Governor cuts $412 million out of state budget

Governor Parnell has met his goal of cutting over $400 million out of the state’s capital budget.  He introduced his final budget cuts today (wed).

The operating budget growth was limited to just below 3%.

The legislature passed a $3.2 billion dollar budget, which Parnell cut to $2.8 billion.

Infrastructure projects and energy projects total $2 billion.  65.7 million of that amount is for the Susitna Dam. Other hydro electric projects include a Ketchikan project, a 28.5 million dollar project at Blue Lake in Sitka and 10 million dollars to hydro projects in Southwest Alaska.

A few other highlights in the budget that affect the upper valley – the $420,000 for the Sunshine Community Health Clinic construction in Willow stayed in the budget; the area fire services and road service areas set to receive $20,000 and $30,000, respectively, kept their funding.    The $10.7 million for the Talkeetna Airport Improvements stayed in the budget,.  The $750,000 for the wood fired boiler at Su Valley High School stayed in the budget, as well as biomass projects at Kenny Lake school and other locations around the state.

Parnell cut $7.5 million from the Port Mackenzie Rail project.  Millions were cut from the home weatherization program through AHFC. Although he touts there is $12 million in the budget for Mt Spurr Geothermal he doesn’t mention that he cut $6 million from that project.

Parnell said that given the uncertainty in the national economy and declining oil production, he felt it was important to impose a greater fiscal discipline over the state’s checkbook.