Legislature(2007 - 2008)CAPITOL 17
04/01/2008 01:00 PM House TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| HB314 | |
| HB322 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 314 | TELECONFERENCED | |
| += | HB 322 | TELECONFERENCED | |
HB 314-G.O. BONDS FOR TRANSPORTATION PROJECTS CHAIR JOHANSEN announced that the first order of business would be 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 NEUMAN moved to adopt CSHB 314, Version 25- GH2041\E, Cook, 4/1/08, as the working document. There being no objection, Version E was adopted. 1:08:44 PM AVES THOMPSON, Executive Director, Alaska Trucking Association (ATA), said that the general obligation bond projects are important to the trucking industry and that ATA supports HB 314. CHAIR JOHANSEN asked if the "Parks Highway: Weight Restriction Elimination" project, referred to in HB 314, was part of Mr. Thompson's February 14, 2008, Alaska Truckers Association overview to the committee. 1:10:03 PM JAMES KING, Director, Division of Parks & Outdoor Recreation, Central Office, Department of Natural Resources (DNR), explained that the "South Denali Access Road" project consists of a road and visitor center that will allow visitors to share the Denali experience. He reported that the access road project will start from the Parks Highway, close to the South Denali view turnout at Mile 134. He described that this will be a 3.5 mile road to an alpine Visitors Center which improves access to the state park lands and provides year round interpretative and recreational opportunities for locals and visitors. He declared that this will present an area-wide economic boost. He explained that the $8.9 million bond is the start-up money for the road. The rest of the project funding will be from federal and private sources which have instructed that the state needs to start the project before they will commit any further funding. 1:14:54 PM REPRESENTATIVE DOOGAN asked if this road is on state or federal land. MR. KING replied that the road is on state land and is entirely within Denali State Park. REPRESENTATIVE DOOGAN asked if the facility will be on state land, as well. MR. KING responded that this will be a Denali State Park facility. He explained that the project is a partnership with the Matanuska-Susitna Borough and the National Park Service (NPS) and that the NPS has been very supportive with finances, planners, and funding into the future. REPRESENTATIVE DOOGAN asked if Denali National Park and Preserve will be accessible from this visitor facility. MR. KING replied that this project does not touch the National Park. He reiterated that all of this project will be within Denali State Park. 1:17:12 PM REPRESENTATIVE NEUMAN asked for an explanation of the federal matching funds. MR. KING replied that a funding package has been put together and that the $8.9 million will start the process. He explained that once this money is received, the project will qualify for NPS Centennial Initiative funds that are a dollar for dollar match. He pointed out that NPS has put a request in their capital budget to help build the facility. He reported that all three members of Alaska's congressional delegation have indicated that they will support the project if the state initially funds the project. He said that Division of Parks & Outdoor Recreation has approached grantors and private funders from the tourism industry, and several have responded that they will participate. 1:19:07 PM REPRESENTATIVE NEUMAN asked to clarify that this is not the Stampede Road or the Petersville Road. MR. KING agreed that this access road is neither of these. REPRESENTATIVE DOOGAN asked how this project came to be included in the bond package. MR. KING conveyed that the governor requested proposals for new roads, and that the division submitted this road project proposal. 1:21:26 PM REPRESENTATIVE KELLER asked if the $8.9 million is just for the road or is also for the facility. MR. KING said that the state requests that the money be dedicated for a specific part of the project. He pointed out that there is a need for environmental assessment and planning as part of the road project. He noted that any left over money will go toward construction of the visitor center. STEVE RIBUFFO, Deputy Port Director, Port of Anchorage, said that the Port of Anchorage is requesting $20 million each year for the next five years as a state contribution to the port expansion project. 1:24:07 PM CHAIR JOHANSEN closed public testimony. CHAIR JOHANSEN outlined the proposed changes in the bill to be the removal of the $15 million for "Southeast Alaska: Pavement Rehabilitation," and the addition of $45 million for "Gravina Access." He allowed that this will reflect a net increase of $30 million for the general obligation bonds requested. 1:25:02 PM REPRESENTATIVE FAIRCLOUGH said that she appreciates the discussion of the Gravina Access, but she questions how a bond package will pass when more than 30 percent of the package goes to Southeast Alaska. CHAIR JOHANSEN replied that Gravina Access is an important project, and he expressed his belief that the decisions of the state should not be made based on the number of people living within an area. REPRESENTATIVE FAIRCLOUGH agreed that large infrastructure projects should go through a process to determine the priority level. She expressed concern that a project which is 30 percent of the bond package will jeopardize the other community projects in the bond package. 1:27:37 PM CHAIR JOHANSEN offered his belief that this bill will be balanced with other state interests by the time it reaches the House Floor. REPRESENTATIVE DOOGAN expressed his concern with the legislature passing a bond package when there is so much money available. He requested more discussion of the advisability for bonding. REPRESENTATIVE NEUMAN agreed with Representative Doogan's concern for a bond package. He mentioned that his constituents feel that all the legislators are responsible for the budget. He said that it is good that this bill will go to a vote of the public. 1:31:14 PM REPRESENTATIVE FAIRCLOUGH said that she wants her constituency to know that she will put a "no recommendation" on this bill. She noted that there are billions of dollars of transportation projects and that she supports the governor's resolve to move forward. REPRESENTATIVE FAIRCLOUGH established that the "Gravina Access" project may raise federal concerns as Alaska has supported a "no build" alternative. She posed that this may initiate liabilities or ramifications from the federal government. 1:34:26 PM REPRESENTATIVE JOHNSON allowed that he also has concerns about the legislation. He expressed his belief that this bill is a budget increase, even though it is not contained in the capital budget. CHAIR JOHANSEN expressed his frustration with the administration's approach to the budget. He explained that he tries to separate operating and capital budgets. He offered his belief that the capital budget should be investments in projects that provide opportunities. He discussed the use of bonds, stating that Alaska's bond rating is improved, and that this bill is a wise use of money. REPRESENTATIVE NEUMAN moved to report CSHB 314, Version 25- GH2041\E, Cook, 4/1/08, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 314(TRA) was moved from committee.
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