Senate adopts austere capital budget

Update | 10:34 a.m. Monday

The House Finance Committee plans to take public testimony on the capital budget beginning at 6 p.m. Monday.

An earlier version of this update misstated when the committee plans to take public testimony. The time has been corrected. 

Original story | 9:45 p.m. Saturday

FY2007-2017 UGF Capital budgets
Unrestricted general fund spending on Alaska’s capital budget. Fiscal year 2017 is based on Senate’s capital budget bill as of May 14, 2016. (Graphic by Jeremy Hsieh/KTOO)

The Alaska Senate passed the state’s $1.6 billion capital budget Saturday. The big-ticket spending plan now goes to the House for consideration.

The capital budget includes items from highway construction in Haines worth $30 million, to airport upgrades in Anchorage worth $36.8 million, to a K-12 school in Kachemak Selo worth $10.9 million. About 85 percent of the money in the capital budget comes from the federal government.

Overall, the Senate’s capital budget is comparable to the one passed last year. But the portion of that spending plan funded with money state lawmakers’ readily control is very small, historically speaking.

The bill calls for only $77.5 million of state money in unrestricted general funds. As recently as 2013, that slice of the capital budget was more than $2 billion – almost 27 times bigger.

Sen. Anna MacKinnon, R- Anchorage on the floor of the Senate during debate about the state operating budget, March 14, 2016. (Photo by Skip Gray/360 North)
Sen. Anna MacKinnon, R-Eagle River, on the Senate floor in March . (Photo by Skip Gray/360 North)

Anna MacKinnon, an Eagle River Republican who chairs the Senate Finance Committee, told her colleagues a lot of hard work went into that austerity.

“It’s tough times that requires tough decisions and the Senate has risen to that occasion,” she said. “We wish there was more money to spend and turn in our economy, and maybe if we have some other pieces of legislation successfully passed, that might be possible in a subsequent year.”

Before the 16-4 vote, MacKinnon also called out the credit rating agencies; their assessments of Alaska’s ability to repay its debts affect how expensive borrowing is in the future.

“The credit raters nationally are watching us. Several days ago, we were put on that negative watch again,” she said. “Mr. President, they’re waiting for action, and we are trying to provide that action by doing what is responsible.”

The votes against the capital budget came from the Democratic caucus. Its members had offered five floor amendments — all failed.

The bulk of Saturday’s debate rehashed a committee debate from earlier in the week — and in 2015 — over funding for a school in Kivalina. The school’s funding, or lack thereof, may become a new legal flashpoint in the Kasayulie case, which identified illegal disparities in rural education funding.

Jeremy Hsieh

Local News Reporter, KTOO

I dig into questions about the forces and institutions that shape Juneau, big and small, delightful and outrageous. What stirs you up about how Juneau is built and how the city works?

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