Legislature(2007 - 2008)HOUSE FINANCE 519

04/06/2008 04:00 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 04:30 pm today --
+ HB 106 REPEAL FEES FOR STUDDED TIRES TELECONFERENCED
Moved CSHB 106(FIN) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 422 CHILDREN'S TRUST GRANT FOR ENDOWMENT TELECONFERENCED
<Bill Hearing Canceled>
+= HB 314 G.O. BONDS FOR TRANSPORTATION PROJECTS TELECONFERENCED
Moved CSHB 314(FIN) Out of Committee
+= SB 254 AK REGIONAL ECONOMIC ASSISTANCE PROGRAM TELECONFERENCED
Moved HCS SB 254(FIN) Out of Committee
HOUSE BILL NO. 314                                                                                                            
                                                                                                                                
     "An Act  providing for and  relating to the  issuance of                                                                   
     general obligation  bonds for the purpose  of paying the                                                                   
     cost  of state  transportation  projects; and  providing                                                                   
     for an effective date."                                                                                                    
                                                                                                                                
Representative Thomas  MOVED to ADOPT CSHB  314(FIN), labeled                                                                   
25-GH2041\M,  Cook,  4/5/08, as  the  work draft  before  the                                                                   
Committee.  There being NO OBJECTION, it was so ordered.                                                                        
                                                                                                                                
PETE ECKLUND,  STAFF, REPRESENTATIVE  KEVIN MEYER,  discussed                                                                   
the changes in  the bill.  He referred to a  handout entitled                                                                   
"Project Title", which describes  the changes (copy on file.)                                                                   
The new  total for the G.O  Bonds bill is $220,600,000.   Mr.                                                                   
Ecklund listed those projects added to the bill.                                                                                
                                                                                                                                
5:40:44 PM                                                                                                                    
                                                                                                                                
Mr. Ecklund listed the three items removed from the bill.                                                                       
                                                                                                                                
Co-Chair Meyer  asked if  the Gravina  Access was removed  in                                                                   
the Transportation  Committee meeting.   Mr. Ecklund  replied                                                                   
that was correct.   Co-Chair Meyer asked if  the South Denali                                                                   
Access Road project  was removed by the Senate.   Mr. Ecklund                                                                   
said it  was in  the Senate  version of  the capital  budget.                                                                   
Co-Chair Meyer reported that it  was agreed that the Northern                                                                   
Access Study should not be included in a bond package.                                                                          
                                                                                                                                
Representative Gara  asked if the Gravina Access  project was                                                                   
included somewhere else.  Co-Chair  Meyer said it was totally                                                                   
removed.                                                                                                                        
                                                                                                                                
Representative  Crawford asked about  the grant to  Anchorage                                                                   
                                                 th                                                                             
for  the  Victor  Road-Dimond  Boulevard  to  100   Avenue  -                                                                   
upgrade and  trade. Co-Chair Meyer  explained that  there are                                                                   
about 7 or 8  state roads in Anchorage that  are neighborhood                                                                   
roads now.   The City  of Anchorage has  agreed to  take over                                                                   
these  roads.     Representative  Crawford  asked   what  the                                                                   
tradeoff was.  Co-Chair Meyer  said the state would spend $14                                                                   
million  to upgrade  the roads  and the  city would  maintain                                                                   
them.                                                                                                                           
                                                                                                                                
5:44:29 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze  added that in 1990 two roads  in his area                                                                   
had a similar arrangement.                                                                                                      
                                                                                                                                
Representative  Thomas  noted $10  million  for  the Port  of                                                                   
Anchorage,  which  had been  twice  vetoed.   Co-Chair  Meyer                                                                   
explained that the  Governor felt that the project  should be                                                                   
in a road bond.                                                                                                                 
                                                                                                                                
Representative  Gara wondered what  would happen to  the Port                                                                   
of Anchorage  if it was not  funded with $10 million  in G.O.                                                                   
Bonds.  Co-Chair Meyer thought  municipal money should not go                                                                   
to this project because it is  a state project.  He requested                                                                   
testimony from  the Department  of Transportation  and Public                                                                   
Facilities.                                                                                                                     
                                                                                                                                
5:47:27 PM                                                                                                                    
                                                                                                                                
FRANK  RICHARDS, DEPUTY  COMMISSIONER  OF  HIGHWAYS &  PUBLIC                                                                   
FACILITIES,   DEPARTMENT   OF   TRANSPORTATION   AND   PUBLIC                                                                   
FACILITIES,  reported  that in  conversations  with  Governor                                                                   
Sheffield,  it was  noted  that there  were  needs for  state                                                                   
funds in  order to continue  with necessary expansions.   The                                                                   
state is  involved because the  vast majority of  cargo comes                                                                   
into this port.                                                                                                                 
                                                                                                                                
Representative  Gara said  he was just  questioning  the need                                                                   
for state money; he was not criticizing the project.                                                                            
                                                                                                                                
5:51:12 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer MOVED to ADOPT Amendment 1:                                                                                      
                                                                                                                                
