days leading up to the municipal election.

Her district, she discovered, wants the road, by a 2-to-1 margin.

Assembly woman Debbie White laid out her math: It cost a family of four with a vehicle some $700 to make a round trip to Skagway, and that’s with a 68 percent subsidy paid by the state.

“There’s no way that subsidy can continue, when 30 miles of that trip is parallel to an existing road,” White said, adding that Haines has a road to the main highway system and so does Skagway. Juneau only wants what Haines and Skagway already have — affordable access.

Opponents said road maintenance was going to be more than ferry fleet maintenance, but for boat owners, the word B.O.A.T. is an acronym for Bring On Another Thousand. Ferries pushing water around Northern Lynn Canal are costing the state tens of millions of dollars a year to subsidize, and often they are far from full. The state is subsidizing out-of-state people to bring their cars on the ferry as well, but even in the summer the car decks are often not full because people cannot afford the ferries.

“The only way the ferry system can continue to survive is to shorten what runs we can shorten, otherwise neighboring communities like Angoon, Hoonah, and Tenakee are going to suffer,” White said.

Ferries burn over 1,400 gallons of diesel for each one-way trip between Juneau’s Auke Bay Ferry Terminal and Skagway. A regular-sized truck would burn just three gallons of diesel to get to the Katzahin terminal that is planned in the Juneau Access Project. The remaining distance is only a short trip, that the new Alaska Class ferries would make several times a day.

Governor Walker said in December that the State cannot afford the Juneau Road, which is was paid for by the federal government.

Instead, Walker said he plans to reallocate the designated funds into an airport project in Angoon, a ferry terminal project in Skagway. Word is he may also retrofit the Alaska Class ferries being built in Ketchikan as day boats for the Juneau Access Project, and turn them into overnight vessels, which will drive up the labor costs.

 

 

House Democrats: Budget will get ‘lounge’ review

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Rep. David Guttenberg, member of House Democratic Majority

Last week, House Majority Finance Co-chair Paul Seaton, a Musk Ox Republican out of Homer, issued an eight-page memo describing how the new Democrat-controlled Finance review process would work. Seaton has kept his Republican veneer but has joined the Democrat majority.

Instead of subcommittees from the House Finance Committee executing the first deep dive into departmental budgets, those budget reviews will now be part of the existing House standing committees that are tasked with hearing, amending, and voting on policy and legislative bills that are referred to their committees.

The standing committees are intended for policy and law. That’s why the Finance Committee has always structured the budget review through its own subcommittees: They keep their focus on the numbers.

A structural problem arises with the Seaton process: Policy committee chairs cannot also be Finance subcommittee chairs. Seaton overcomes this by placing one Democrat Finance Committee member into each policy committee, and that person leads the discussion and decision making on budgets referred to that committee.

Clear as mud?

That’s the way it looked during the first meeting of the House Resources Committee this week.

Rep. David Guttenberg, a Democrat from Fairbanks, is the Finance member placed into House Resources for the purpose of taking over as defacto chair when it comes to the budget.

The House Resources Committee has a full plate of policy, what with examining oil and gas tax credits, and the expressed desire of the Democratic co-chairs to give the current, voter-approved oil tax structure, Senate Bill 21, a thorough whipping.

Guttenberg described the process of how to work financial deep dives into the standing committees as evolving.

“Each person who chairs a subcommittee has different answers,” he said.

As for his role, Guttenberg made it clear he would not be cutting any more state jobs nor looking to curtail travel, and he planned to issue a “narrative report” to the Finance Committee that will be reached through a  “consensus process” on the budget process, without taking a vote.

Republican members of the House Natural Resources Committee and observers were somewhat stunned that Republicans will be asked to join a consensus on the budget, rather than being allowed to vote. Most Republicans want to continue to trim the budget and won’t want to be placed in a position counter to the will of their own district.

When Republican members of House Resources asked how consensus would be achieved, Guttenberg said there would be conversations in the hallways and the legislative lounge.

We are not making this up.

It also appears that no amendments to the budget can be made in the subcommittee/policy committee; all budget amendments must be forwarded to Rep. Seaton through a yet-to-be-launched limited access database, similar to one  used for the capital budget (known as CAPSIS)

Rep. Chris Tuck of Anchorage said this process will provide more transparency because the policy committees are televised and will be held during working hours.

