House Approves $1.8 Billion Capital Budget

(Juneau) - The Alaska State House today passed Senate Bill (SB) 75, the Fiscal Year (FY) 2010 Capital Budget. The House Finance Committee reduced the Governor's original budget bill by more than $200 million in general funds, and $470 million in total funds.

This capital budget reflects the conscientious effort to hold the line on capital spending on the part of the Legislature.
~ Rep. Bill Stoltze

"This capital budget reflects the conscientious effort to hold the line on capital spending on the part of the Legislature," House Finance Committee Co-Chair Bill Stoltze, R-Chugiak/Mat-Su, said. "We focused on funding projects with federal matching funds; using federal stimulus surface transportation, transit and aviation funds; using cruise ship 'head tax' funds for cruise ship passenger-related projects; and, most importantly, not adding to the Governor's proposed budget, but reducing it by over $471 million."

The bill passed the House by a vote of 26 to 13.

The capital spending plan, though thinner than prior years, still represents a great compromise between advancing the projects our communities have asked for and recognizing that we have to keep a prudent eye toward a world oil price recovery.
~ Rep. Mike Chenault

The House committee substitute for SB 75 carries an insurance policy in case oil prices continue to stay low. If the funds appropriated in FY 2009 are not available, the deficit will be filled first by the Statutory Budget Reserve Fund.

"The capital spending plan, though thinner than prior years, still represents a great compromise between advancing the projects our communities have asked for and recognizing that we have to keep a prudent eye toward a world oil price recovery," House Speaker Mike Chenault, R-Nikiski, said. "It is important to remember that this spending bill is our annual statewide stimulus plan: it keeps Alaskans working and our communities evolving."

The capital budget appropriates money for one-time expenditures, traditionally public works and state asset maintenance projects. SB 75 appropriates $176 million in State general funds, $1.3 billion in federal funds – including federal economic stimulus funds - and $321 million in other funds.

SB 75 will now be returned to the State Senate for a concurrence vote.