40.0°

After months of battling over the state's capital budget, Juneau is awaiting word on its $28 million share of the $2.2 billion package.

The capital budget spending bill covers long-lived, expensive projects like roads and water treatment plants. It varies greatly from year to year depending on the state's finances, in contrast to the more stable operating budget that runs state government.

The capital budget passed by the Legislature in the last days of the session has yet to be forwarded to Gov. Sarah Palin for her signature. Once that is done she will have 20 days to act on it.

Top projects in Juneau include highway work, including a series of projects on Glacier Highway and Egan Drive through town, as well as Thane Road south of downtown.

Widening of the highway will be done from Amalga Harbor to Eagle Beach, and the highway from Mendenhall Loop to Auke Bay Ferry Terminal will be resurfaced. Both projects will cost millions of dollars each.

Other projects of the Department of Transportation and Public Facilities include improvements to the Brotherhood Bridge over the Mendenhall River and improvements to Egan Drive downtown from Whittier Street to Main Street, including a pedestrian crossing and turn improvements. Those projects also have million-dollar price tags.

Juneau's capital request budget includes only a modest amount of money from the state's general fund, about $3.3 million, but also includes $11.3 million in cruise ship head tax and $13.6 million in federal money, including stimulus funds.

All of the Juneau projects in the budget were originally requested by Palin in the capital budget she submitted to the Legislature, except for a $2.5 million cruise ship dock project that was added by lawmakers.

Palin in past years has vetoed projects funded by cruise ship money, even though that money can only be spent on things related to the cruise industry.

Rep. Beth Kerttula, D-Juneau, said she hoped Palin would approve the dock, even though she did not originally request it.

"It's directly related (to cruise passengers), it's needed and it's reasonable, there's a host of reasons why she should sign it," Kerttula said.

The federal stimulus money was a point of contention between Palin and the Legislature much of the session.

Palin first said she was reluctant to accept money from the American Recovery and Renewal Act, passed by Congress earlier this year to try to revive the U.S. economy. More recently, however, she said she'd accept most of the money, but she still has a few qualms.

"We must acknowledge these are one-time, temporary funds, that the federal government is deeply in debt, and that we must borrow money from other countries to fund much of government," she said in a statement released this week.

Kerttula said she hoped that Palin would accept the money appropriated by the Legislature. All money Alaska rejects will go to another state.

In addition to the money targeted directly to Juneau, either to the City and Borough of Juneau or to state agencies with instructions to spend it on projects in Juneau, the city will also benefit in other ways.

The Marine Exchange of Alaska, headquartered in Juneau but which provides vessel tracking services statewide, has a $450,000 appropriation. Some repairs to the Capitol Building are also included.

• Contact reporter Pat Forgey at 523-2250 or patrick.forgey@juneauempire.com.