Legislature(1993 - 1994)
02/23/1993 01:30 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
February 23, 1993
1:30 P.M.
TAPE HFC 93 - 30, Side 1, #000 - end.
TAPE HFC 93 - 30, Side 2, #000 - end.
TAPE HFC 93 - 31, Side 1, #000 - #389.
CALL TO ORDER
Co-Chair Ron Larson called the meeting of the House Finance
Committee to order at 1:30 P.M.
PRESENT
Co-Chair Larson Representative Therriault
Co-Chair MacLean Representative Foster
Representative Grussendorf Representative Parnell
Representative Hoffman
Representatives Martin, Hanley, Brown and Navarre were not
present for the meeting.
ALSO PRESENT
W. Keith Gerken, Deputy Commissioner, Department of
Transportation and Public Facilities; Ron Lind, Director,
Plans, Programs and Budget, Department of Transportation and
Public Facilities.
SUMMARY INFORMATION
HB 60 FY 94 CAPITAL BUDGET
OVERVIEWS: Transportation & Public Facilities
INTERMODAL SURFACE TRANSPORTATION EFFICIENCY ACT (ISTEA)
W. KEITH GERKEN, DEPUTY COMMISSIONER, DEPARTMENT OF
TRANSPORTATION AND PUBLIC FACILITIES, provided the Committee
with handouts regarding ISTEA and its relationship to the
Department of Transportation and Public Facilities (DOTPF)
CIP request for FY 94. [Attachments #1 - #4].
Mr. Gerken provided the Committee with information regarding
ISTEA, an act which allows Alaska to put its transportation
policy into practice. Under ISTEA, state government does
not have to ask federal permission regarding roads and
ferries before decision making.
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In 1956, the federal government established a highway trust
fund. From this trust flows most funding for highway
construction in Alaska. In return, the federal government
requires maintenance of the completed projects. Highway
trust fund dollars are authorized by multi-year highway
acts, the recent of which is ISTEA.
By enacting ISTEA, the federal government mandated change in
transportation policy. It provides the opportunity to
improve how transportation decisions are made. The ISTEA
funds are divided between three programs. Mr. Gerken
explained each of the elements of the program.
* BOROUGH TRANSPORTATION PROGRAM - (thirty-five
percent)
The Borough Transportation Program builds upon the
foundation. It establishes a funding target made up of
ISTEA dollars for each borough and for the unorganized
borough. Each borough will work with local communities in
preparing a six year plan made up of ISTEA projects. These
plans provide the basis for preparing the local portion of
the CIP and capital budget request. Thirty-five percent of
ISTEA funding goes to the Borough Transportation Program and
is then distributed. The distribution is based upon
population and vehicle registrations. Each borough
automatically receives a base allocation of $350 thousand
dollars. Eighty percent of the program is designated for
individual boroughs, whereas, twenty percent of the program
is distributed on a competitive basis.
* CORE SYSTEM IMPROVEMENTS - (fifty percent)
Core highways and ferries move passengers and freight
throughout the State. The purpose of the core highway
system is to serve statewide purposes such as the long-range
movement of people and goods. Core highways and ferry
routes stretch across rural Alaska. At each community, the
core system includes the link from the airport to the
community center.
"Core" highways provide connections from: Community center
to community center; airport to community center; and ferry
terminal to community center. "Core" highway also provide
access to rural resources and connect strategic import and
export points that ship to or from national and
international markets.
* SYSTEM EXPANSION - (fifteen percent)
The purpose of the system expansion is to invest in the
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future. ISTEA provides the capability to do this while
meeting the investment needs of the existing transportation
system. ISTEA provides federal funds to address the
investment needs in the State.
Following legislative approval, ISTEA dollars can be used to
finance system expansion. However, first each of these
priorities must undergo an exhaustive assessment, as
required by federal law. A public comment and review
process helps to guide a full technical and environmental
evaluation. The purpose of this process is to carefully
assess the proposed improvements and its social and
environmental impacts.
