Work starting on next year's state budget

Posted: Wednesday, July 21, 2010

JUNEAU - In building the next state budget, Gov. Sean Parnell wants to limit agency operating spending while focusing on certain priorities.

He identified those priorities Tuesday as resources and economic development, education, public safety and transportation infrastructure.

Officials are finalizing budget totals for the current spending year, which began July 1. Parnell blamed formula programs like Medicaid for large runups in spending. His budget director, Karen Rehfeld, said work is being done to examine the program and what can be done at the state level to contain rising costs. She said the hope is to have that information available as the new spending plan is drafted.

While Parnell said he wants the state to live within its means, Rehfeld said there's been no talk about spending caps, restrictions or cuts as work on the fiscal 2012 budget begins.

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