Legislature(2011 - 2012)BUTROVICH 205
02/22/2011 01:00 PM Senate TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| SB77 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 77 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 77-APPROP.: PUBLIC TRANSIT PROJECTS
1:03:16 PM
CHAIR KOOKESH announced the consideration of SB 77 and asked for
a motion to adopt the proposed committee substitute (CS).
1:03:21 PM
SENATOR THOMAS moved to adopt work draft CS for SB 77, labeled
27-LS0348\E, as the working document. There being no objection,
version E was before the committee.
1:03:49 PM
JEFF ROGERS, staff to Senator Ellis, sponsor of SB 77,
introduced the bill speaking to the following sponsor statement:
Senate Bill 77 provides three million dollars in
matching funds to support community transit projects.
Alaska is one of only three states that does not
provide operating support for public transit, shifting
the entire burden to local governments and non-profits
to partner with the federal government to provide
these services. In too many cases, local transit
agencies must turn down federal funding because they
cannot meet a required matching component. Increasing
fares and diminishing service routes have the greatest
impact on Alaska's most vulnerable citizens, making it
more difficult for seniors to get to health care
providers, for workers to get to jobs, and for
students of all ages to get to school.
The State of Alaska currently provides direct general
fund matching assistance for other modes of
transportation, including highways, aviation, and
harbors. Annual federal funding available to Alaska
for transit assistance varies from year-to-year, but
averages nine million dollars or more. In many cases,
Alaska is not capturing these federal funds due to
insufficient matching funding. State funds to help
meet the match requirement would put public and
community transportation providers on a parity level
with other federal and state "partnerships" that
provide transportation for Alaskans.
Senate Bill 77 appropriates three million dollars to
the Alaska Department of Transportation and Public
Facilities to award to community transit providers
through a competitive grant process, with a required
50 percent match requirement )in kind or cash). Senate
Bill 77 is a legislative priority for the Municipality
of Anchorage, the Alaska Mental Health Trust
Authority, the Alaska Mobility Coalition, the
Governor's Council on Disabilities and Special
Education, and the Alaska Commission on Aging.
MR. ROGERS directed attention to an article from the Anchorage
Daily News (ADN) that talks about the need for more buses and
drivers because it's currently very difficult to get around
Eagle River. This isn't an isolated example, but it highlights
that public transit in the state is under threat as local
communities make difficult choices about where to spend limited
tax dollars. He noted that the bill was the second of three
recommendations that came out of the Governor's Coordinated
Transportation Task Force report. Any public transportation
entity, including water and air, would qualify for the funding,
he said, but state projects are specifically excluded.
MR. ROGERS directed attention to a handout that highlighted the
benefits of public transit such as $1 invested in public transit
yields $3.20 in business sales; $1 million invested in public
transit brings 36 fulltime sustainable jobs; using public
transit can save an individual $9,000 per year; and one person
switching to public transit can save 20 pounds of carbon
emissions per year. A Dittman survey indicates that only three
percent of Alaskans believe that public transit is not important
at all; 88 percent believe that the state should provide a match
when federal funds are available. The bill has support from the
Alaska Municipal League, the Governor's Coordinated
Transportation Task Force, the Alaska Mobility Coalition, the
Alaska Mental Health Trust Authority, the Alaska Commission on
Aging, the Alaska Center for the Environment, the Municipality
of Anchorage, the Mat-Su Borough, and senior groups statewide.
1:09:03 PM
MR. ROGERS explained that the CS makes the following changes:
The word "operating" was removed from the bill to allow maximum
flexibility for local communities to tell DOTPF in a competitive
grant process about their real needs. Language has been added
that says that the state match cannot be more than 50 percent.
Language has been inserted stating that the legislative intent
is that the appropriation will be allocated to achieve a
statewide balance between urban and rural areas. It is not
dependant on ridership.
MR. ROGERS noted that page XI of the Governor's Coordinated
Transportation Task Force report contains language about making
specific state funds available for public transportation
projects and providers, which can match federal funds, during
the annual appropriation process. On page 10 the report
highlights that the lack of specific state funding for operating
transit systems is an exacerbating factor in this state.
According to a 2008 report from the U.S. DOT, state funds
support about 20 percent of the total public transit resource
for operating and capital expenditures nationally, but the State
of Alaska support is zero. Alaska is one of three states that do
not provide regular annual operating support for public transit
projects.
The report further points out, on page 11, that because Alaska
provides no specific funding for operating expenses, individual
communities and non-profit entities must work to secure federal
funding for operating expenses.
Recommendation II of the CTTF is for the state to make specific
state funds available to support operating expenses for public
transportation projects and providers given the state's need to:
· Secure all or a significant share of the available federal
funding.
· Support the high cost of operating public transportation
systems and the connectivity between them.
· Motivate local leaders to pursue coordination of public
transportation services for local residents.
1:12:54 PM
MR. ROGERS highlighted that a group of Homer residents is
working to make public transit happen in that community and all
they need from the state is money to meet the federal match.
Likewise, the Juneau Chamber of Commerce has indicated that it
recognizes the importance of public transit. We'll have a winner
on our hands if more chambers, environmental groups, and seniors
groups agree that this is a good idea, he concluded.
