Governor signs capital budget

Gov. Mike Dunleavy signed the state capital budget, in Senate Bill 2002, on July 8, providing money construction, major maintenance and other projects. The bill also reinstitutes funding for programs – including Power Cost Equalization and Alaska Performance Scholarship – that were included in Governor Dunleavy’s budget but were subject to the “reverse sweep,” a move that returns funds to the state’s savings accounts when the legislature fails to appropriate the funds.

However, the governor also vetoed several items in the bill. SB2002, as passed by the Alaska Legislature, included a number of projects of local, community or legislative interest that the state simply cannot fund under its limited financial resources, Dunleavy said. As a result, the governor reduced the final capital budget by $34.7 M through his line-item veto authority.

Key items funded in SB 2002:

$73M to Federal Highway and Aviation Match, which secures $877.2 million in Federal funds

$12M to Village Safe Water and Wastewater Projects, securing over $52M in Federal funds

$2.54M to Hiland Mountain Women’s Mental Health Unit

$2M in AIDEA receipts for Northwest Arctic Borough school construction and major maintenance

$680,200 to Electronic Visit Verification System

$2.5M to Arctic Strategic Transportation and Resources

$1.5M to AHFC Rental Assistance for Victims- Empowering Choice Housing Program

$3.6M to AHFC Homeless Assistance

$1.75M to AHFC Senior Citizen Housing

$250,000 to Inter-Island Ferry Authority

$13.5M to Alaska Marine Highway System vessel overhaul, annual certification, and shoreside facilities rehabilitation

$1.6M to Harbor Grant Program

The governor is still considering HB 2001, a bill passed by the Legislature that restores funding cut earlier from the state operating budget by the governor.

“There is no doubt that this budget conversation has started a robust and long overdue discussion among Alaskans that continues to this very day,” Dunleavy said in a statement.

“ I emphatically say that budget changes are not meant to harm Alaska or Alaskans, but represent a sincere attempt to tackle these issues head-on and finally allow Alaska to turn the corner. With that said, these reductions and their impact to services and programs has led to tremendous feedback from Alaskans, legislators, and others. As a result, I have taken that feedback into account in the budget presented today. Let me be clear, this input from Alaskans has been critical in my understanding of how important a number of these programs and services are.”