House committees plan hearings on energy projects

$12 BILLION: But they're still locking horns on capital budget.

By BECKY BOHRER
The Associated Press
• Published November 06, 2011

  • 0 comments

JUNEAU -- The Alaska Legislature passed a $12 billion state operating package Friday but the vote was overshadowed by the continued impasse over the capital budget.

Hopes for early adjournment were lowered despite what were characterized as positive talks between legislative leaders and Gov. Sean Parnell a day earlier. Chalk it up to one more nerve-racking symptom of the fits and starts that have defined this special session.

The operating budget vote came on day 19 of the 30-day session. The package agreed to Friday includes $7.8 billion for state agency costs as well as such things as debt service and fund transfers. Among the fund transfers is nearly $1.5 billion characterized as savings, including $1 billion for budget reserves, $400 million for an endowment for an energy assistance program and $60 million for a ferry replacement fund.

The $2.4 million included for Goose Creek Correctional Center falls short of what was requested to ramp up operations at the new prison. The money is expected to help with such things as debt service and securing the as-yet-unopened facility.

Some lawmakers want an audit of the project. Sen. Charlie Huggins, R-Wasilla, said he has no problem with that. But he said the state has put a lot of money into the facility already and that hiring security to watch it doesn't make sense. He was the lone opposing vote on the package.

The operating budget is the only bill lawmakers say they're required to pass. But politically -- and practically -- many also realize they would be hard-pressed to leave Juneau without at least a bare bones capital budget.

The main point of contention continued to be contingency language the Senate Finance Committee included in its capital budget proposal. The committee still has the bill and doesn't expect to meet this weekend.

Two House committees planned to continue hearings Saturday on energy projects included in the latest capital budget proposal. While the House doesn't have the capital budget in its possession, Rep. Lance Pruitt, R-Anchorage and co-chair of the special energy committee involved in the hearings, said it was deemed worthwhile to have representatives learn about the projects.

The energy projects are central to the intractable three-way dispute among the Senate, House and Gov. Sean Parnell. The Senate's capital budget contains poison pill language that would lead to all energy projects dying if the governor vetoes a single one. That, in turn, is a response to Parnell's threat to use his veto against capital projects if the Legislature failed to enact his oil-tax cuts.

Similar stories:

  • Legislature adjourns amid high drama

  • Senator says there won't be an oil tax cut this session

  • House OK's big capital budget

  • House ‘jobs’ bills on the move (on one leg only)

  • Partisan budget snaggle leads to special session; date unknown

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