But the previous process was audio available and the evening and weekend budget reviews allowed working Alaskans at least equivalent access.

House Republican members of the Finance Committee have been placed on about half of the policy committees. Democrats are firmly in control right now of the House review of the state budget.

This “still evolving” process promises to be less than transparent.

Given that Guttenberg has already stated publicly that he has no interest in further cuts to personnel, travel, or anything else, the Democrats’ budget review may be more of a rubber stamp for the Governor’s budget proposal.

Gasline to save us? Hearings today

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Screen Shot 2017-01-23 at 11.10.40 AM

“We have no other project that will revitalize our economy the way the gasline will.” – Gov. Bill Walker, State of the State Address, January 18, 2017

The Alaska LNG project is Gov. Bill Walker’s plan to save the Alaska economy. Unfortunately, few of those knowledgeable in the field are lining up behind him.

Today, the Alaska House Natural Resources Committee and the Senate Natural Resources Committee receive their periodic updates from the Alaska Gasline Development Corporation on the progress being made toward a $65 billion project that AGDC is charged with completing.

The private sector partners have all left the project: TransCanada, BP, ExxonMobil and ConocoPhillips are out. Governor Walker is in charge.

At today’s hearings, the vice presidents of AGDC are expected to give testimony, because President Keith Meyer is in Japan checking out the new AGDC office in Tokyo.

PRE-FEED DONE: The pre-front-end engineering and design work has been completed for the LNG project.  What’s logical now is to move into the FEED stage. FEED is the last “gate” in the decision-making process. In this business, if you get as far as FEED, you’re very likely to have a project.

Alaska is not there yet. The private partners did not want to move ahead with a project that was not economical for them. Gov. Walker wanted to go it alone.

PRE-FEED 2.0: What is likely next is FEED-light or a gap year of pre-FEED, burning up the clock while locating new financing, now that the partners have left.

The governor will have to go out on the financial markets, perhaps to a sovereign fund from a foreign entity, and secure financing. How that financing will be collateralized — or guaranteed — is of concern to Alaskans. Ultimately, it may put our largest asset, the $50 billion Alaska Permanent Fund, at risk.

GAS GLUT: There’s a lot of talk about “windows” of time when natural gas will not be abundant in the Pacific basin, as it is today.

Meyer of AGDC says the window is between 2023 and 2025.

BP’s economists say there may be a “gap in unmet demand” in 2025-2030.

No one is that good at saying what the window will be, because there are too many unknowns in the market. Essentially, players can get a forecast that tells them anything they want to hear.

But what we know right now is that gas is $3 a mmbtu, or million British Thermal Units. It’s flowing out of the Gulf Coast toward Asia and it costs a total of between $8 and $9, delivered to the same customers Alaska wants to court.

The Wood Mackenzie Report commissioned last year for BP, ExxonMobil, and AGDC shows Alaska’s best case scenario is $11 per mmbtu, delivered. That makes Alaska’s project one of the highest cost options in the world.

CONVERTING IT TO A UTILITY MODEL: When that $11 number came out, it was obvious why the private sector was backing away and suggested if the State insists on moving forward, it consider the gasline a utility, which can operate on a lower rate of return. It would be considered state infrastructure, such as a toll road, which a state might build and then charge people to drive on.

A key component is that the federal government not tax the project. But in reality, that’s a long shot. In a report by Manley & Brautigan to the Legislative Budget and Audit Committee, the tax lawyer Charles Scheutze concluded:

Screen Shot 2017-01-23 at 11.07.44 AM

This is a good deal different from the project being described by AGDC. The lawyer is saying that the project must be owned, developed, and operated by the State in order to avoid taxation.

Having the State actually operating the gasline is of great concern to those who have seen other government-run projects experience lavish cost overruns. It is also alarming to those familiar with the poor track record the State of Alaska has amassed over the years dabbling in private sector endeavors.

The work ahead for the next year or two is nontechnical, financial work. There will be no buying of steel in the near future. Those who work on the gasline project will be working with bankers and private equity companies. They’ll be sorting through the legal issues and the commercial agreements.

There won’t be any big breaking news during this timeframe. The signals to watch for will be nuanced from the Governor’s Office. Look for a possible change in the next year, and a new look at a downsized gasline for in-state use only — owned and operated by the State of Alaska.