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Governor Murkowski Unveils FY06 Budget Proposal
Calls for spending some of FY05 windfall on education,
roads to jobs, other programs


December 16, 2004

Alaska Governor Frank H. Murkowski Wednesday proposed a Fiscal Year 2006 budget that makes significant investments in Alaska schools while focusing state spending on the essential infrastructure that will create jobs for Alaskans.

"My vision for Alaska is that by developing our resources and providing good jobs for Alaskans, we can raise the quality of life for all of our citizens," Murkowski said. "These are the values reflected within the pages of this budget."

mp3Governor's Budget Principles (252.8k mp3) - Governor Frank H. Murkowski notes that his proposed FY06 budget would save some of the windfall from high oil prices, spend less than proposed spending limits, and includes a number of prudent, one-time investments...

mp3Budget Funds Priorities (179.4k mp3) - Governor Murkowski says the budget he is proposing reflects his administration's priorities...

mp3Future Budget and Summary (378.5k mp3) - Governor Murkowski looks ahead to what the state budget and economy will look like in the future....

mp3Transportation Funding (170.1k mp3) - Governor Murkowski describes his proposed spending on transportation projects in the FY06 budget...

mp3Education/Healthy Communities (287.5k mp3) - Governor Murkowski says his budget will provide the forward-funded resources schools need to ensure continuity of quality education for Alaska's children...

mp3Services for Seniors (231k mp3) - Governor Murkowski lays out his proposal to fund increased services for Alaska's senior citizens by enhancing his SeniorCare program...

mp3Local Government Assistance (264.6k mp3) - Governor Murkowski says his budget will provide one-time help to local governments for the costs of retirement benefits and energy...

mp3Public Safety/Substance Abuse (199.1k mp3) - Governor Murkowski says his budget proposal also places a high priority on keeping Alaska communities safe, by funding additional Alaska State Troopers...

The spending package includes a K-12 education proposal that provides two years of increased funding for schools at a cost of $127 million. The education proposal also makes permanent an $82 million increase approved by the Legislature in the 2003 session and provides for a record 23 percent increase in overall K-12 spending.

In addition to schools, the budget provides for a $145 million roads package that supports resource development statewide and makes significant transportation improvements for many Alaskans.

Murkowski proposes a $31 million increase over two years for the University of Alaska, providing necessary energy assistance to small communities and providing $27.1 million for gas pipeline work in the next fiscal year. The governor's spending plan also proposes extending and expanding the current SeniorCare program.

The FY 2006 budget will be buoyed by a portion of the $650 million temporary windfall that the state Department of Revenue is forecasting for this fiscal year. The governor proposes spending $352 million on essential needs in FY05-07 and saving the rest of it to offset future deficits.

"Because a budget reflects values, I am proposing to the Legislature that we use some of the windfall to not only balance next year's budget but to advance some of the goals on which this administration was elected into office," said the governor.

This current year windfall stands in contrast to a $363 million CBR draw anticipated at the end of the last legislative session, Murkowski said. Such a dramatic change in state revenues underscores the need for legislative action on a fiscal plan, the governor noted.

"With economic factors pointing toward decreasing revenue from oil over the next decade, I've crafted a budget that helps fix current problems while investing in future projects that will lead to Alaska jobs," Murkowski said.

Other highlights of the FY06 budget include a resource development package that continues an aggressive "roads to resources" agenda with advance work on the Bullen Point Road and the Dalton Highway.

It also builds upon the governor's safe communities and families agenda by adding nine new troopers, three crime lab technicians, providing $1 million for additional social workers and training and addressing essential deferred maintenance.

The administration plans to use revenues from the Amerada Hess royalty oil dispute to fund a $340 million bond package that funds a community road package that includes road upgrades and construction for Anchorage, Fairbanks and other areas of the state.

The budget includes $11 million to improve road access for tourism: $4 million for the Copper River Highway, $2 million for the McCarthy Road, and $5 million for the Stampede Trail. The Alaska Marine Highway System will receive increased funding to offset fuel costs and to keep vessels in service. Nearly $94 million is set aside for village safe water and other municipal water and sewer programs.

Governor Murkowski outlined highlights of his FY06 budget proposal during a speech in Anchorage to Commonwealth North.


On The Web:

Governor's proposed FY06 budget


Source of News & Audio Clips:

Office of the Governor
Web Site


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