Governor Sean Parnell yesterday signed into law three budget bills for Fiscal Year 2013. The governor also signed into law a $453.5 million general obligation bond package for statewide transportation projects that will go to the voters in November.

“Maintaining spending discipline, focusing on our constitutional priorities, investing in infrastructure to build economic opportunity, and saving for the future are vital components of the budget approved for the upcoming fiscal year,” Governor Parnell said. “I appreciate the detailed legislative work on the budget and legislators’ willingness to join me in limiting spending.”

Governor Parnell exercised his constitutional line-item veto authority to reduce spending. The governor vetoed a total of $66.6 million, largely from operating items.

The operating and capital budgets now total $12.1 billion, including $7.9 billion in state general funds. Total state operating budget growth has been limited to 3.3 percent. The budget includes full funding for K-12 education, Medicaid, retirement system unfunded liability, debt service, and employee contracts. The capital budget totals $2.9 billion, including $1.9 billion in state general funds.

Two billion dollars of surplus funds were moved to savings with the potential of up to $3.4 billion going into the Statutory Budget Reserve based on projected FY 2012 and FY 2013 balances.

More than $1.6 billion was appropriated for highways, aviation, the Alaska Marine Highway, harbors, village safe water, and municipal water and sewer projects.

Direct K-12 education funding increased $50 million in the signed budgets. The total state funded K-12 education and pupil transportation budget for FY 2013 is $1.2 billion. New legislation increased pupil transportation funding and resources to expand vocational education funding from grades 7 through 12. In addition, the state directly funds more than $329 million for school district retirement system unfunded liability for the Public Employees’ and Teachers’ Retirement Systems. The capital budget also includes over $431 million for school and university projects statewide.

Nearly $12 million in additional resources to combat domestic violence and sexual assault are included in the operating budget for prevention and intervention, support for survivors, and law enforcement.

The capital budget contains over $247 million for statewide energy projects including: $31.5 million for weatherization programs to help Alaskans make their homes more energy efficient; $25.9 million for the Renewable Energy Fund targeting projects in areas with the highest energy costs; and $20 million for home energy rebates. The operating budget contains $38.2 million to fully fund the Power Cost Equalization Program, and an estimated $48 million for the Alaska Low-Income Energy Assistance Program. In addition, $125 million was appropriated for the new Sustainable Energy Fund to help finance energy infrastructure projects that will reduce the cost of energy to Alaskans.

Senator Gary Stevens is praised Governor Sean Parnell for his actions as he signed the Fiscal Year 2013 Capital and Operating Budgets in Anchorage.

“We are very pleased with Governor Parnell’s actions on the Operating and Capital Budgets,” said Senate President Gary Stevens. “The Legislature agreed not to overspend, and in return, the Governor said he would not veto projects. Both sides kept their side of the deal, making it a great day for all Alaskans.”

“These budgets represent a lot of cooperation and teamwork between Alaska’s leaders,” said Senator Stevens. “The Governor and his Administration, worked closely with the Senate and House Finance Committee to make sure the needs of Alaskans were met while still staying within reasonable spending boundaries. I am very pleased with the outcome of these budgets that are so critical for building a better future for Alaska.”