Borough officials are disappointed with the borough’s share out of the $1.8 billion State capital budget for fiscal year 2010. The budget was passed on Sunday, the last day of the 26th Legislature. The borough receives $32 million for state projects, but less than $14 million for borough capital projects.

After several years in a row of surplus budgets the state faced a large deficit, because of declines in oil prices and a global economic decline, say legislators. 

House Finance Committee co-chair Bill Stoltze said that the capital budget reflects a conscientious effort to hold the line on capital spending on the part of the legislature. Senate President Gary Stevens added that the legislature had to produce a bare bones capital budget while still providing needed services to Alaskans without drawing down the state’s reserves more than is absolutely necessary.

Senate Finance Committee Co-Chairman Senator Bert Stedman said the state was fortunate to be the recipient of more than $800 million in federal economic stimulus funds, which helped soften the blow delivered by the strained economic times.

At a hearing in Juneau last week, borough manager John Duffy expressed his dismay that the state did not shell out funds for road improvements of seven roads in the Wasilla-Palmer area. Mat-Su voters had voted for a road bond worth $15 million if the state would appropriate $35 million to fix these roads. Duffy took exception to the low capital budget for the fastest growing area in the state.

The only borough projects funded are water pipes for the subdivision Garden Terrace at $356,000 and $13 million for the widening of Seward Meridian Road. The borough received $32 million for state projects including funds for the new Goose Creek Correctional Center, Susitna Valley High School traffic safety, the Willow airport master plan, 
Parks Highway milepost 72 to 83 road repair. ion.

Story by Diana Haecker