Finance Co-Chairs Say No “Discretionary Spending” In Capital Budget

The two legislators in charge of crafting the Alaska’s capital budget say with oil prices low and the state facing at least a $3.5 billion deficit there should be no “discretionary spending” this year.

On Saturday Senate Finance Committee Co-Chair Senator Anna MacKinnon and House Fiance Committee Co-Chair Representative Steve Thompson shared their thoughts on the situation in a memo distributed to all state legislators.

In the memo the two say:

“As the Co-chairs of the Capital Budget in our respective bodies, we are recommending the legislature forgo discretionary spending for the FY2017 Capital Budget. With your support, we will manage expectations of our communities.”

According to MacKinnon’s office a similar memo was issued last year.  They also said the memo means they are recommending no individual district requests are likely to make into the capital budget this year.  That doesn’t mean there will be no capital budget at all, however, as the memo also make clear the Co-Chairs intend to continue consider funding projects that leverage federal money into the state or those that are deemed major health, life, and safety needs.

Here is the memo:

ALASKA STATE LEGISLATURE

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1 Comment on "Finance Co-Chairs Say No “Discretionary Spending” In Capital Budget"

  1. And what about those billions previously budgeted but not yet obligated? Any intent to call that money back or is that money intended now to be the Keynesian economics stimulus they think can forestall the impact of the mess they created by spending beyond revenues for years?
    For example you will know in Anchorage if they actually build that new “double diamond” overpass where Muldoon crosses the Glenn Highway (With how much of the cost contributed by the new Tikahtnu Mall – the main beneficiary?). When you see that new overpass you will know how serious these folks are about cutting versus manipulating.

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