Mr. Gerken referenced the key points of the ISTEA funding.
[Attachment #2]. The proposal calls for a federal funding
allocation for surface transportation to borough
governments. It explains the process for selecting capital
improvements to the local portion of surface transportation
systems in Alaska. The proposal affects only the funding of
capital improvements. Maintenance arrangements are not
altered by this proposal.
1. A working group was convened at the request of the
Conference of Mayors to evaluate the proposal from
DOTPF to establish a borough transportation
program.
2. The working group recommends that at least thirty-
five percent of the ISTEA funding be allocated to
local transportation improvements.
3. DOTPF should help each borough government to
prepare a multi-year transformation plan.
4. Applying thirty-five percent of the statewide
target for ISTEA funding results in a minimum
program level of $83 million annually. The figure
includes $75 million in ISTEA funding and $8
million in State match, and will change if the
statewide target for ISTEA funding changes.
5. ISTEA funding alone is inadequate to meet the
transportation needs of our State. Municipal
officials must work with state officials to
identify other sources of funding to meet those
needs.
Co-Chair Larson asked if the match listed in the Borough
Transportation Program was local or State general fund. Mr.
Gerken stated it was a state match, and would be included
with the federal monies. DOTPF would be responsible to
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provide the match funds.
Co-Chair MacLean questioned if the computation
determinations were arbitrarily agreed upon by the borough
program. She felt that snow machines and other unregistered
vehicles should be included by unorganized boroughs if that
would entitle them to a larger allocation. Mr. Gerken
explained that the current system in use is fair and easy to
understand. He reiterated that all areas begin with a base
rate of $350 thousand dollars.
Representative Hoffman asked how funding for the unorganized
boroughs would be allocated. Mr. Gerken replied those
boroughs have been a challenge to the Department. DOTPF has
provided funds to the Department of Community and Regional
Affairs (DCRA) to help identify and prioritize needs in the
unorganized boroughs.
(Tape Change, HFC 93-30, Side 2).
Representative Hoffman stressed that DOTPF has not addressed
the transportation needs in rural Alaska. Unorganized
boroughs consume over fifty percent of the State. In order
to be equitable in the negotiation process, the costs of
construction should be taken into consideration. Mr. Gerken
acknowledged that the cost of construction concern is
complicated. ISTEA provides new flexibility standards for
construction considerations. Representative Hoffman stated
the assessment process would be fair if the urban versus
rural standards were equal in the beginning.
Co-Chair Larson questioned how a local government could
exempt vehicles from being registered. He stated that
should be a source of additional revenues. Mr. Gerken
stated these rules have been determined in State statute.
There is an exemption which is based on community size and
the estimated number of vehicles.
Representative Grussendorf asked if communities in the
unorganized boroughs would receive allocations for FY 94.
Mr. Gerken noted, proposals from some of those communities
have been provided to the Department. The budget will be
amended to include those requests if they are received in a
timely manner. Mr. Gerken agreed that the process does give
the advantage to the larger communities.
Co-Chair MacLean asked the status of those boroughs which do
not have "road powers". Mr. Gerken stated in FY 94
projections, there are projects previously planned, which
will begin in unorganized boroughs. These projects are
equal to allocations given the urban areas. He stressed
that all boroughs have planning powers. In order for the
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borough to decide how they are going to spend the capital
construction dollars, they must have "road powers". Until
they have those powers they will not be able to spend the
allocated funds.
Co-Chair Larson indicated that second class boroughs have
three powers:
1. Taxation
2. Education
3. Planning and zoning.
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES (DOTPF)
CIP REQUESTS
Mr. Gerken referenced Attachment #3 which itemizes DOTPF's
funding source for budget requests including the general
fund match. The match is half of the general fund request.