1:14:15 PM
DAVID LEVY, Executive Director, Alaska Mobility Commission,
stated that AMC supports this bill as a way to partner with the
state, not as a handout. Local communities, non-profits, tribes,
and the federal government all invest in public transportation
and it's time for the State of Alaska to step up and be a
partner.
1:15:13 PM
SENATOR MENARD commented that she's pleased that the Governor's
task force was involved because this assures her that the
Governor is on board. She commented that she would think that
this would create more than just 36 jobs.
MR. ROGERS explained that the number came from the American
Public Transit Association. It means 36 jobs for every $1
million the state puts in and 36 jobs for every $1 million in
federal funding. This could be as much as $10 million to $12
million from the federal government, which could mean several
hundred jobs. He clarified that while the bill comes directly
out of the Governor's Coordinated Transportation Task Force
report, neither the Governor nor the administration has weighed
in on the bill.
1:18:00 PM
SENATOR THOMAS posited a situation in which three organizations
applied for and were granted $1 million each from the $3 million
appropriation. He asked how the initial grantees would backfill
their operating budgets the following year if six organizations
applied for the funds and the appropriation was still just $3
million. Each applicant would then only receive $500,000. He
pointed out that if it was capital money it would be there for
capital projects and the various entities would accept that they
received a one-time grant and they might not receive it the
following year. He opined that this bill builds anticipation for
operating funds.
1:20:12 PM
MR. LEVY said DOTPF has a competitive grant process for federal
money in place and communities have to ensure that they have
certain resources to qualify. The sponsor envisions a similar
process for the $3 million appropriation and if the state has
less money to provide in subsequent years, that's the way it is.
Local communities have gotten nothing in the past and if
resources become scarce the local communities will need to work
that out accordingly.
SENATOR THOMAS clarified that his concern was that the $3
million appropriation would theoretically be split among more
entities each year, and it's operating money.
MR. ROGERS said it's a good point and they would take it into
consideration, but he agrees with Mr. Levy that local
communities get nothing now and realize that there will be
competition in the future.
SENATOR MENARD encouraged the sponsor to get the administration
on board sooner rather than later and to change the slide to
show, without doing math, how many jobs would result.
1:24:31 PM
JEFF OTTESEN, Director of Program Development, Department of
Transportation and Public Facilities (DOTPF) informed the
committee that he oversees the transit staff for DOTPF and that
he chaired the first and second iterations of the task force. He
said the bill gives DOTPF a great deal of latitude and they
would put this to good use if the bill were to pass.
1:25:27 PM
SENATOR THOMAS asked Mr. Ottesen to comment on the entities that
have indicated need.
MR. OTTESEN said there is a demonstrated need in the senior
population, the various disabled populations, low income people,
and the unemployed. They all need transit. He was surprised to
learn that 75 percent of the employees at the local Fred Meyers
store rely on public transit, but this isn't unique. Senior
centers statewide, fixed route transit operators in many
communities, and non-profit social service agencies serve a wide
variety of customers.
1:27:30 PM
KATHY WASSERMAN, Executive Director, Alaska Municipal League,
stated support for SB 77. There is a need in this state to not
only provide but also maintain jobs, and without transit systems
many people have no way to get to work. This is a win-win idea
because it requires a match and the municipalities support it
fully.
1:29:59 PM
CONNIE SIPE, Executive Director, Center for Community, explained
that when Sitka received federal money for public transit
several years ago, the Center for Community was asked to become
the managing agency. As required by law, CFC operates a
coordinated public transit system. They coordinate with the
Sitka Tribe of Alaska to drive the buses and Southeast Senior
Services for Care-A-Van rides for anyone who has a disability.
The Center for Community brings about $616,000 in federal money
to Sitka and they raise local in-kind match that's between
$380,000 and $400,000. When the tribe applied for and received a
direct federal grant, a third transit route was opened. The
three entities each own vans and buses and they use them
together. SB 77 would give CFC the opportunity for a cash match
compared to the current in-kind match, which would provide an
opportunity for expanded service. While there's been great
support, operating capital and match funds have been hard to
come by, she said.
SENATOR MENARD commented that she likes the concept of the bill
and she can't understand the current trend to turn back money
from the federal government.
1:36:23 PM
DOUG BRIDGES, Southeast Senior Services, Catholic Community
Services, stated support for SB 77. He informed the committee
that Catholic Community Services is the complementary para-
transit provider in Sitka, Ketchikan, and Juneau and they also
provide senior transportation in smaller communities. Every year
they provide over 85,000 rides. He said he also wants to remind
the committee about the importance of transit for economic
development and tourism. It is time for the state to demonstrate
its support for transit in communities, he said. Without
question, the senior population is growing and if the state is
willing to make this commitment it will help keep seniors in
Alaska and in smaller rural communities in particular. He noted
that Catholic Community Services is looking to help develop
transit systems in communities on Prince of Wales Island.
Currently the assets are there to develop transit and there is
interest. Interest from the state would assist this effort.
1:40:18 PM
CHAIR KOOKESH closed public testimony and asked the will of the
committee.
SENATOR MENARD moved to report SB 77 from committee with
individual recommendations and attached fiscal note(s).
CHAIR KOOKESH announced that without objection, CSSB 77(TRA)
moved from the Senate Transportation Standing Committee.
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