Juneau lawmakers hopeful city can weather pared-down state capital budget

April 3, 2014
The Legislative Council has been funding renovations and seismic upgrades to the Alaska Capitol outside the state capital budget. (Photo by Skip Gray/Gavel Alaska)

The proposed state capital budget submitted by Gov. Bill Walker on Monday includes just four projects for Juneau.

Three of them are federally funded street improvements. The fourth – a little more than $3 million for wastewater treatment upgrades – is the only project in either of Juneau’s two House districts to receive state general fund money.

The budget reflects Alaska’s new reality, with lower-than-expected oil prices leading to an estimated $3.5 billion deficit next fiscal year. Oil and gas taxes make up about 90 percent of Alaska’s unrestricted general fund revenue.

Juneau projects in the proposed capital budget

House District 33 (Downtown Juneau, Douglas, Haines, Skagway, Gustavus):

  • Alaska Marine Highway System, Gustavus Ferry Terminal Modifications – $3.5 million
  • Gustavus – Repair or Replace Rink Creek Bridge – $400,000

Juneau Areawide projects:

  • Water Treatment Improvements, Phase II – $3.1 million
  • Egan Drive/Riverside Drive Intersection Improvements – $1 million
  • Glacier Highway Rehabilitation and Reconstruction – $4 million
  • Industrial Boulevard Widening and Sidewalks – $3 million
“God, you know, it’s in the toilet,” Juneau Sen. Dennis Egan says of low oil prices.

Juneau Rep. Cathy Muñoz – who’s a member of the House Finance Committee – says this will be a difficult financial year for the state.

“The price for oil today is below $60 a barrel,” Muñoz says. “So we can expect some real tightening of not only the capital budget, but the operating budget.”

But Muñoz says things could be worse. A number of projects are underway in the capital city after being funded in recent years. That includes construction of the new State Libraries, Archives and Museum building downtown and renovations to the Douglas Island Building, where about 200 state employees work.

“So we’re looking at just, in the projects that have already been approved, we’re looking at work for the next three to five years,” she says.

Egan says that’s not to mention work being funded outside the state capital budget. He sits on the Legislative Council, a joint House-Senate committee that manages the legislature’s internal budget and support staff, which has been funding ongoing repairs to the state Capitol.

“I just got another $27 million to finish a renovation and seismic retrofit,” Egan says.

Gov. Walker submitted the capital budget Monday, along with former Gov. Sean Parnell’s operating budget, which the new governor has not endorsed.

The Walker administration plans to submit revised versions of both budgets during the upcoming legislative session. Budget Director Pat Pitney says any add-ons will be closely scrutinized.

The Associated Press contributed to this report.

Sign up for The Signal

Top Alaska stories delivered to your inbox every week

Site notifications
Update notification options
Subscribe to notifications