(Juneau) - The Senate Finance Committee today unveiled a new education funding package that provides an increase of $98 million for K-12 and university spending, and $7.4 million toward school-related capital projects.

"I think the important thing is that Senate Bill 35 is the Senate Majority's attempt to try to reach some middle ground on the education issue," said Fairbanks Republican Sen. Gary Wilken, co-chair of the Senate Finance Committee. "If needed, we can use this legislation as a vehicle for everyone to give a little in order to make the education package work."

Senate Bill 35 was made public in Senate Finance today and is scheduled for consideration by the Committee Thursday. In addition to the governor's recommended funding level, the bill appropriates $82.1 million for K-12 education, and $15.8 million to the university, which includes $5.8 million for the public employees' and teachers' retirement systems.

In addition, it provides $7.4 million for the Department of Education's highest priority major maintenance projects and $450,000 to the city of Shishmaref to match U.S. Army Corps of Engineers funding for bank stabilization. This seed money allows access to a total of $1.6 million to protect the village school.

"The Senate Majority has determined that the capital list that came out of the House is not defensible in regard to education and is willing to support $7.4 million to go towards the 16 top rural school projects of the Department of Education," Wilken said.

The House passed a bill to increase education funding March 8, but it included $9.9 million in non-education discretionary capital projects.

"Rather than indiscriminate pet projects we've gone to a bona fide list of true capital needs," said Senate President Gene Therriault (R-North Pole).

Sen. Therriault said he has discussed the proposal with the members of the minority and majority in both the House and Senate over the past week. He pointed out that the new list includes funding for school-related projects in some of the communities that had projects on the House list, which also included funding for Shishmaref.

"Instead of buying heavy equipment and building docks, we're fixing schools," Therriault said.

"We support $82.1 million for K-12, along with $5.7 million for the university PERS and TRS, and we want to cement the university funding support in the operating budget rather than have it continue to reside in the capital budget," Wilken said.

SB 35 is contingent on a three-quarters vote of the Legislature to approve using money from the Constitutional Budget Reserve to make up possible shortfalls in the FY 04 and 05 operating budgets; restore money to be transferred into the CBR on June 30, 2004 under a constitutional provision requiring that general fund sub-accounts be "swept" into the Budget Reserve at the end of each fiscal year; and cover $125,000 for the CBR's 2005 investment management fees.

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