Legislature(1997 - 1998)

03/27/1998 08:10 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
 SENATE BILL NO. 264                                                           
                                                                               
"An Act relating to aid for municipal road maintenance;                        
and providing for an effective date."                                          
                                                                               
                                                                               
CS FOR SENATE BILL NO. 264(TRA)                                                
                                                                               
"An Act relating to aid for municipal road maintenance,                        
and to the transfer of roads to municipalities; and                            
providing for an effective date."                                              
                                                                               
                                                                               
Co-chair Pearce noted that there was a transportation                          
committee CS in members' files.                                                
                                                                               
Senator Torgerson explained that the bill would remove the                     
current municipal road maintenance office out of the State-                    
shared revenue statutes and makes it a stand-alone program.                    
The new program would adopts the same eligibility and                          
requirements as the old program.  It further asked the                         
revenue sharing for roads be increased to $1000/mile from                      
the current level.  It is the intent of the legislation that                   
the balance of approximately $4 million be put into another                    
program that would be available for the upgrade and transfer                   
of roads from State to local governments.  This would create                   
a stable funding source for the road program.                                  
                                                                               
Senator Adams said he opposed this legislation.  He did not                    
feel this would bring stability to other parts of the                          
statute.  With regards to section 4, which provided the                        
motor fuel collections would be deposited into a separate                      
account.  They would have to go back and look at the current                   
status of revenue sharing.  There is a cost of living for                      
roads and hospitals, but what is being done under this is                      
placing a flat fee of $1000/mile and that is a concern to                      
many of his rural communities.                                                 
                                                                               
Senator Torgerson advised his colleague that rural                             
communities get revenue sharing for roads also.  He                            
concurred with Senator Adams that perhaps they were taking                     
the strongest link out of what is left of revenue sharing by                   
removing this program.  However, that is the reason that it                    
is being taken out.  It is a high priority.  It is not                         
feasible to hold the entire revenue sharing program harmless                   
because this program is mixed in with it.  This program                        
needs to be removed and shored up with additional funds,                       
establish the road transfer program, which would allow local                   
governments to take over some of the roads.                                    
                                                                               
Senator Torgerson MOVED amendment #1.  Senator Adams                           
OBJECTED.  He said he did not know the impact of this                          
amendment.                                                                     
                                                                               
(Tape #103, Side A switched to Side B.)                                        
                                                                               
By a hand vote of 5 yeas (Pearce, Sharp, Donley, Torgerson,                    
Parnell) and 1 nay (Adams) the amendment was ADOPTED.                          
                                                                               
Senator Torgerson MOVED amendment #2.  Senator Adams                           
OBJECTED.  He felt it should be in the capital budget.                         
Senator Torgerson concurred that it should be in the capital                   
budget before Senator Sharp.  However, they needed something                   
to act on.  By a hand vote of 5 yeas (Pearce, Sharp, Donley,                   
Torgerson, Parnell) and 1 nay (Adams) the amendment was                        
ADOPTED.                                                                       
                                                                               
Co-chair Pearce noted for the committee that fiscal note #3,                   
Department of Transportation and Public Facilities was an                      
update for fiscal note #1.                                                     
                                                                               
Dennis Poshard, Legislative Liaison, Office of the                             
Commissioner, Department of Transportation and Public                          
Facilities was invited to join the committee.  He said the                     
STIP communities compete for funding of projects.  He                          
explained the revenue sharing of maintenance of roads and                      
noted a current cap of $3,000 depending on the                                 
appropriation.  He said 5,000 road miles currently receive                     
revenue sharing and felt this legislation would make false                     
commitments to municipalities.  He had no comments to the                      
amendments.                                                                    
                                                                               
Pat Poland, Director, Division of Municipal and Regional                       
Assistance, Department of Community and Regional Affairs                       
testified via teleconference from Anchorage.  He said the                      
department would like to see a more comprehensive program                      
and not a program where urban areas were winners and rural                     
areas were losers.  He explained a few minor technical                         
concerns and said he could get his written comments to the                     
committee.                                                                     
                                                                               
Mike Cushing, Research and Analysis, Division of Municipal                     
and Regional Assistance, Department of Community and                           
Regional Affairs was invited to join the committee.  He did                    
not have any further comments to add to Mr. Poland's                           
testimony.                                                                     
                                                                               
Jim Swing, Parks and Recreation, Matanuska-Susitna Borough                     
testified via teleconference from Mat-Su on behalf of the                      
borough administration and assembly.  He said they strongly                    
supported the bill and welcomed the reimbursement level.                       
                                                                               
Ocie Adams, member, Road Service Area Advisory Board to the                    
Matanuska-Susitna Borough testified via teleconference from                    
Mat-Su.  He also indicated they supported the bill.                            
                                                                               
Senator Torgerson MOVED CSSB 264(FIN).  Senator Adams                          
OBJECTED.   He said the bill would take money from rural                       
areas and that it belonged under the capital project.  Under                   
section 4 the 37.5% was dedicated to roads and it could have                   
a potential constitutional problem because of dedication of                    
roads.  He feels the bill will hurt rural Alaska.                              
                                                                               
Co-chair Pearce pointed out that subsistence was                               
unconstitutional, also, but that was why they were spending                    
time trying to fix it.  Senator Adams said the way to fix                      
subsistence was to vote on a constitutional amendment with                     
rural preference.                                                              
                                                                               
Senator Torgerson said the bill was not an attack on rural                     
Alaska.  He said it would reimburse $1000/mile.  It was a                      
novel concept to pay one to do something and then expect                       
that it be done.                                                               
                                                                               
By a roll call vote of 4 yeas (Pearce, Sharp, Donley,                          
Torgerson ) and 1 nay (Adams) CSSB 264(FIN) was REPORTED OUT                   
with individual recommendations and accompanying fiscal                        
notes from the Department Revenue, zero; and Department of                     
Transportation and Public Facilities, $38.5.                                   
                                                                               
Co-chair Pearce HELD SB 263 until Tuesday.  There followed                     
miscellaneous conversation regarding the committee schedule.                   
                                                                               
                                                                               
ADJOURNMENT                                                                    
                                                                               
Co-chair Pearce recessed the committee at approximately                        
11:02 a.m. until Saturday at 9:00 a.m.                                         
SFC-98 -14- 3/27/98                                                            

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