News from the Senate Majority

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

Legislature’s Proposed Capital Budget Meets $100 Million Spending Target -- Protects Rural Alaska

For Immediate Release: May 5, 1997 Contact: Senator Bert Sharp 907/465-3004

Juneau -- The Republican-led Majority’s proposed fiscal year 98 Capital Budget meets the Majority’s general fund spending target of $100 million. The bill, scheduled to be on the Senate Floor Tuesday, places high priority on rural Alaska projects and addresses spending priorities statewide.

"I am disappointed that this governor continues to budget by press release rather than by rolling up his sleeves and getting involved with the day to day challenge of reducing state spending to close Alaska’s fiscal gap," said Senator Bert Sharp, Co-Chair Senate Finance, referring to a Sunday Knowles’ press release.

The FY 98 capital budget is designed to secure and optimize federal and non-state matching fund sources. "A lot of hard work has gone into creating a budget that is fiscally responsible and captures available federal funds. This budget is proof we can meet our targeted capital spending goal of $100 million while responsibly addressing the state’s necessary projects," Sharp said.

In his press release, Governor Knowles claimed that the Majority’s capital budget is a product of a flawed public process.

"The fact that Knowles submitted his capital budget two and one-half months late from the statutory deadline of December 15 is flawed," Sharp said. "For this reason we passed Senate Bill 136 making the current law explicit that the Governor must present all three of his required budget bills on December 15 of each year -- an operating budget bill, a capital budget bill, and a mental health program operating/capital budget bill."

"Not only did the Governor shorten the time the Legislature and public had available to review his proposal, he has revised it at least four times and was still adding spending requests as late as May 2. The governor’s budget has been a moving target," Sharp said.

Senator Drue Pearce, Co-Chair Senate Finance, noted that Knowles promised Alaskans more than $150 million in capital projects when he knew the Majority’s Five-Year Plan spending target was $100 million. "The Governor’s budget does not balance. He spends every penny on the table and has made no effort toward honest dialogue." Pearce said.

"Knowles claimed we unfairly targeted rural Alaska for substantial cuts," Pearce said. "It’s an outrage for the Governor to say we’ve hurt rural Alaska when three rural Senate Districts are receiving 25 percent of the total capital budget. The residents of Anchorage, who represent nearly half of the state’s population, receive only $63 million dollars, or only about 12 percent of capital funding."

Pearce and Sharp emphasized that the majority is trying to narrow the state’s deficit spending while the governor continues to exacerbate the problem.

"The capital budget maximizes the things we can do with $100 million in general funds. Although it represents significant reductions from the total number of projects proposed, the budget meets our long-range goal to close Alaska’s fiscal gap while ensuring that necessary statewide projects are addressed to every extent possible using the limited resources available," Sharp said.

The Senate’s version of the capital budget:

"It is popular to say yes to increased spending. In Alaska today, however, we must not allow more spending until Alaskans are willing to be taxed. Spending restraint minimizes the need to tax more and protects the Permanent Fund," said Sharp.

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Broadcast Note: Radio Actualities are available by calling 800/478-6540.
= Bert Sharp = Bert Sharp = Drue Pearce