(JUNEAU) - A House and Senate Conference Committee approved a compromise budget package today that increases K-12 education funding by $82 million, the largest single increase to education in the State's history, and provides for capital needs.

"We struck the three-quarter deal on the education budget, but because of the lateness of the session, Senate Bill 283 became an efficient way to deal with this year's capital budget as well," said Senate President Gene Therriault (R-North Pole).

Senate Finance Co-Chair Gary Wilken said the budget will keep Alaska growing.

"The capital budget that we passed for '05 is $1.6 billion to build Alaska, to keep Alaskans working and to provide the infrastructure so we can grow the economy. Once again, the State is able to maximize more than $1.4 billion in federal monies with less than $200 million in State money. Yet the money is allocated wisely, making it a robust budget that touches every person in every corner of Alaska. The Senate and House are proud of it and encourage its passage so we can get on with building Alaska," Sen. Wilken said.

Speaker Pete Kott (R-Eagle River) said of the compromise, "This bill has been a long time coming. It's the culmination of extensive effort by legislators and staff, working together in a civil manner, to create a funding solution that has bipartisan support. This legislature makes clear that education is a top priority in Alaska."

"This is a major achievement," said Senate Minority Leader Johnny Ellis (D-Anchorage). "We are pleased to direct more new money to public school students than in any previous year."

Senate Bill 283 includes:

• $5.8 million for the Department of Education's top 11 major maintenance projects.
• $450,000 in a re-appropriation to the city of Shishmaref to match U.S. Army Corps of Engineers funding for bank stabilization. The seed money allows access to a total of $1.6 million. To ensure protection of the village school, the bill appropriates an additional $2 million in general funds.
• $1 million for the Yuut Elitnauriviat People's Learning Center in Bethel.
• $1.6 million for Dillingham middle school roof replacement and high school roof repair, which don't qualify for Department of Education funds because Dillingham is a single site school district.
• $1.4 million to hold harmless small rural school districts that still receive transition dollars under foundation formula changes that went into effect in 1999.
• $15.8 million for the University of Alaska, including $5.8 million for the public employees' and teachers' retirement systems.

Portions of the bill are 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, and restore money to be transferred into the CBR at the end of the 2004 and 2005 fiscal years under a constitutional provision requiring that general fund sub-accounts be "swept" into the Budget Reserve at the end of each fiscal year.

Sponsored by Bethel Democrat Lyman Hoffman, Senate Bill 283 was originally a bi-partisan effort to address the consequences of a lack of three-quarters vote on the Constitutional Budget Reserve at the end of last session, and passed the Senate unanimously Feb. 16. The House amended the bill March 8 and a House and Senate Conference Committee settled on today's agreement.

The Conference Committee recommendation now goes back to both the House and Senate for a vote on concurrence.

# # #