News from Senator Tim Kelly

Alaska State Legislature

Wendy Lindskoog, Senate Majority Press Secretary
State Capitol
Juneau, AK 99801-1182
Phone: 907/465-4582
http://www.akrepublicans.org
Broadcast Actualities: 800/478-6540

For Immediate Release: March 7, 1997 Contact: Senator Tim Kelly 907/465-3822

Kelly Proposes Fund To Repair Alaska’s Public Facilities

Juneau -- To solve Alaska’s long-term maintenance problems, Senator Tim Kelly (R-Anchorage) introduced a resolution to amend the state constitution and create a Public Facilities Capital Fund.

"The effort to address Alaska’s increasing deferred maintenance problem is long overdue," said Senator Kelly, sponsor of SJR 21. "In recent years, capital budgets of approximately $100 million have not been enough to meet the state’s basic maintenance needs. Creating this fund would provide the additional money to remedy these needs."

Kelly noted that with voter approval, an appropriation from the Constitutional Budget Reserve would capitalize the new fund. The interest income from that fund would then serve to finance approved projects.

"The Constitutional Budget Reserve is worth nearly three billion dollars," said Kelly. "Only a small portion of this money is needed to alter the way public works projects are funded so we can invest in Alaska’s future today."

Facilities serviced by this fund would include roads and highways, schools, airports, water and sewer systems, ports and harbors, correctional facilities, and other public buildings. Funding for eligible projects within the program would be available for design, acquisition, construction, and major maintenance -- not for operating expenses and routine maintenance activities.

The Public Facilities Capital Fund would:

• Be managed by the Alaska Permanent Fund Corporation, to produce income which would fund basic public works projects.
• Pay principal and interest on state bonds for projects approved for funding under the program.
• Require local matching funds of municipalities and school districts.
• Have voters approve the debt obligation in a general election.

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