State Legislature Summary
4-11-08
Tim Bodony (KIYU)

Audio version of the story, from the April 11 newscast
 

CAPITAL BUDGET (SB221)

After the House Finance Committee added more projects to it, the state capital budget now stands at around 2.5 billion dollars in total expenditures for construction, renovation, or engineering projects around the state. 

The bill currently includes:

-140 thousand dollars for Ruby to buy a fire truck, 

-about 196 thousand for Nulato to buy a grader, 

-and 43 thousand for improvements to the city building in Hughes.

Nulato is also in line to get 1.1 million dollars of federal money, through the Village Safewater program, to expand the upper townsite piped water system.  

The Yukon-Koyukuk School District would receive close to a half million dollars in projects.  YKSD schools are slated to receive a total of 160 thousand dollars for new carpet and paint, and another 100 thousand for district-wide mechanical system design and planning.   

YKSD and Interior Regional Housing Authority are listed as recipients of a proposed 212 thousand dollar grant for energy savings and conservation. 

Galena is only listed once in the latest version of the capital budget bill - for a 156 thousand dollar grant to fix up the State DOT shop adjacent to the Galena airport. 

Galena School District officials are watching to see how much money the legislature dedicates for major maintenance projects in the Department of Education budget.   

Three Galena projects - the renovations of the Two Seasons Dining Hall, GILA gymnasium and Headquarters building -  were submitted to and evaluated by the Department of Education, given a priority ranking, and placed on the maintenance list.   

But with only about 81 million dollars set aside for the list, Galena’s school projects are ranked below the funding threshold and would not come up for funding this year.    

Many lawmakers have been trying to put the ever-expanding capital budget is perspective, by noting that the legislature will likely set aside close to 4 billion dollars in protected savings accounts before the weekend is through. 
 

RENEWABLE / ALTERNATIVE ENERGY FUND 

Members of the state legislature have been debating the merits of setting up a permanent fund for alternative or renewable energy projects. 

The Senate is scheduled to begin work today on a bill that passed the House last year, that would deposit between 250 and 300 million dollars in an endowment, which would generate interest to pay for energy projects every year.   

Projects that have been evaluated already by the Alaska Energy Authority might get funding this year, without waiting for the fund be created.  City of Galena officials have tried to get close to 2 million dollars for seismic testing and exploratory drilling for coal bed methane through this other channels as the state budgets come together this week. 

State senator Albert Kookesh described the renewable energy fund concept on KIYU and KSKO earlier this week: 

"The way that fund is envisioned to work," Kookesh explained, "is that they are putting 250 million dollars into it this year, and maybe the same amount next year. And the interest off of the fund will fund those projects eventually."

The renewable energy legislation might also provide some funding immediately to a set number of projects that are already on a list maintained by the Alaska Energy Authority. But projects eligible for funding this year would have already been on the list before this week, according to Kookesh.

Kookesh also said that he was pleased at how the rural Interior fared in the supplemental budget that was signed into law by Governor Palin last week.   

Many of the projects that Palin vetoed from last year’s capital budget got through on the second attempt in the supplemental.   

Kookesh and every other lawmaker had to visit with Governor Palin to defend the projects that she had previously vetoed.   

"We had a good meeting with her, she was very receptive, and we explained what all those needs were. And we criticized her a little bit for not talking to our staff about the backup and the documentation we have to justify these projects," Kookesh said on Wednesday.  

Some of the projects for the western Interior that will now receive funding through the 2008 supplemental budget include 40 thousand dollars for the first phase of building a multi-purpose building in Huslia; 75 thousand dollars for fuel tank renovation at the schools of the Yukon Koyukuk School District; and improvements to community halls in Grayling and Holy Cross. 

Kookesh also responded positively to the news this week that British Petroleum and ConocoPhillips want to team up to build a natural gas pipeline from the North Slope to the lower 48. 

A propane distribution system, using barge deliveries and back hauls, is already in use on the Yukon, Tanana, and Koyukuk Rivers.  But Kookesh hopes that a North Slope gas line down the road and railbelt might result in a cheaper source of propane or LNG for villages along the rivers. 

"When we were about to sign [a resolution of support] the other day, Lyman Hoffman, the chairman of the Finance Committee in the Senate, said 'I hope you guys realize if you support this resolution that we are going to be looking at a huge cost for rural Alaska distribution systems.'  And nobody blinked an eye" said Kookesh.

"Even if we have to build a distribution center someplace, villages could have access to gas in a container scenario rather than a pipeline, as long as we had a spur line to deliver that" he added.

The state legislature is scheduled to meet in special session starting on May 19 to discuss natural gas pipeline issues.   

Kookesh’s 4-year term in the senate ends this year.  He has filed for re-election, but no other candidates have filed to challenge him for the Senate C seat yet.