Bigger Alaska transportation budget: spending tops $719 million.

• Author: Storm, Gene
• Position: Special section: Transportation

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The Alaska Department of Transportation and Public Facilities will oversee almost $720 million in statewide transportation related construction spending in 2012. Of that total, more than $285 million is allocated for new projects that will be advertised by July 1 of this year, with another $433 million in spending on carryover projects from 2011.

These were among the numbers shared with a sold out audience at the Seattle Chamber of Commerce in April at the business group's Alaska Construction Season forum. Rob Campbell, DOT&PF's Central Region director, told the group that transportation related construction in Alaska has been largely dependent upon federal program spending.

"Historically, approximately 90 percent of Alaska's surface transportation spending comes from federal programs," Campbell said. He noted, however, that cuts in Federal Highway Administration grants could profoundly affect the dollars flowing to Alaska beginning as early as next year.

A Government Accountability Office (GAO) report released last October highlights the problem alluded to by Campbell. The GAO report noted that between 2005 and 2009, states received more dollars from the federal government than were contributed to the Highway Trust Fund by the 18.4 cents per gallon fuel tax. "Every state received more funding for highway programs than they contributed to the Highway Account of the Highway Trust Fund," according to the report.

Higher-mileage vehicles and driver's curtailing miles driven because of more expensive fuel prices are frequently cited for the decline in tax revenue. To meet funding demands that the Highway Trust Fund once covered, Congress has authorized the expenditure of $30 billion in general tax revenue since fiscal year 2008. That general fund spending is a target for congressional budget hawks.

Campbell told the Seattle audience that while continuing resolutions have produced the same level of federal funding as in previous years, the State of Alaska's increased capital budgets have resulted in spending upticks. Highway spending will see a 10 percent increase this year while airports, ports and harbor projects are allocated an additional 21 percent.

To illustrate his point, Campbell noted Alaska General Fund contributions to the overall transportation program are on the increase. State general fund expenditures have increased from $84.5 million in fiscal year 2009 to more than $274 million for this fiscal year. To...