Demonstrating Fiscal Responsibility Gov Palin & Senate Pass Reduced Capital Budget
Wednesday, April 22, 2009
In an unusual reversal of past legislative practice, the recently completed session saw the Legislature and the governor compete to cut projects from the state's capital budget.
The capital budget typically grows while moving through the process, as legislators add support for items relative to their districts.
This year, even as the state's financial picture got brighter, the cuts got deeper. Among the casualties to Juneau was $9.5 million for renovations to the Johnson Youth Center, and the chance at $150 million in federal matching money.
Sen. Stedman, R-Sitka, said the Legislature had no choice, given the budget Governor Palin submitted and the declining price of oil.
"The capital budget was large, a couple of billion dollars, and quite frankly the state couldn't afford it," he said.
The budget was about $2.3 billion. By the time it got through Governor Palin and Senate Finance Committee, it was a half billion dollars lighter.
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