A Senate subcommittee chaired by Soldotna Senator Peter Micciche has proposed a $23 million cut to Alaska’s transportation department budget. The new version is $8.9 million slimmer than the bill passed by the House.
Sen. Micciche (R-Soldotna): “At some point we have to stop budgeting at the likely top of the oil price spectrum.”
Senator Micciche insists state services must become more efficient given Alaska’s projected $3.5 billion budget shortfall. The proposals from his committee would slice 88 jobs from the DOT, with 33 of those jobs coming from the ferry system.
Senator Dennis Egan expressed frustration with the ferry system cuts, which Micciche acknowledged were significant, but overall the amendments will reduce ferry spending by $12.3 million compared to last year.
The administration last week proposed an amendment for salary increases for ferry system workers under two unions, which a Micciche aide said can be taken up by Senate Finance as it drafts its version of the operating budget.