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JUNEAU, Alaska (KTUU) - One week after the Democrat-led House Finance Committee suggested a dramatic reduction in state payments to local governments that issue school bonds, the committee voted along caucus lines to add funding back into the operating budget proposal.

The 7-4 vote happened Tuesday afternoon as the committee considered hundreds of budget amendments, nearly all from minority Republican members attempting in vain to reduce government spending.

While the move would save $48 million annually, an idea that comes as policymakers grapple with $3 billion budget gap, Rep. Les Gara, D-Anchorage, said the reversal of course came in response to intense criticism from local governments that would have picked up the tab.

In particular, Fairbanks may have been unable to cover the increased expenses because it has a hard revenue cap, Gara said.

The decision likely sets up negotiations with the GOP-controlled Senate over the K-12 budget, which takes up more money than anything else. In addition to potentially reducing bond debt reimbursement, a likely topic of conversation in coming weeks is whether or not to reduce the dollar amount school districts receive for each student enrolled.

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Democrat-led finance committee reverses course on proposal to cut school debt reimbursement - KTUU.com