     Page 2, Line 31                                                                                                            
     Delete: Access Road to Evacuation Center and                                                                               
     Insert: Access Road, Evacuation Center and                                                                                 
                                                                                                                                
     Page 3, Line 7                                                                                                             
     Delete: Shelter Cove Road                                                                                                  
     Insert: Shelter Cove, Road Construction                                                                                    
                                                                                                                                
     Page 4, Line 21                                                                                                            
     Delete: $220,000,000                                                                                                       
     Insert: $220,600,000                                                                                                       
                                                                                                                                
Vice-Chair Stoltze OBJECTED.                                                                                                    
                                                                                                                                
Mr.   Ecklund  explained   the  technical   changes  in   the                                                                   
amendment.                                                                                                                      
                                                                                                                                
Representative Hawker  MOVED to ADOPT Conceptual  Amendment 1                                                                   
to Amendment  1, to make  the same change  on line 24,  as on                                                                   
line 21.   There being NO OBJECTION, it was so ordered.                                                                         
                                                                                                                                
Vice-Chair Stoltze WITHDREW his  OBJECTION to adopt Amendment                                                                   
1.   There being NO  OBJECTION, Amendment  1 was  adopted, as                                                                   
amended.                                                                                                                        
                                                                                                                                
5:53:19 PM                                                                                                                    
                                                                                                                                
Representative Joule MOVED to ADOPT Amendment 2:                                                                                
                                                                                                                                
     Page 1, line 9:                                                                                                            
     Delete "$220,600,000" and insert "234,600,000"                                                                             
                                                                                                                                
     Page 2, line 10:                                                                                                           
     Delete "$196,600,000" and insert "210,600,000"                                                                             
                                                                                                                                
     Page 2, line 14, insert:                                                                                                   
     "Aleknagik Wood River Bridge $14,000,000"                                                                                  
                                                                                                                                
     Page 4, line 21:                                                                                                           
     Delete "$220,000,000" and replace with "$234,000,000"                                                                      
                                                                                                                                
     Page 4, line 24:                                                                                                           
     Delete "$220,000,000" and replace with "$234,000,000"                                                                      
                                                                                                                                
Vice-Chair Stoltze OBJECTED.                                                                                                    
                                                                                                                                
REPRESENTATIVE  BRYCE EDGMON, explained  that Amendment  2 is                                                                   
also a  technical  amendment.   It proposes  to fully fund  a                                                                   
bridge  that would  connect  the north  and  south shores  of                                                                   
Aleknagik.                                                                                                                      
                                                                                                                                
Co-Chair  Meyer  asked if  $14  million  is the  total  cost.                                                                   
Representative Edmonds  clarified that the total  cost is $22                                                                   
million.                                                                                                                        
                                                                                                                                
Co-Chair Chenault  asked if this  project is near  Dillingham                                                                   
or Naknek.   Mr. Edgmon explained  that it was 30  miles away                                                                   
from Dillingham.                                                                                                                
                                                                                                                                
5:55:49 PM                                                                                                                    
                                                                                                                                
ADAM  BERG,  STAFF, REPRESENTATIVE  BRYCE  EDGMON,  explained                                                                   
that the bridge has $2.2 million  in funding already secured.                                                                   
The requested  amount would complete  the project.   Co-Chair                                                                   
Meyer and Vice-Chair Stoltze recalled visiting the site.                                                                        
                                                                                                                                
5:56:59 PM                                                                                                                    
                                                                                                                                
Representative  Crawford  asked  for  information  about  the                                                                   
bridge.  Representative Edgmon  said it was a vehicle bridge.                                                                   
He  explained why  it  was needed  to  transport children  to                                                                   
school.                                                                                                                         
                                                                                                                                
Vice-Chair   Stoltze   asked   if   a   mineral   development                                                                   
controversy  was involved.   Mr. Edgmon  replied that  it was                                                                   
not.                                                                                                                            
                                                                                                                                
Representative  Nelson  recalled that  the  request has  been                                                                   
around for  a number of years.   She spoke in support  of the                                                                   
bill for various reasons.                                                                                                       
                                                                                                                                
Representative  Gara agreed that  the bridge has  been needed                                                                   
for  years.   Representative Edgmon  related further  reasons                                                                   
for the need for a bridge.                                                                                                      
                                                                                                                                
6:00:48 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  noted the  attempt to seek  a balance  in the                                                                   
G.O. Bond package.  He asked the  Committee not to accept the                                                                   
amendment.   Representative  Edgmon deferred  to the  will of                                                                   
the Committee.                                                                                                                  
                                                                                                                                
Representative Joule WITHDREW Amendment 2.                                                                                      
                                                                                                                                
Representative Joule MOVED to ADOPT Amendment 3:                                                                                
                                                                                                                                
     Page 1, line 9:                                                                                                            
     Delete "$220,600,000" and replace with "$223,100,000"                                                                      
                                                                                                                                
     Page 2, line 10:                                                                                                           
     Delete $196,600,000" and replace with "$199,100,000"                                                                       
                                                                                                                                
