Democrats in the minority said the package ignores areas of great need and asks local governments to pick up too much of the tab.

The Legislature approved a $2.1 billion budget for state agencies that is about $5 million higher than last year. They also approved an $85 million capital budget, lower than past years, but expanded that enormously by tacking on $200 million worth of deferred maintenance projects financed by bonds and a $250 million school construction bill.

The Legislative majority has a five-year plan to cut total general fund spending by $250 million. After three years, a $190 million reduction has been achieved, said House Speaker Gail Phillips, a Homer Republican. The overall general fund budget is about $2.4 billion.

"We have kept our commitment," she said at a press conference early this morning following the Legislature's adjournment.

Legislators plan to use up to $700 million in reserve funds to balance the budget, due largely to low oil prices.

Concern was expressed throughout the session by lawmakers in both parties about the low prices, but many also said the state has more than $1 billion in deferred maintenance needs that can't wait.

"I would say that is part of the normal cost of doing business in Alaska," Phillips said.

Among the areas of concern to minority lawmakers is a 5 percent cut in direct assistance to municipalities, which they said will force local governments to raise taxes. Other concerns included less construction funds for rural schools than hoped for, insufficient funding for the University of Alaska to continue all current programs and lower amounts than Knowles requested for at-risk family prevention programs.

"We have addressed a small amount of these deferred maintenance needs," said Rep. Kim Elton, a Juneau Democrat, during floor debate. "But I do have a sense . . . that in this operating budget we may be compounding our deferred maintenance problem."

Rep. Eric Croft, an Anchorage Democrat, said the Legislature passed bills that require $46 million in new spending and any claim of budget-cutting is rhetoric.

Most Juneau projects sought by the Knowles administration and local legislators were included. A new National Guard armory is funded, as is authorization for a new gym and money for various building repairs at the University of Alaska Southeast. There's also money for an indoor shooting facility and fund-raising authorization for the university's portion of a new National Marine Fisheries Center facility at Lena Point.

The number of state employee positions funded in the budget is virtually unchanged at 21,420, three more than the current year. An additional 57 permanent full-time jobs are created, while there are 54 fewer part-time and non-permanent positions.

Most upcoming capital improvement projects are funded by having the Alaska Housing Finance Corp. sell $200 million worth of bonds that will be paid back by the state over seven years. Rep. Mark Hanley, an Anchorage Republican who co-chairs the House Finance Committee, said the state can afford the bonds because its debt level has dropped considerably in recent years.

The total state capital funding secures more than $700 million in federal and other funds.

The Legislature also approved Senate Bill 11, which allocates $250 million for school construction, which will supplement $157 million in matching funds provided by municipalities - including Juneau - with the authority to issue bonds. Hanley said the payouts will cause the state's debt payments to level off, rather than drop as they have in recent years.