Alaska's capital budget tops $3 billion

On Friday, James Armstrong, a House staffer largely responsible for crafting representatives' additions to the state capital budget, sunk into a Finance Committee chair, blurry-eyed.

He'd received the spending plan at 3 a.m. and looked like he'd been scrutinizing line after line in the hours since. A yawn escaped midsentence as he rattled off the major changes from a version passed by the Senate the day before.

And by Sunday night, the hefty 176-page capital budget had acquired additional hours of toil, staffers burning the midnight oil. And, had grown from about $1.9 billion pitched by the governor; up $855 million in the Senate; and up again, about $364 million, in the hands of the House. Ultimately, the $3.059 billion document earned stamps of approval from both bodies, and without much opposition to speak of.

Who could fight it? Yes, the state is spending a lot, despite Gov. Sean Parnell's wishes. Yes, the state could, as he said, be running in the red within the next decade.

But the budget's first version, artfully crafted in the distinguished fifth-floor Senate Finance offices, had something for just about everyone. Not just little things, either, but projects either long sought or hard won, important to constituents.

"It is a bigger budget than I am confident presenting, but one I will be voting for," Rep. Bill Stoltze, R-Chugiak and the Finance co-chairman responsible for the capital budget, said on the House floor. "It is one that reflects the needs of Alaskans ... We've all submitted projects, myself included. We all have collective responsibility because we all participated."

That could make life hard for Parnell as he wrestles with which to veto. He's advocated spending in small pieces, where locals can take on the construction jobs, providing a boost without overwhelming workforces. He's also pushed for projects that pave the way for private sector investment -- roads that open up resource areas, for example. Also high on his list is work that enhances life for families and public safety -- fire station upgrades and library bonuses.

At the last minute Sunday night before the House voted, they tacked on $75.8 million for a state crime lab, sought by Parnell as part of his hallmark initiative against domestic violence. They also added $126.2 million for a school construction package that will go before voters this fall. The day before, a House committee slid in $750,000 for an independent study of the proposed Pebble Mine near Bristol Bay, and $89.3 million to settle the Carlson lawsuit. Grand total? Just over $3.1 billion, up from a $2.8 billion budget passed over by the Senate.

House Speaker Mike Chenault, R-Nikiski, hinted late last week that he wasn't sure how Parnell would trim from those sorts of projects, which respond to the governor's own priorities.

But speaking before the state's GOP convention in Juneau Friday morning, Parnell condemned the capital budget as a spending spree and warned of unsustainable outlays that could put the state in a tough spot. New projects might be one-time items, but maintenance and energy bills and the upkeep for years to come could bloat the state's operating budget, already growing at what lawmakers universally say is unacceptable and alarming rates.

Friday, Parnell said he wasn't sure just what he may veto, but hinted some red lines would be coming.

"I am very concerned that we not spend everything in sight, because across the next 10 years it's quite possible we could be back in the red again," he said. "I think it's prudent to save more and spend less."

For now, with savings expected to reach $12 billion soon, the state has some cash to throw around.

For those House members without direct input, the Senate version left a little wiggle room -- several hundred million. Professing a desire to be equitable to majority and minority lawmakers, Stoltze made an executive decision to allow each representative to add $500,000 worth of projects in their home districts -- a little something to boost the economy or to return to voters, arms extended, about the time campaign season kicks in.