The source of funds originate as follows:
* General Funds $
60,996.0
* Federal Funds
$354,917.8
* International Airport Revenue Fund $
20,666.0
* Highway Working Capital Fund $
11,700.0
* Oil and Hazardous Spill Fund $
992.0
* Vessel Replacement Fund $
6,400.0
* CIP Receipts $
200.0
RON LIND, DIRECTOR, PLANS, PROGRAMS AND BUDGET, DEPARTMENT
OF TRANSPORTATION AND PUBLIC FACILITIES, explained the
process used in calculating the State's general fund match
percentage and factors which were examined.
Mr. Gerken commented on the statewide uses of DOTPF's CIP
requests:
* General Fund match for Federal-Aid Highways
general fund allocations $23.2 million dollars.
* General Fund match for Federal-Aid aviation,
general fund dollars $5.5 million dollars.
* State equipment fleet and refurbishment
replacement program allocation provided by the
Highway Working Capital Fund which allows the
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purchase of trucks, graters and snowblowers.
(Tape Change, HFC 93-31, Side 1).
* Corps of Engineers Program allocations request for
$2.5 million dollars which provides community
match funds. Co-Chair MacLean asked the impact of
the budget cut from the original $6 million dollar
request to the Governor's requested amount of $2.5
million dollars. Mr. Gerken stated the impact
would depend upon the decisions of the Corp and
the speed in which they make those decisions.
* Annual Planning Work Program allocation request
for $550.0 thousand dollars. This is state money
accompanied with federal highway planning research
funds of $3.7 million dollars to fund planning
activities through DOTPF and the boroughs. Co-
Chair MacLean questioned if the funds would be
used for ISTEA. Mr. Gerken stated they would not.
* Statewide facilities major repair, renovation and
equipment request for $1.5 million dollars which
would fund the renovation of buildings, heat
ventilating systems, roofs and windows on DOTPF
buildings.
* Highway and aviation non-routine maintenance
capital request for $1.0 million dollars is the
emergency fund for bridges, roads, flooding and
other small emergencies which can not be elevated
to the place of receiving State emergency funds.
* Statewide advanced project definition allocation
request for $650.0 thousand dollars which would
fund CIP positions in the Department to do work
which does not currently have an authorized
position.
* Ports and harbors non-routine maintenance request
for $1.0 million dollars, an allocation for harbor
facilities which are affected by storms and
floods.
* The American Disabilities Act statewide code
compliance request for $8.0 million dollars which
addresses the highest prioritized needs identified
by the inventory of buildings complying with this
Act. Co-Chair MacLean asked if there were federal
dollars associated with compliance with this code.
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Mr. Gerken said there may be federal dollars for
undertaking the assessments.
* The U.S.G.S. Digital Mapping Program match for $30
thousand dollars will allow the State an equal
amount of money to the Geological Physical Survey
to provide additional mapping within the State.
* The Federal Transit Administration grants request
for $16 thousand dollars flow through the
Administration for capital expenditures for buying
buses.
* DOTPF maintained facilities energy code upgrade
request for $3.5 million dollars which will be
used to upgrade heating/ventilating systems, to
install more energy efficient overhead doors in
maintenance shops and place high efficiency
burners on heating equipment.
* Federal Transit Administration Metropolitan
Planning Grant request for federal dollars of
$200.0 thousand dollars all of which would go to
Anchorage for their transit planning.
* The standards manual publishing request for $80.0
thousand dollars in program receipts in order to
publish a number of standards, contract
specifications and manuals. There is a charge for
distribution of publications and that revenue is
used to produce new manuals.
* Hazardous Materials Response Contingency Fund
allocation for $250.0 thousand dollars originates
from the Spill Response Fund. The appropriation
funds an analysis of clean up requirements
throughout DOTPF facilities. Representative
Therriault disagreed with using 470 funds for this
request. Mr. Gerken did not know the appropriate
use of those funds and recommended referring that
question to the Department of Environmental
Conservation (DEC).
Co-Chair MacLean concluded the meeting and asked for
continuation of DOTPF's discussion of the CIP requests to be
scheduled for a later date.
ADJOURNMENT
The meeting adjourned at 3:05 P.M.
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