The operating budget, HB108, has passed the House. It is now on the way to the Senate for further consideration. The $8.9 billion dollar budget was guided by a sense of fiscal responsibility and prioritized essential state service and commitments to education, health and public safety.

K-12 education is a major portion of the FY12 budget. The foundation and pupil transportation programs total $1.14 billion in general funds (20% of the general funds). The University of Alaska general fund totals $663.2 million (11.6 % of general funds).

Large portions of the budget are consumed by the Department of Health and Social Services with nearly $2.5 billion, or 27% of the entire state operating budget. Department of Transportation & Public Facilities is nearly 6% of the general fund budget and Department of Corrections with nearly 5%.

Domestic violence and sexual assault initiative of $3 million in the Governor’s Office was moved into the base budget to reflect the consensus that on-going work is needed to address the epidemic in our communities.

Power Cost Equalization is funded at $34.3 million and the Energy Assistance Program is funded at $21.1 million. The budget also includes $400 million for the oil and gas tax credit fund and $60 million for community revenue sharing.

The price of oil needed to balance our budget stands at $83 a barrel. If the Governor’s oil tax proposal takes effect, we will need oil at $95 a barrel to cover current costs.

I commend the House Finance Committee and Subcommittees for their hard work. I enjoyed hearing from residents who came to testify to the Finance Committee and appreciate the time you took to put your comments on the record.