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The Senate passed its version of the FY2011 Capital Budget today.  The budget funds important infrastructure projects to keep Alaska’s economy moving.  As Co-Chair of the Senate Finance Committee, I was responsible for drafting the budget and presenting it to the Senate.  The Capital Budget appropriates money for one-time expenditures such as road and school construction; and public works infrastructure.  It is one of the most important policy documents the legislature considers, and along with the Operating Budget, is the only bill the legislature is required to pass during session. 

This session I’ve worked actively with colleagues to balance savings and ensure our state’s infrastructure needs are addressed.  Our challenge was to use surplus revenue to advance important statewide projects, while stocking-away funds in the Constitutional Budget Reserve as savings for future years.  The budget totals $2.77 billion including $1 billion in federal funds and $400 million in general obligation bonds for education and research facility construction.  The budget amount is within the recent average of state Capital spending, and addresses remaining needs from last year’s lean budget.      

The Budget includes several items that will benefits Southeast Alaska.  From deferred maintenance to new facilities, this funding will put Alaskans to work and improve the quality of life in our region.  Highlights include…

•$83 million for statewide docks & harbors improvements
•$60 million towards constructing the Alaska Class Ferry
•$39 million for Southeast Alaska Hydro-Electric Construction
•$23 million in port and tourism infrastructure
•$19 million to begin the Public Library Construction Grant Program
•$5 million for upgrades to state-owned hatchery facilities

On top of these projects, this budget will still provide for an estimated $325 million surplus during the next fiscal year.  I’m confident that we’ve addressed the most critical priorities around the state, and look forward to working with my counterparts in the house to move the budget through the legislature this week.

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