Senate examines capital budget this week

This week, the Senate's Finance Committee is taking a first real crack at the capital budget, and it's unlikely that the total price tag will be capped as Gov. Sean Parnell asked.

He submitted a budget drawing about $300 million from the general fund, and asked lawmakers to keep the total - once they've added projects - to around $400 million.

Some senators balked. After all, they left nearly $500 million out last year with oil prices in the tank. The cuts included the kind of work that puts people to work, and with Alaska starting to feel a delayed economic hit. Many are hoping more capital spending this year will infuse the economy, taking the edge off slow-downs.

It's also an election year, and lawmakers running for re-election would like to take home results showing voters how effective they've been in Juneau.

Also likely to be wrapped into the bigger capital budget is $100 million Parnell is seeking to address a backlog in deferred maintenance projects. He'd proposed the spending separately, hoping to gain legislative approval by March in order to get the projects out to bid this summer.

Sen. Lyman Hoffman, D-Bethel and Finance co-chairman, suggested this year's capital budget will be healthy, and with good reason.

"Our economy is slipping," he said.

The capital budget puts people to work projects large and small, from roads and schools to airports and docks.

Sen. Bert Stedman, R-Sitka, co-chairs the committee. He said a roughly $300 million energy-related spending plan submitted by the Resources Committee - of which he is a member - would be considered as a stand-alone matter, as would some education funding.

Hoffman noted clear support for at least some of the energy recommendations - about $50 million to the Alaska Energy Authority's renewable energy grant program. He's also seeking feedback from the Alaska Housing Finance Corp. on whether current spending on home energy efficiency programs are getting enough money.

Capital budget hearings continue through this week, with public testimony from around the state scheduled for 5 p.m. Thursday, March 18. The committee has a Saturday morning budget hearing set as well.