Gov. Palin Cuts Funding for State Veterans Cemetery

JUNEAU – Sen. Joe Thomas is upset that promised funding for a state veterans cemetery in the Interior was among cuts Gov. Sarah Palin made to her proposed budget for fiscal year 2010, which starts in July.

The Fairbanks Democrat sits on the Senate Finance Committee, which likely will scrutinize Palin’s budget amendments early next week.

“I’m a little concerned,” he said. “It’s an important project, and it’s floundered around a bit in the past couple of years. I thought we were finally moving forward with it.”

He acknowledged the state’s financial situation is driving cuts, but he was troubled to see funding still in place for warm storage buildings and other projects instead.

U.S. Sen. Lisa Murkowski cited the veterans cemetery as a worthy state effort in her annual address to the Alaska Legislature on Thursday.

Funds for Veterans Cemetery Among Budgets Cuts by Gov. Palin

FAIRBANKS – A Fairbanks lawmaker is upset after Gov. Sarah Palin cut promised funding for a veterans cemetery in the Interior.

Sen. Joe Thomas, a Democrat, said he thought the project was finally moving forward after floundering a few years. But then the promised $250,000 was among the cuts Palin made this week.

Thomas said he appreciates the financial situation the state is in, but didn’t understand some other projects – such as warm storage buildings – which weren’t cut.

Legislators Quibble with Palin’s Characterization of Budget Changes

Sen. Bill Wielechowski, D-Anchorage

JUNEAU, Alaska — A revised revenue forecast for the 2010 fiscal year released by the Palin administration Wednesday is prompting legislators to speak out.

Gov. Sarah Palin announced a drop of more than $2 billion in revenue along with more than $445 million in spending cuts for the 2010 operating and capital budgets.

Legislators say some of the so-called spending reductions are simply deferred payments that shouldn’t be considered cuts.

Karen Rehfeld, director of the Alaska Office of Management and Budget

“You’ve got $100 million in oil investment credits that were not spent, so that’s not really a cut, that’s something we’ll expend in the future,” Sen. Bill Wielechowski, D-Anchorage, said. “You’ve got another $166 million paying down the unfunded liability in PERS/TRS, we’re essentially deferring that.”