Parnell Unveils Budget Cuts

June 29, 2011|By Ted Land | Channel 2 News

ANCHORAGE, Alaska — Gov. Sean Parnell announced $412 million in budget vetoes, Wednesday afternoon.

“With these vetoes, you could say Alaska’s budget is ‘at fightin’ weight,’” Parnell said in a prepared statement. “Living within our means will keep Alaska fit and strong.”

The cuts were mostly made to the capital spending plan, which includes money for roads, repairs, construction and equipment.

The $3.2 billion capital budget was trimmed to $2.8 billion, which includes more than $1 billion in energy projects.

Millions will go to the Susitna hydro project, and similar projects in Ketchikan and Sitka.

There’s also a multi-million-dollar chunk for renewable energy grants, home weatherization, and a geothermal project at Mt. Spurr.

$200 million will advance planning work for an in-state natural gas pipeline.

More than $1 billion will go to highway and airport projects throughout the state. Another $114 million will go to fix up state buildings, whose repairs have been deferred over the years.

$30 million each goes to the Port of Anchorage expansion and the Point MacKenzie rail extension project-- $7.5 million less than the Port of Anchorage requested.

$60 million will build a new state ferry.

Another $400 million will go toward scholarships for high school students who perform well.

The spending, along with vetoes, leaves the state with more than $15 billion in various savings accounts, the governor said.

Parnell cited declining oil production, nationwide economic uncertainty, and rising pension debt payments as reasons for his cuts.

Anchorage-Area Projects Included in the Budget:

$4.2 million for the Chugiak Senior Center

Roughly $1.4 million for digital video systems in Anchorage Police Dept. vehicles

$6 million to upgrade Project 80s buildings

$2.1 million for the Service High School field

$6.2 million for a new Blood Bank of Alaska building

$3.1 million for the Covenant House

$4.2 million for the McLaughlin Youth Center

$34 million for a new UAA sports arena

Anchorage-Area Projects Cut from the budget:

$20 million for an Alaska Native Tribal Health Consortium Anchorage long term care facility

$1.5 million for Anchorage Football Stadium improvements

$1.5 million for Muldoon Community Park

$1 million for Anchorage neighborhood parks renovation

$800,000 for RuralCAP Child Development Center

$100,000 for youth gold program at Russian Jack Springs Park

Roughly $6.5 million for roof replacement of Dept. of Education and Early Development buildings

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