Alaska Gov. Sean Parnell has signed budget legislation that includes $397.2 million in new general obligation bond authority.

The bonds, which would fund K-12 and higher education facilities, must be approved by voters in the state’s November general election.

The budget projects that the state will have $5.366 billion in general fund revenue in fiscal 2011, which begins July 1.

Parnell used the line-item veto to cut $336 million in spending authority. That leaves an operating general fund budget of $4.5 billion and a capital budget with $550 million of general fund spending, which would leave $303 million to transfer to a budget reserve fund.

The state gets most of its revenue from oil taxes, and the budget is based on a projected average price of $77.6 per barrel.

“Because Alaska is so dependent on volatile oil revenues, it makes sense to look ahead 10 years and save for the day when we again are likely to have a sizeable deficit,” Parnell said in a news release.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.