ANCHORAGE – A new version of the state budget released by Governor Walker Monday removes funding for the Alaska Energy Authority’s proposed Susitna Dam.

“Governor Walker’s common-sense, economics-based decision to remove funding for the Susitna Dam is a strong show of leadership and willingness to walk the talk from last fall’s campaign when it comes to doing what’s best for Alaskans,” said Mike Wood, president of the Susitna River Coalition. “Spending well over $5 billion to dam the fourth-largest king salmon river in the state doesn’t make sense for the future of Alaska.”

The Capital Budget released Monday will be introduced in the legislature early next year, when state lawmakers will have the opportunity to make revisions. Once complete, the budget will go back to Governor Walker’s desk, where he is able to make final revisions before signing the budget.

“Nobody in Alaska is celebrating our economic situation right now,” said Wood. “But when the state faces a multi-billion dollar deficit, cutting funding for an expensive and ill-conceived Susitna dam is the right choice for our economy, our budget, and future of our state.”

The news comes one week after the release of a report showing that Alaska Energy Authority has grossly underestimated the costs of the Susitna Dam Project and that the proposed dam would directly compete with the proposed natural gas pipeline.

“Shelving the Susitna Dam Project creates an opportunity for all Alaskans to work on a statewide energy plan,” said Wood. “We look forward to working with the governor and legislature to develop policy that promotes responsible hydro development without putting our salmon populations at risk. In the end, we sincerely hope legislators don’t keep this failed project on life support by adding funding back in the final hour, as they did last year.”

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