Alaska Senate approves $1.5B capital budget; includes $43M for new school in Kivalina

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JUNEAU, Alaska — The Alaska Senate has approved a $1.5 billion capital budget, most of which is from federal funds.

Senators voted 18-2 in favor of the budget on Saturday.

The budget is significantly smaller compared to recent years. It includes $43 million for a new school in Kivalina. The money is intended to satisfy a settlement agreement reached in a lawsuit over funding for rural schools.

The spending package also includes supplemental items. The package includes up to $5 million to respond to Dalton Highway flooding.

The budget eliminates one-time education funds of $52 million for next year and 2017, in line with Gov. Bill Walker's proposal. Legislators had approved the money last session.

The measure still must go to the House.

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