House Finance Hears Sharp Divide Over $95M for West Susitna Road

The Alaska House Finance Committee heard public testimony Wednesday on the capital budget, with sharp debate over a proposed $95 million appropriation for the first 22 miles of the West Susitna Access Road. Opponents argued the project primarily benefits private mining companies. Supporters said it would unlock economic development and public access.

The hearing ran from 4:46 p.m. to 6:40 p.m. on April 29. It also included testimony on restoring Homeless Assistance Program funding and support for the Arctic Winter Games in Fairbanks. Public testimony was scheduled to end at 6:30 p.m., with callers able to add themselves to the schedule until 6 p.m.

The West Susitna funding is included in Senate Bill 214. The bill was introduced in January and moved through the Senate Finance Committee in April. Members Olson, Hoffman, Stedman, Merrick and Kiehl voted Do Pass on April 16. When the full Senate took up the measure on April 21, three amendments were proposed. Senate Amendment No. 1 failed 7-12. Senate Amendment No. 2 failed 6-12. A third amendment was offered and then withdrawn. The Senate passed the bill 19-0 with one member excused and transmitted it to the House the same day. The House Finance Committee received the bill on April 22.

The $95 million would cover the initial phase of a 100-mile industrial corridor estimated to cost between $800 million and $1.26 billion when complete, according to testimony from Lois Epstein, an Alaska-licensed engineer who analyzed a 2014 state reconnaissance study.

Karen Garvey testified the road would cross 182 streams, with 171 requiring culverts and only 83 designed for fish passage. Bob Butera, a civil engineer who worked on the 2019 reconnaissance study, said the project would cross 156 rivers and streams and require 11 bridges. Butera said one bridge across the Susitna River would be 2,200 feet long, 700 feet longer than the Glenn Highway crossing at the Knik River, making it the longest bridge in south-central Alaska.

Garvey said federal environmental review remains incomplete. Thane Piscoya, vice president of Alexander Creek, echoed those concerns. He said the road would adversely affect hunting, fishing and indigenous cultural sites including burial grounds.

Butera said the project has shifted from a mining access road to be paid for by the Alaska Industrial Development and Export Authority to a recreational access road funded by the Department of Transportation. "Every dollar spent on the West Susitna Access Project is money taken from construction operations and maintenance of the basic transportation needs that serve the majority of local residents," Butera said.

Mark Miller, owner of Dallheim Lodge, compared the appropriation to buying a car without knowing the total price or maintenance costs. "We are being asked to move forward without a clear total cost, without long-term maintenance projections and without any companies committed to paying for it," Miller said. He estimated the road would generate mostly short-term construction jobs while the state absorbs ongoing maintenance costs.

Stephanie Thompson, president of Alexander Creek Incorporated, said the Department of Transportation needs to stop deceiving the public about the road's industrial purpose. "DOT's and PS portion of the road is the first 22 miles of a 100-mile industrial corridor," Thompson said. "AIDEA plans to build the remaining 78 miles to access gold mining claims, with Alaska on the hook for at least $600 million in subsidies to benefit foreign mining companies."

Supporters said the road would unlock economic development and public access to 6 million acres of state land. Terry Gorlick, a former business owner who employed hundreds in Alaska, called the project a strategic investment in the state's economic future and resource independence. "Infrastructure unlocks value," Gorlick said. "The West Susitna Access Road provides access to one of the most mineral-rich regions in the state, including gold, copper, critical minerals essential to modern supply chains."

Andrew Traxler, chairman of a local road service area board, said the road is essential for jobs and would increase access for hunting and fishing. "It is kind of sad that so many people outside of the community calling in are trying to kill this project," Traxler said. He noted that 80 percent of Mat-Su Borough firewood already comes from West Susitna and that a timber harvest has been purchased to supply the next 10 years of firewood. During questioning, Traxler said the road would be essential to the prosperity of Port MacKenzie and completion of the railroad spur.

Michael Bowles, a Mat-Su Borough Assembly member speaking on his own behalf, said the borough is open for business and wants the funding. "This is going to bring in jobs," Bowles said. "Every road project has had its opposition, but look at us now."

Representative Allard clarified during testimony that the $95 million represents federal receipts authority, not state general funds that could be redirected to other projects. "This is not money we just give back and then say put somewhere else," Allard said. Co-Chair Schrag later refined the description as "federal authority."

The House Finance Committee took no action on the bill Wednesday. Testimony was limited to two minutes per speaker. Written testimony on the capital budget can be submitted by 5 p.m. April 30 to [email protected]. The committee is scheduled to continue work on the capital budget in coming days.