Juneau -- Mindful of the state's billion dollar deficit, the Senate Tuesday passed a Capital Budget that funds the state's necessary projects and maximizes federal matching funds. The $132 million general fund Capital Budget passed by a vote of 15-5.

"The Senate has made a conscious effort to put together a responsible budget that minimizes the impact on each community, while working to address our billion dollar shortfall," said Senator John Torgerson, Co-Chair of the Senate Finance Committee.

"This was not an easy budget to write. For the first time, we cut spending in areas that have seen automatic funding for the past few decades," said Torgerson. "We have made a commitment to address the most critical needs in the budget and the state's necessary projects," he said.

While the total Capital Budget is $1.01 billion, the general fund contribution is only $132 million. The bulk of the $1.01 billion capital funds are federal dollars for transportation related projects.

"We worked really hard to get the most return on our dollar," said Senator Dave Donley (R-Anchorage), Chair of the finance subcommittee on the capital budget. "With just $71 million from the general fund, we were able to leverage $756 million in federal dollars for transportation across the state-that equals more than ten times the state's financial commitment," he added.

"Alaskans will soon see significant improvements in our highways, bridges, airports, harbors and ferries in every region of the state," said Donley. "These investments benefit every Alaskan citizen, and nearly every industry in the state."

"Some opponents claim the spending plan shortchanges rural Alaskans, but all they have to do is look at the numbers to see that it isn't true," said Torgerson.

"On average, this budget spends $2,343 per capita on its 464,807 registered voters. The urban communities of Anchorage, Fairbanks, Juneau, Kenai and Mat-Su average $1,058 for spending per voter," Torgerson said. "The rest of the state averages $3,413 per registered rural voter."

The Senate placed a high priority on spending for certain programs such as sanitation, housing, and commerce and economic development. The plan appropriates:

• $76 million for rural and urban sanitation and other environmental projects. This is 100% of the funding level requested.
• $15 million for municipal and unincorporated capital matching grants. This, too, is 100% of the funding level requested. This program provides every municipal and unincorporated community with an annual appropriation for needed projects as determined by each local governing body.
• $15 million for statewide housing programs
• $11 million for commerce and economic development projects

The Senate Capital Budget, Senate Bill 32, will come up for reconsideration Wednesday before moving on to the House for consideration.

Broadcasters note: Audio comments are available on the Majority Actuality line, 1-800-478-6540
= John Torgerson, 46 K = Dave Donley, 16 K