     Page 2, line 18, add:                                                                                                      
     "Port of Bristol Bay Dock Expansion/Repair $2,500,000"                                                                     
                                                                                                                                
     Page 4, line 21:                                                                                                           
     Delete "$220,000,000" and replace with "$222,500,000"                                                                      
                                                                                                                                
     Page 4, line 24:                                                                                                           
     Delete "$220,000,000" and replace with "$222,500,000"                                                                      
                                                                                                                                
Vice-Chair Stoltze OBJECTED.                                                                                                    
                                                                                                                                
Representative  Edgmon explained the  amendment is  for money                                                                   
that would  be used to help  fully fund the expansion  of the                                                                   
Bristol Bay dock.                                                                                                               
                                                                                                                                
Co-Chair Meyer  said there  was money  in the capital  budget                                                                   
for  this  project.   Mr.  Ecklund  agreed.   Co-Chair  Meyer                                                                   
preferred to not have this item in the bond package.                                                                            
                                                                                                                                
Representative Joule WITHDREW Amendment 3.                                                                                      
                                                                                                                                
6:05:28 PM                                                                                                                    
                                                                                                                                
Representative Thomas asked if  the Dalton Highway project is                                                                   
in the  capital budget.  Co-Chair  Meyer thought that  it was                                                                   
not  in  the  capital  budget   and  that  the  Governor  had                                                                   
requested it be in a road bond package.                                                                                         
                                                                                                                                
Mr. Richards said there was $4  million in the capital budget                                                                   
for  the Dalton  Highway.    Co-Chair Meyer  summarized  that                                                                   
there was $4 in  the Senate capital budget and  a request for                                                                   
$14 million in the G.O. bond bill.  Mr. Richards concurred.                                                                     
                                                                                                                                
Mr. Richards corrected  that it was a $5 million  project and                                                                   
was removed from the Senate version of the budget.                                                                              
                                                                                                                                
Vice-Chair  Stoltze asked  about  the language  "bikeway"  on                                                                   
page  2, line  30.    Co-Chair Meyer  asked  if  it could  be                                                                   
changed.  Mr.  Richards said the intent is  that improvements                                                                   
outside  of the paved  roadway be  included.   Representative                                                                   
Hawker offered "multi-modal pedestrian facilities".                                                                             
                                                                                                                                
Representative Gara  thought that bikeway was  appropriate as                                                                   
a tourist attraction.                                                                                                           
                                                                                                                                
6:10:50 PM                                                                                                                    
                                                                                                                                
Representative  Gara asked  about the  Ketchikan project  for                                                                   
$10 million: Harriet Hunt Lake to Shelter Cove Road.                                                                            
                                                                                                                                
REPRESENTATIVE  KYLE JOHANSEN,  explained  that  the road  is                                                                   
part of the  Ketchikan Coastal Management Plan.   It has been                                                                   
approved  by the  Forest Legacy  Program,  the Department  of                                                                   
Natural Resources,  the Ketchikan City Council,  Tongass Land                                                                   
Management  Plan, and  the Department  of Transportation  and                                                                   
Public Facilities.   It  is part  of the Ketchikan  Borough's                                                                   
20-20 plan  and has  a multi-use purpose.   It Connects  Cape                                                                   
Fox with  10 miles of  road that will  tie into 100  miles of                                                                   
logging roads.                                                                                                                  
                                                                                                                                
Co-Chair Meyer asked  if it is a state road.   Representative                                                                   
Johansen  reported that  it is  a borough  road and  accesses                                                                   
Mental Health Trust lands.                                                                                                      
                                                                                                                                
AT-EASE:       6:15:38 PM                                                                                                     
                                                                                                                                
RECONVENED:    6:27:58 PM                                                                                                     
                                                                                                                                
Representative  Hawker  noted that  the  project  was on  the                                                                   
Roads to Resources Initiative.                                                                                                  
                                                                                                                                
Co-Chair Meyer  asked about the Department of  Revenue fiscal                                                                   
note.                                                                                                                           
                                                                                                                                
JERRY   BURNETT,   DIRECTOR,   DIVISION   OF   ADMINISTRATIVE                                                                   
SERVICES, DEPARTMENT  OF REVENUE,  said the department  would                                                                   
provide the  Committee with a  debt service fiscal  note with                                                                   
annual payments of about $17, 254, 046.30.                                                                                      
                                                                                                                                
Representative  Foster MOVED to  REPORT CSHB 314(FIN)  out of                                                                   
Committee,  as amended, with  individual recommendations  and                                                                   
the accompanying fiscal notes.   There being NO OBJECTION, it                                                                   
was so ordered.                                                                                                                 
                                                                                                                                
CSHB 314(FIN) was REPORTED out  of Committee with a "do pass"                                                                   
recommendation and  with fiscal note #1 by the  Office of the                                                                   
Governor and a new fiscal note  by the Department of Revenue.                                                                   
                                                                                                                                
6:32:38 PM                                                                                                                    
                                                                                                                                

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