Press Release: House Capital Budget Begins Deferred Maintenance Fix

Alaska State Legislature
News from the House Majority

Jerry Ritter, House Majority Press Secretary
State Capitol
Juneau, AK 99801
Phone: (907) 465-3804
web site: http://www.akrepublicans.org
Actuality line: 1-800-478-6540

Safe Schools for Rural Alaska's Children Tops List

House Capital Budget Begins Deferred Maintenance Fix

For Immediate Release May 11, 1998 Contact: Rep. Mark Hanley at (907) 465-4939.

Juneau -- The Alaska House of Representatives today passed a state capital budget which meets the Republican-led Majority's goal to hold the line on general fund spending while addressing the state's most pressing capital projects needs. The vote to approve Senate Bill 231 was 29-7.

The total capital budget includes an AHFC bonding package which includes money to fix the state's immediate deferred maintenance requirements, including $54 million for 60 rural school maintenance projects and the balance for construction.

"The Deferred Maintenance Task Force identified approximately $1.5 billion in deferred maintenance needs, which we had hoped to pay for using the Constitutional Budget Reserve," said Representative Eldon Mulder (R-Anchorage), Vice Chair of the House Finance Committee and Co-Chair of the Deferred Maintenance Task Force. "However, the drop in oil prices meant we had to go back to the drawing board. With interest rates low, it's a good time to use AHFC bonds to pay for our most pressing needs in this area," Mulder said.

The Capital Budget appropriates $85.4 million dollars in general funds, $53.6 million in Alaska Housing Finance Corporation funds, and $860 million in federal and other fund, bringing the total value of capital projects to almost $1 billion. If AHFC bonding and school debt reimbursement contained in Senate Bill 11 is included, the total exceeds $1.5 billion.

"A close look at this capital budget shows that the charge that the Majority doesn't care about rural Alaska is a lie," said Representative Mark Hanley, Co-Chair of the House Finance Committee. "In addition to the $54 million for rural school maintenance and over $30 million for 8 major rural school construction projects, this budget contains over $31 million dollars for Village Safe Water Projects. These projects will provide badly needed water and sewer improvements in 32 communities, many of which have documented pollution problems or conditions severe enough for disease to occur.

"The capital budget also fully funds the $1.7 million supplemental request to the power Cost Equalization Program, which helps keep rural power costs under control. Plus there are capital matching grants to all unincorporated communities for local priorities, most of which will go for deferred maintenance," said Representative Gene Therriault (R-Fairbanks), Co-Chair of the House Finance Committee. "In addition, there is $3.2 million for the upgrade or replacement of above ground storage tank facilities throughout rural Alaska," Hanley said.

The capital budget also includes:

More than $730 million in transportation funding including:

$384 million for roads and highways, with

$224 million for National Highway System projects, up from $99 million in FY 98;

$95 million for Community Transportation Program projects, up from $52 million in FY 98;

$29 million for other statewide surface transportation projects;

$24 million for Anchorage Metropolitan Area Transportation Study projects; and

$14 million in Trails and Recreational Access projects.

$314 million for aviation projects, including

$179 million for the Anchorage International Airport Expansion;

$103 million for rural airports;

$32 million for other Anchorage and Fairbanks International Airport projects

$32 million for federally funded demonstration projects, including funds for the

Ketchikan to Gravina Island bridge;

Ketchikan shipyard and drydock; and

Southeast feeder ferry acquisitions

The $199.6 million AHFC bonding budget includes:

$83 million for schools, including

$53 million for rural school deferred maintenance; and

$30 million for new schools

$50 for University deferred maintenance, including $9.5 million for the university library
$28.5 million for Harbor and Armory projects, matching federal and municipal dollars, including

$14.5 million state funds to bring the Seward, Kodiak and Homer harbors to a condition where the cities will accept transfer from the State.

$13.4 million state funds to make major improvements to 6 harbors used heavily by commercial fisheries (Chignik, King Cove, Unalaska, St Paul, St George, and Sand Point)

$3.6 million to leverage federal dollars for the Nome and Juneau armories

$12.5 million for health clinic and juvenile detention facilities
$4 million for statewide ADA compliance projects
$31 million for other state buildings and maintenance

# # #