- Associated Press - Friday, February 13, 2015

JUNEAU, Alaska (AP) - Questions have been raised about an administration proposal to place $10 million in an unallocated reserve to address unintended consequences from proposed budget cuts.

Gov. Bill Walker’s budget director, Pat Pitney, told the House Finance Committee Thursday that it would be a contingency fund of sorts.

She said the budget proposes some large cuts, and some could have unintended consequences or inadvertently affect other agencies. She said the money would allow the administration to respond to any problems.

Committee co-chair Mark Neuman expressed concern with the approach. He said supplemental budgets are meant to address unforeseen needs.

A memo from a legislative attorney said an unallocated provision in a budget bill that allows the governor to add or reduce funds in existing appropriations among departments would likely be found unconstitutional.

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