Legislature(2009 - 2010)SENATE FINANCE 532
03/02/2009 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB124 | |
| SB123 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 123 | TELECONFERENCED | |
| *+ | SB 124 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 124
"An Act relating to the authorization for the
Department of Transportation and Public Facilities to
participate in the American Recovery and Reinvestment
Act of 2009; and providing for an effective date."
9:08:37 AM
MICHAEL BARNHILL, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF
LAW (LAW), informed the committee that SB 124 ensures that
the Department of Transportation and Public Facilities
(DOT/PF) has the authority needed under state law to
participate in the American Recovery and Reinvestment Act
(ARRA) of 2009, otherwise known as the economic stimulus
bill. The bill has three sections of intent language. The
purpose of intent language sections A and B is to identify
the sections of the economic stimulus bill in which DOT/PF
will participate. Each of the sub-agencies of the U.S.
Department of Transportation (USDOT) to which DOT/PF would
apply for funding are identified. He noted that Section C,
Title XII, gives the Federal Aviation Administration (FAA)
discretion regarding funding.
9:11:48 AM
Co-Chair Stedman asked about the timeline regarding the
certification. Mr. Barnhill answered that action had to be
taken as soon as possible. He anticipated making the
governor's certification as early as mid-March. Funds would
be ready to flow on 3/4/09.
FRANK RICHARDS, DEPUTY COMMISSIONER, HIGHWAYS AND PUBLIC
FACILITIES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, reported that the Federal Highway
Administration (FHWA) has said the funds are ready as soon
as the certification is provided.
Co-Chair Hoffman stated that many legislators want to apply
for all available funds. He quoted from Section C, page 2,
line 14: "to seek to maximize the funding available." He
noted the legislation mentions the intent of the
legislature and queried who the administration had talked
to regarding intent.
Mr. Barnhill acknowledged that they had spoken with no one
in the legislature; the language had been phrased in the
usual manner of intent language. He believed it was the
intent of the administration to maximize applying and
receiving funding under Title VI and Title XII of the
economic stimulus bill. The only notice made is that the
FAA has discretion, which the state has no control over.
Co-Chair Hoffman stated that his intent was open dialogue.
Co-Chair Stedman returned to the question of when action
needs to be taken. Some thought action should be taken
immediately. He emphasized the need to know firm deadline
dates. Mr. Barnhill answered that there are a variety of
deadlines in the stimulus bill for certification by the
governor. The governor has 45 days until April 3 to certify
with respect to use of the funds. Another deadline is March
19. He stated the administration would do everything
possible to meet the deadlines. He did not know of
legislative deadlines except the backstop legislative
certification; there was question whether the 45-day
deadline applied to that. He thought an opinion was being
sought regarding the deadline from the federal Office of
Management and Budget (OMB).
9:16:09 AM
Co-Chair Stedman asked for definitions of Title VI and
Title XII. Mr. Barnhill replied that Title VI is Homeland
Security and Title XII is USDOT.
Co-Chair Stedman stated that legislators were under the
impression that they could take action after the governor's
deadline date; other information indicated that the
legislature and governor had the same deadline dates. Mr.
Barnhill reiterated than an opinion was being sought from
the federal OMB. He stated that there is frenetic activity
across the country with respect to details about deadlines.
Co-Chair Stedman asked if he would get back to the
committee when the deadlines were clarified. Mr. Barnhill
reiterated that the governor has deadlines but he knew of
no deadlines for the legislature.
Senator Huggins stated that he was offended by Mr.
Barnhill's tone and use of the language "frenetic
activity." Mr. Barnhill apologized. He clarified that there
was a great deal of activity around the country, including
many emails with misleading, false, and changing deadlines
regarding certification.
Senator Huggins was surprised with the statement that Mr.
Barnhill had not spoken to anyone in the legislature. He
emphasized that both the administration and legislature
work for Alaskans. He was surprised that the department had
not spoken to the legislature. He wanted to cooperate and
move thoroughly and thoughtfully to make the process go
well.
Senator Huggins queried the deadline for the approval of
the legislation.
9:19:50 AM
Mr. Barnhill stated for the record that he simply drafted
the legislation and has no authority to speak for the
administration or to negotiate. Senator Huggins understood
and hoped to develop a positive relationship in order to
move forward.
Mr. Richards answered that regarding the timeline the
stimulus bill requires DOT/PF to obligate at least 50
percent of the transportation funds awarded to Alaska
within 120 days of enactment, or by June 15, 2009. The
projects have to be developed and authorized by FHWA to
solicit project bids in order to get Alaskans to work. The
department has been communicating with the legislature and
intends to continue dialogue so that the bill can be
understood fully. Almost two weeks after enactment, the
department is still learning the nuances of the
legislation. Personnel are working many extra hours to
maximize transportation funding for Alaska.
Senator Huggins asked for more information regarding
deadlines. Mr. Richards replied that at least 50 percent of
the money must be obligated by June 15, 2009, and all of
the funds must be obligated by February 17, 2010.
Senator Huggins clarified that the purpose of the current
phase is to maximize funding. He asked to be walked through
the process of legislative involvement during the next
phase.
9:22:35 AM
Mr. Richards explained that the department is currently
aware of funding formulas through FAA, FHWA, and the
Federal Transit Administration (FTA). Criteria are being
developed by the Office of the Secretary of USDOT for other
discretionary programs within the bill. The department does
not know yet what funds will be available for states to
compete for. The department will communicate with the
legislature about the additional programs when it knows
more.
Co-Chair Hoffman stated that he was under the impression
that the legislature could apply for funds if it did not
agree with the governor's application. He wondered if SB
124 addressed the issue of the legislature applying for
different appropriations. He asked if other departments
such as the Department of Health and Social Services would
also look to the legislature to apply for funds.
