Post by Logan on Mar 5, 2016 20:04:51 GMT -6
JUNEAU — Legislators are applying some creativity to the House version of the state operating budget as they grapple with a multibillion-dollar state deficit exacerbated by low oil prices.
The latest draft of the budget in the House Finance Committee envisions this year putting $80 million into the fund used to pay for state-sponsored scholarships and drawing nearly as much out next fiscal year to go toward the teachers’ retirement system.
It also would replace a portion of state unrestricted general funds for the university system with $24.7 million from the Power Cost Equalization endowment. That provides assistance for rural areas faced with high electricity costs. House Finance co-chair Mark Neuman said there are excess funds beyond what is needed for the program and that’s what the committee has proposed using. The goal is to reduce unrestricted general fund spending and the state’s draw on reserves, the Big Lake Republican said.
The state budget deficit is in unrestricted general funds.
The bill draft also would capture $435 million in still-available reserve funds this year and put it into the fund that pays for public education. Neuman is proposing using $145 million of that in each of the next three years toward the state’s much larger overall tab for education.
Read more: juneauempire.com/state/2016-03-04/committee-applies-some-creativity-state-budget
The latest draft of the budget in the House Finance Committee envisions this year putting $80 million into the fund used to pay for state-sponsored scholarships and drawing nearly as much out next fiscal year to go toward the teachers’ retirement system.
It also would replace a portion of state unrestricted general funds for the university system with $24.7 million from the Power Cost Equalization endowment. That provides assistance for rural areas faced with high electricity costs. House Finance co-chair Mark Neuman said there are excess funds beyond what is needed for the program and that’s what the committee has proposed using. The goal is to reduce unrestricted general fund spending and the state’s draw on reserves, the Big Lake Republican said.
The state budget deficit is in unrestricted general funds.
The bill draft also would capture $435 million in still-available reserve funds this year and put it into the fund that pays for public education. Neuman is proposing using $145 million of that in each of the next three years toward the state’s much larger overall tab for education.
Read more: juneauempire.com/state/2016-03-04/committee-applies-some-creativity-state-budget