04/19/2014 04:03 PM Senate FIN

CS FOR HOUSE JOINT RESOLUTION NO. 10(FIN)                                                                                     
                                                                                                                                
     Proposing amendments  to the Constitution of  the State                                                                    
     of  Alaska  creating  a  transportation  infrastructure                                                                    
     fund.                                                                                                                      
                                                                                                                                
7:06:56 PM                                                                                                                    
                                                                                                                                
REBECCA ROONEY, STAFF, REPRESENTATIVE PEGGY WILSON,                                                                             
presented HJR 10:                                                                                                               
                                                                                                                                
     HJR  10  will  put a  constitutional  amendment  before                                                                    
     voters to amend the  Alaska constitution to reinstate a                                                                    
     dedicated  fund for  transportation  projects. If  this                                                                    
     change   is   passed   by  the   voters,   the   Alaska                                                                    
     Transportation   Infrastructure    Fund   (ATIF)   will                                                                    
     dedicate  transportation user  fees  and taxes,  (motor                                                                    
     fuel  tax,  vehicle  rental   tax,  studded  tire  tax,                                                                    
     driver's license and  identification card fees, vehicle                                                                    
     registration fees) to transportation projects.                                                                             
                                                                                                                                
     The  crafters  of  the  constitution  allowed  for  two                                                                    
     dedicated   transportation  funds   at   the  time   of                                                                    
     statehood, one for land transportation  and one for sea                                                                    
     transportation. They realized that  some funds would be                                                                    
     needed  no matter  the economic  or political  climate.                                                                    
     They  lasted   for  several   years  until   they  were                                                                    
     eliminated.  HJR  10  will reinstate  a  transportation                                                                    
     fund.                                                                                                                      
                                                                                                                                
     In  FY14,  79  percent of  our  capital  transportation                                                                    
     budget  will  come  from the  federal  government.  The                                                                    
     Federal  Government  passed  a new,  two  year  highway                                                                    
     program,  MAP-21. The  good news  is  that the  overall                                                                    
     federal-aid  funding remains  consistent with  SAFETEA-                                                                    
     LU,  the  previous  program.  However,  the  amount  of                                                                    
     funding for  roads not on  the National  Highway System                                                                    
     (NHS) has been  cut by about 50 percent. We  will see a                                                                    
     lot less funding for our borough and city roads.                                                                           
                                                                                                                                
     The categories  of funding have  been reduced  and they                                                                    
     are much  more restrictive. Our own  DC delegation have                                                                    
     told the legislature that Alaska  needs to rely less on                                                                    
     the federal  government and  start shouldering  some of                                                                    
     the    burden   of    improving   our    transportation                                                                    
     infrastructure.                                                                                                            
                                                                                                                                
     The  roads,  bridges,  airports,  ferries  and  transit                                                                    
     systems that make up  our state's transportation system                                                                    
     are  essential  to   mobility,  commerce  and  economic                                                                    
     development.    This     system    enhances    economic                                                                    
     competitiveness, increases safety  and enhances quality                                                                    
     of life.  There is  a growing imbalance  between system                                                                    
     use  and  capacity   as  well  as  the   need  for  new                                                                    
     infrastructure  to access  our  valuable resources.  To                                                                    
     insure  Alaska  has  the  infrastructure  necessary  to                                                                    
     develop our  resources as well  as providing  a quality                                                                    
     of  life for  our citizens  we must  commit to  funding                                                                    
     transportation.  Having  a  dependable  revenue  stream                                                                    
     from year to  year will allow Alaska  to tackle today's                                                                    
     congestion   and  maintenance   projects  as   well  as                                                                    
     developing the needed access to resources and energy.                                                                      
                                                                                                                                
     The latest  version of  HJR 10  updated the  dates that                                                                    
     the  revenue would  be directed  into the  ATIF and  it                                                                    
    also added tire taxes as another source of revenue.                                                                         
                                                                                                                                
7:09:58 PM                                                                                                                    
                                                                                                                                
TOM BRICE,  ALASKA LABORERS UNION, JUNEAU,  spoke in support                                                                    
of HJR 10.  He understood that the fund needed  some time to                                                                    
increase   in   order   to  be   used   for   actual   large                                                                    
transportation projects.  He felt  that the taxes  should be                                                                    
used for dedicated highway programs.                                                                                            
                                                                                                                                
Vice-Chair Fairclough CLOSED public testimony.                                                                                  
                                                                                                                                
Vice-Chair Fairclough noted that there were a number of                                                                         
letters in support of the bill.                                                                                                 
                                                                                                                                
HJR 10 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
HB 384 am was SCHEDULED but not HEARD.                                                                                          
                                                                                                                                
7:12:29 PM                                                                                                                    
RECESSED until 1 P.M. on 4/20/14.