Mr. Barnhill understood that the intent of the bill was for
the administration to apply for all funds available to the
state under Title VI (Homeland Security) and Title XII
(Transportation) of the economic stimulus bill.
Co-Chair Hoffman pointed out that SB 124 states the intent
of the legislature to have the department apply for the
funds. He reiterated his understanding that the governor
applies and then the legislature makes a determination and
decides whether it wants to apply. He asked if the
legislature would still have the authority to apply for
projects if SB 124 were passed.
Mr. Barnhill assumed Co-Chair Hoffman was referring to
Section 1607 of ARRA, the "backstop authorization section."
The section requires the governor to certify by April 3
that she will apply for and use funds available under the
economic stimulus bill. If the governor does not certify,
the backstop legislation gives the legislature the
authority to certify that it will apply for and use the
funds. He did not think the backstop authorization was
triggered unless the governor did not apply for funds.
Senate Bill 124 assumes the governor will apply for
everything available.
9:26:43 AM
Senator Huggins asked if there were other ways to apply for
funds. Mr. Barnhill replied that there are a variety of
other agencies drafting bills to get the authority to apply
for other funding sources in ARRA. The objective is to have
a collection of bills that will cover the entire stimulus
bill. He noted the complexity of the stimulus bill. He
admitted one option was to have a single, broad bill with
more agencies and more funding, but he thought it might be
easier to take smaller steps at the beginning.
Co-Chair Stedman noted the lack of backup information and
asked that more be included in the bill packet.
Specifically, he wanted the governor's timeline with her
planned actions clearly laid out.
Senator Huggins asked if other states had been consulted
regarding techniques used. Mr. Barnhill answered that
several weeks previously LAW had conducted a national
search for a pattern of response with respect to state
implementation. At that time, there did not seem to be a
pattern. Senator Huggins encouraged conversation with other
states.
9:31:18 AM
Mr. Barnhill offered to provide information garnered
regarding the various task forces being put together by
other states. He referred to a document with a list of
approximately 26 states.
Senator Thomas confirmed that other bills were forthcoming
that would correspond to other titles [similar to Titles VI
and XII] such as military and education. He asked for
clarification regarding what he thought was a critical
deadline, the thirty days from enactment. Mr. Barnhill
replied that the thirty-day deadline referred to Section
1511 certification that must be made by the governor or the
head executive of DOT/PF. The provision requires
certification of maintenance of effort regarding the
expenditure of funds. He stated that he could provide the
committee with copies of a memo listing the governor's
deadlines.
Senator Thomas asked if the certification also indicated
that the state would follow up on the projects. Mr.
Barnhill offered to provide a listing of all of the
deadlines.
Senator Olson understood that SB 124 gave the authorization
for DOT/PF to apply for the funding, but not to spend the
money. Mr. Barnhill replied that a partner bill, SB 123,
would provide for appropriations of the funds.
9:34:01 AM
Co-Chair Stedman asked if there were a representative from
the administration present to speak to the legislation. Mr.
Richards replied that Karen Rehfeld, Director of OMB had
been slated to speak to the bill, but her flight had been
delayed.
Co-Chair Stedman stated that the committee had made an
effort to schedule the bill as soon as possible. He
reiterated concerns about the lack of backup information.
He stated that no action would be taken without more backup
and without hearing testimony from the administration. Mr.
Richards answered that he understood.
Co-Chair Hoffman asked if the bill were required in order
for the state to receive the funds. Mr. Barnhill replied
that the bill was an exercise of due caution to ensure that
DOT/PF has explicit authorization to participate.
Co-Chair Stedman wanted to work before the next meeting for
clarification regarding what the administration needs in
terms of legislative authorization.
Mr. Richards added that regarding the maintenance of
effort, the bill requires the governor to certify that the
state will maintain planned Alaska transportation funding.
The department interprets this to mean its current year
budget amount since next year's budget has not been
enacted. The administration will certify that it will not
supplant previous project funds with stimulus funds.
9:38:10 AM
Senator Thomas asked if the department would not supplant
FY09 budget but would supplant the FY10 budget. Mr.
Richards answered with an example: if project X had $2
million in general fund dollars appropriated by the
legislature, the department would not extract the $2
million general funds and use $2 million in stimulus funds
instead.
Senator Thomas thought that the money could be used for
shovel-ready projects, but that the department would
forward the state's allocated money to another project.
Co-Chair Stedman said that the SB 123 discussion would
cover the relationship between the maintenance of effort
and general funds.
SB 124 was HEARD and HELD in Committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 2009-02-24 Co-Chairs Letter.pdf |
SFIN 3/2/2009 9:00:00 AM |
SB 123 |
| DOT Aviation Revised 2-24.pdf |
SFIN 3/2/2009 9:00:00 AM |
SB 123 |
| DOT Hwy and Bridge Revised 2-24.pdf |
SFIN 3/2/2009 9:00:00 AM |
SB 123 |
| DOT response 2 20 09.pdf |
SFIN 3/2/2009 9:00:00 AM |
SB 123 |
| Economic Stim Fund Source Change DOT 2-20-09.pdf |
SFIN 3/2/2009 9:00:00 AM |
SB 123 |
| Stimulus project lists 2 22 09.pdf |
SFIN 3/2/2009 9:00:00 AM |
SB 123 |
| SB 124 Hearing Request.pdf |
SFIN 3/2/2009 9:00:00 AM |
SB 124 |
| US DOT Letter.pdf |
SFIN 3/2/2009 9:00:00 AM |
SB 123 |
| OMB response 3-2-09.pdf |
SFIN 3/2/2009 9:00:00 AM |
SB 124 |
| DOTPF Project Ready for Stimulus.pdf |
SFIN 3/2/2009 9:00:00 AM |
SB 123 |