MAT-SU at rock bottom in per capita funding i

MAT-SU—More than a third of the people who testified today via telephone on the State capital budget were MAT-SU residents. And in Juneau, MAT-SU Borough Manager John Duffy presented to the House Finance Committee the lopsided number of dollars going to other communities in the proposed capital budget.

MAT-SU is at rock bottom in per capita funding, he told them.

“We also ask that the financial pain from the budget shortfall be shared equally throughout the State,” Duffy testified. “The present capital budget places a disproportionate share of the burden on the residents of the MAT-SU Borough.”

While Southeast is receiving $1,386.14 per person; Anchorage $885.13 per person, and Fairbanks $993.40 per person—Alaska's fastest growing community, MAT-SU, is receiving the lowest per capita funding, $387.80 per person.

A closer look at the numbers reveals a starker reality. Only $356,040 out of $32,000,000 budgeted for MAT-SU Borough is for a Borough project, the remaining funds are for state projects in the Borough. This reduces the funding for Borough projects to $4.32 per person.

Such minor State investment here is contrary to the future large returns to the State of Alaska from Borough projects. It's also overlooking the demands of consistent population growth.

No one in the state is growing like the MAT-SU: In just eight years the population grew 35 percent. By 2030 the population is projected to triple. Already a school is built nearly every 18 months, sometimes two in a single year.

Two Borough projects add big dollars to State revenues and to the State economy yet they are not receiving much if any State investment.

The Goose Creek Correctional Center is going to add $100 million in payroll to the economy over the course of its construction, as well as 350 state jobs that otherwise would be in Arizona, where many inmates are housed now. Funding for it fell from $20 million to $6 million. Ground is being cleared now.

The Port MacKenzie Rail Extension is projected to add $18 billion in revenues to the State through mining taxes, corporate taxes, and royalties as the rail opens new opportunities such as a limestone mine up north. Port Mac Rail will also save gas line producers more than $100 million over other Alaska ports if heavy materials move through Port MacKenzie. And yet, Anchorage Port is likely to be funded at $20 million, the MAT-SU Port: Zero. Port Mac Rail—the state's next legacy project— Zero.

While other communities are receiving state funding without fronting a dime, the MAT-SU can't get a state match for its local match for road bonds. In October, voters agreed to pay 30 percent of seven road projects if the state would lend support. Voters agreed to tax themselves $15 million if the State would appropriate $35 million. State Department of Transportation officials were calling the effort a model road-building program. So far, no state dollars are promised, which means the voters' road bonds go nowhere.

Three of the top four most dangerous roads in the state are in the MAT-SU. The seven roads will reduce traffic and increase safety on these dangerous State roads.

As of April 15, the lone Borough project is water pipes for the subdivision Garden Terrace at $356,040.

State projects within the MAT-SU are:

Goose Creek Correctional Center: $6,000,000
Trunk Road: $10,000,000
Susitna Valley High School traffic safety: $38,200
Willow airport master plan: $250,000
Parks Hwy milepost: 72-83: $6,800,000
MAT-SU park and ride: $900,000
Glenn Hwy milepost 34-42 rut repair: $8 million
Grand total: $32 million

For more information call Patty Sullivan at 745-9577 or email This email address is being protected from spambots. You need JavaScript enabled to view it.
or John Duffy on his cell at 232-5277.

To see graphs illustrating how rock bottom MAT-SU is, click on link labeled "2009/2010 Senate Capital Budget".