NEWS: Rep’s Gara and Kawasaki Call for an Analysis of the Benefits of Selling the Money-Losing Kodiak Rocket Launch Complex

FOR IMMEDIATE RELEASE
January 21, 2015

JUNEAU – Representative Les Gara (D-Anchorage) and Representative Scott Kawasaki (D-Fairbanks) are asking the Administration of Governor Walker to analyze the benefits of selling the state owned Kodiak Launch Complex.

“With a multi-billion dollar deficit we should put people and education ahead of a state-owned business that has lost $60-million over the past five years,” said Rep. Gara.

The state owned Kodiak Launch Complex is owned and operated by the Alaska Aerospace Corporation, which is a public corporation of the State of Alaska. The complex has sat mostly idle over the last five years, with only two successful launches in that time.

“The state simply can’t afford this boondoggle anymore,” said Rep. Kawasaki. “Instead we really need to focus on priorities that will help us grow the economy and lower the cost of living in Alaska.”

The Kodiak Launch Complex opened in 1998 and sits on 3,700 acres of state-owned land on Kodiak Island.

“Every year supporters of the Kodiak Launch Complex present new plans for reversing this project’s financial losses,” said Rep. Gara. “We can’t run the state’s finances into the ground by annually changing plans that never happen.”

Both Rep. Gara and Rep. Kawasaki are members of the House Finance Committee and they hope the committee will closely scrutinize the financials of the Kodiak Launch Complex in the coming months. 

“We need to promote jobs, and a strong economy, and not jeopardize that by spending millions on money losing state businesses,” said Rep. Kawasaki.

Rep’s Gara and Kawasaki have written Governor Walker to ask him to analyze whether the state will come out ahead financially by selling this facility. They are also asking that current spending on the Complex be lowered to protect the facility from damage while this assessment occurs.

In late December Governor Walker issued an administrative order directing the State to stop all non-obligated spending on the Kodiak Launch Complex.

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