Parnell announces final 2011 budget

Governor Sean Parnell signed into law a two point eight billion dollar state budget for capital spending this  morning.

The governor reduced the original operating and capital budgets by over $300 million in line-item vetoes.

The capital budget includes over $451 million for K through 12 education and university projects, $ 88 million   for water and sewer projects and $77 million for renewable and other energy projects as well as over a billion dollars for transportation and aviation projects.

The governor vetoed money associated with Denali KidCare expansion as he says he opposes expanding eligibility and funding for publicly funded abortions.  He told reporters that he only learned of that public funding AFTER the legislative session was over.

The budget passed by legislators earlier this year included some funds to build a new Sunshine Health Clinic in Willow. Parnell vetoed that line item.  Parnell also vetoed $3 million  in the substandard bridge and road repair category for the Mat Su Borough.   $1 million is still in the budget for arterial road and bridge improvements.

Over $100,000 remains in the budget for Petersville Road repairs.  Funding for the MacKenzie rail extension project was cut in half.  The Alaska Energy Authorities renewable energy Round 3 grants was cut in half –from $50 million to $25 million.

The roof replacement funds for Trapper Creek Elementary remain in place.

Parnell says he balanced the needs of local interests and state interests and that his line item vetoes are projects to be deferred to a time with better state economic growth.