Written by Ryan Tollefsen
The Alaska Senate recently came out with their draft capital budget for new infrastructure in the state. Senators want to improve transportation surfaces, airports, and the ferry system among general demands for better maintenance and rehabilitation of existing structures. This new budget is similar to last year’s plan in terms of spending, but it does puts a higher priority on transportation than in year’s past.
Funding Questions
As with many major proposals, the numbers don’t quite add up just yet. Walker wanted to make up the deficit by increasing taxes, but this idea was rejected by state lawmakers. Without the additional state funding though, Alaska will have to rely on help from the federal government. By supplying $280 million in state funds on its own, Alaska would receive $1.1 billion in matching funds from federal funding. Critics of the proposal note that Alaska is currently running out of savings, and faces a $2.4 billion deficit.
Surface Transportation Program
Taking the lion’s share of the $1.39 billion proposal, the surface transportation program is set to receive $670 million of all funds devoted to draft capital. The bulk of the surface transportation funding will go toward road construction and general maintenance. The $1.39 billion is separate from the funds Governor Walker is requesting for the commuter rail planning and the $1 million in state matching funds for community transportation.
Finding the Money
Despite the fact that Alaska is not replacing its savings fast enough to replenish their proverbial stockpile, supporters of the proposal believe in these projects enough to withdraw funds. They’re also planning to use funds from projects that managed to finish under their original budget. By making full use of the previously allocated funding, Alaska officials hope to alleviate the full weight of their current financial strain.
The Juneau Access Project Update
Juneau Access is the project that will make Juneau more easily accessible by integrating the highway system with the city. Last year, Walker declared the state would not finish the northern road from Juneau. This left an extra $23.5 million to be used as the state saw fit, but there’s currently some disagreement over the necessity of the northern road’s completion. Supporters found there is quite a lot of support for this road among the residents in the city.
Additional Line Items
The Port of Anchorage doesn’t appear to be getting any funding from the budget, nor will the 911 system receive any updates for this year. This potential budget will need to be approved by the legislature before its officially approved. Given the price, the allocations, and the state of the Access project, it may be a tall order for a smooth transition.
As state officials look at the landscape of Alaska, they’ve decided that it makes fiscal sense to renovate their cities and ramp up their construction. However, not everyone agrees that the funds are being distributed in the correct way. President Trump has been vocal about the need for states to take on additional responsibility so the federal government can allocate money for emergencies. But given how much still needs to be done to the current infrastructure, the capital will need to find a way to agree on a budget before their adjournment.
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Ryan Tollefsen is an Alaska resident and the founder and team leader of Unity Home Group.
Tags: AK, Alaska, Alaska Infrastructure, Ryan Tollefsen
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