Senate restores money for natural gas pipeline projects

March 27, 2010

Karen Rehfeld with the Office of Management and Budget says Gov. Sean Parnell's office is looking forward to working with the Legislature on a budget compromise. (Daniel Hernandez/KTUU-DT)

by Ted Land
Friday, March 26, 2010

JUNEAU, Alaska -- Gov. Sean Parnell is pleased to see a commitment from the state Senate to fund natural gas pipeline work Friday, as the Senate Finance Committee restored millions of dollars that were left out of the House version of the operating budget.

The money would fund the in-state gas development team, and it would help pay for work on a proposed large-diameter gas line. That work has to be done in order to fulfill the Alaska Gasline Inducement Act contract.

The House Finance Committee provided 30 percent of what Parnell requested in its version of the operating budget, with representatives leading the effort wanting to wait until there are more solid plans for a gas line before committing money.

Parnell told reporters Thursday he was concerned the operating budget did not contain enough money for gas line work, but the Senate Finance Committee added most of the money back into the budget Friday morning -- $15.9 million.

"The starting point was the governor's budget, and I think we submitted a very reasonable and responsible budget," said Karen Rehfeld with the Office of Management and Budget. "And the Legislature has made some refinements to that, and we're looking forward to working with them for the end product."

"The final number in the operating budget that will be put on the governor's desk will be somewhere between the full funding, what the Senate has, and the roughly 30 percent funding that the House has," said Sen. Bert Stedman.

The challenge in the next few weeks will be for the House and Senate to sit down and work out the difference before sending a final version to the governor's desk.

Contact Ted Land at tland@ktuu.com

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