JUNEAU — The Alaska Senate on Tuesday unanimously voted to advance the capital budget, emphasizing funding for school maintenance.
The $2.9 billion capital budget is designated for infrastructure and maintenance projects across the state, with the majority of funding originating from federal sources.
Governor Mike Dunleavy proposed an initial capital budget in December costing over $280 million to the state treasury.
However, the Senate’s version of the capital budget is significantly reduced, costing the state only $162 million.
Sitka Republican Sen. Bert Stedman, who manages the Senate’s capital budget, commented that this spending plan represents the smallest since COVID-19 impacted Alaska five years ago.
He noted that communities across Alaska requested $3.2 billion in projects, but with a dire fiscal outlook, many requests were denied.
“Communities will have to wait a year,” Stedman said.
The capital budget includes $26 million for the maintenance of Alaska ferries and $6 million allocated for renewable energy initiatives.
A primary focus of the Senate’s capital budget is school maintenance.
“Regardless of our financial condition, we need to educate our children,” Stedman stated before the Senate’s final vote.
“They need to be in a safe environment, and we need to give the next generation the best opportunity we possibly can.”
The Senate plans to direct $19 million to address Alaska’s deferred maintenance backlog at schools and an additional $5 million for the University of Alaska.
An investigation published by KYUK and ProPublica in March highlighted the effects of neglecting state-owned schools in predominantly Alaska Native communities.
Last year, the Legislature funded 26 projects on the state’s major maintenance list for schools, costing $63 million in total.
This year, the Senate proposes funding the first five school projects, which include replacing fire protection systems at schools in the Northwest Arctic Borough due to significant safety risks, among other initiatives.
“We wish we could have done more,” Stedman expressed.
Typically, around $30 million would be allocated for University of Alaska maintenance to help tackle its $1.5 billion maintenance backlog, and Stedman cautioned that Alaska’s financial outlook might remain bleak in the forthcoming years.
The Senate unanimously approved the capital budget on Tuesday, with no proposed amendments from senators.
Senate Minority Leader Mike Shower, a Wasilla Republican, deemed the spending plan “fair” and “reasonable,” lauding the budget’s crafting amid a challenging fiscal landscape.
However, the Senate rejected sixteen projects proposed by Dunleavy, which amounted to $49 million.
These rejected projects included $2.5 million for a new firefighting aircraft, $2.5 million designated for the contentious West Susitna Access Road, and $1 million intended for a cemetery in Eagle River.
Jeff Turner, a spokesperson for the governor’s office, stated Monday that Dunleavy disapproved of the projects omitted from the Senate’s draft capital budget and was informed of the decisions.
Stedman explained on the Senate floor that the trimmed-down spending plan repurposes unused funds from stalled projects for other initiatives this year.
Around $47 million will be reappropriated from paused Department of Transportation projects, including the long-sought but controversial Juneau Access Project and $10 million for a planned deepwater port in Nome.
Typically, the capital budget encompasses infrastructure projects vital for lawmakers in their respective districts, but this year takes a different approach.
With a strict fiscal outlook, the Senate proposes allocating approximately $88 million toward projects considered essential statewide.
These statewide needs encompass $500,000 for body armor for Alaska State Troopers, maintenance on the Dalton Highway, and renewable energy projects in various locations including Pelican, Naknek, Skagway, Kwethluk, Quinhagak, and Nenana.
The capital budget will now move on to the House for further consideration.
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