JUNEAU -- While higher-than-expected oil prices have fattened state coffers, Gov. Sean Parnell said Tuesday he's imposing spending restraint in the Capitol. It's a concept lawmakers say they buy into, but there's debate over how the pennies should fall.

Parnell wants to limit spending to $400 million in state general funds for capital projects, in addition to projects, such as a new crime lab, moving separately through the Legislature. Members of the Senate's bipartisan majority, however, see that plan as leaving lawmakers with about $100 million that they would have to share for projects back home -- far less than the $400 million to $500 million that Senate President Gary Stevens said many legislators would prefer.

Stevens, R-Kodiak, said he understands where Parnell intends to go on capital spending for roads, buildings and other projects. "It's not exactly our intention," he said of fellow lawmakers.

Whether that translates to increased capital spending is unclear. It might also mean a dicing of Parnell's proposed spending to make room for legislators' projects while staying within the governor's $400 million target.

While lawmakers like Senate Majority Leader Johnny Ellis, D-Anchorage, want to see a "healthy" capital budget, in part to help create jobs amid concerns of a softening economy, they say the overriding issue is what the state spends overall. And those details are still being worked out.

Lawmakers last year held back on capital requests because of state budget uncertainties, Stevens said. A recent revised revenue forecast, cited by the Parnell administration, projects more than $2.2 billion surplus for the budget year ending June 30, largely due to higher-than-expected oil prices.

Senate leaders agree with Parnell that $1.5 billion of that is essentially off-limits, expected to be reserved for education spending and repaying a debt. The rest is up for grabs and decisions will need to be made -- during this election year, when most legislative seats are up -- on what gets spent and what gets saved.

"In times of surplus, you don't just throw it all away," Parnell said. "You save some back for the lean years, as well."

Lawmakers in both houses have preached the same. But some have questioned whether the budgets for state salaries and other operations that Parnell has proposed are too limited; in December, he proposed about 2 percent growth, less than he said state agencies wanted. And then there are the infrastructure projects.