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Senate Passes Balanced Capital Budget Based on Size and Scope of Finance Co-Chairs’ Agreement
JUNEAU—Today, the Alaska Senate passed Senate Bill 187, otherwise known as the capital budget. The budget totals $450 million of general fund dollars and is carefully crafted to promote infrastructure projects throughout the state, address the state’s backlog of deferred maintenance, support statewide weatherization, and increase resources for food security, among other priorities.
“For many years, our capital budget has been bare bones without significant investment in infrastructure and deferred maintenance projects. With the slight uptick in revenue because of higher oil prices and prudent budgeting, the Senate was able to prioritize the state’s biggest capital needs within our financial capacity,” said Senator Lyman Hoffman (D-Bethel), co-chair of Senate Finance and developer of the Senate capital budget.
The Senate capital budget highlights include:
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$68 million to K-12 and the University of Alaska for deferred maintenance:
- $9 million for K-12 school construction for the top 2 schools on the school construction list, Newtok and Minto, and design and foundation funds for Nelson Island;
- $38 million for school projects 1-15 on the major maintenance list, including two projects for Mt. Edgecumbe High School;
- $26.5 million for the University of Alaska for projects 1-6 on their major maintenance list.
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$30 million for professional housing and weatherization.
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$15 million for life and health safety.
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$9.7 million to leverage federal grant funding.
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$8 million to the Department of Transportation and Public Facilities for the state’s federal harbor matching funds, and additional resources if a state-owned harbor needs emergency fixes to avoid liabilities.
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$7.5 million for food security.
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$50 million for infrastructure projects across the state.
"The Senate's passage of the capital budget underscores our commitment to addressing critical infrastructure needs across Alaska. This budget reflects a balanced approach, prioritizing essential projects while remaining within our fiscal means,” said Senate President Gary Stevens (R-Kodiak). “I commend the collaborative efforts of my colleagues in the Senate and look forward to working with the House to ensure the timely passage of both a balanced operating and capital budget for the benefit of all Alaskans."
Last month, the House and Senate Finance Co-Chairs, in a collaborative effort, agreed upon a budget schedule with an exchange of the operating and capital budgets on April 12. With the passage of the Capital Budget, the Senate and House remain on schedule. The capital budget remains within the size and scope that was agreed upon by Finance co-chairs earlier this month.
Senate Bill 187 will be exchanged simultaneously with House Bill 268, the state operating budget. The Senate intends to begin hearings on the House’s version of the operating budget immediately to ensure passage from the Senate in early May.
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