Gov. Sean Parnell proposed $12.1 billion in spending Thursday during the next fiscal year, including $29 million and a shift in state positions to support a Mat-Su Valley prison as well as spending from the Alaska Permanent Fund.
The prison is near completion, but not yet operational amid concerns about whether the state can afford its operating costs.
“Goose Creek needs to be opened,” Parnell told the group.
Parnell’s budget also includes a $350 million package of port bonds for the November election. He said he wants to see more investment in ports including the Port of Anchorage, site of a major expansion project plagued by cost overruns.
Much of Parnell’s speech was focused on the topic of natural resources, as the governor called for the state’s natural gas pipeline projects to align and said lawmakers “aren’t going to wait around” during an upcoming legislative session he called key to the project. Parnell’s budget also asks for $3.8 million to study North Slope shale gas.
Public safety was another major point in the governor’s speech, with a request for $11.9 million to back up his “Choose Respect” campaign against domestic violence and sexual assault. He also proposed the addition of 16 new law-enforcement officers stationed in rural Alaska.
Overall, the state says the budget represents $600 million less in state general fund spending than the current year's budget.
Parnell says he wants a public conversation with the Legislature on wants versus needs. He says his plan shows restraint and should send a message that state spending will not spike just because Alaska has surplus funds.
He says his budget will leave $3.7 billion in surplus.
The $12.1 billion includes Permanent Fund appropriations. Subtract that, and the budget totals $10.6 billion -- down from $11.4 billion in the current spending year.
Contact Matthew Simon at msimon@ktuu.com
