Legislature(1999 - 2000)

03/07/2000 01:10 PM House TRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
      HOUSE TRANSPORTATION STANDING COMMITTEE                                                                                   
                   March 7, 2000                                                                                                
                     1:10 p.m.                                                                                                  
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Representative Andrew Halcro, Chairman                                                                                          
Representative Beverly Masek                                                                                                    
Representative Bill Hudson                                                                                                      
Representative John Cowdery                                                                                                     
Representative Allen Kemplen                                                                                                    
Representative Albert Kookesh                                                                                                   
Representative Vic Kohring                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 5                                                                                                    
Proposing amendments to the Constitution of the State of Alaska                                                                 
creating a highway fund and a harbor fund.                                                                                      
                                                                                                                                
     - MOVED CSHJR 5(TRA) OUT OF COMMITTEE                                                                                      
                                                                                                                                
PREVIOUS ACTION                                                                                                                 
                                                                                                                                
BILL: HJR  5                                                                                                                    
SHORT TITLE: DEDICATED HIGHWAY AND HARBOR FUNDS                                                                                 
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 1/19/99        17     (H)  PREFILE RELEASED 1/8/99                                                                             
 1/19/99        17     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 1/19/99        17     (H)  TRA, JUD, FIN                                                                                       
 2/10/00               (H)  TRA AT  1:00 PM CAPITOL 17                                                                          
 2/10/00               (H)  Heard & Held                                                                                        
 2/10/00               (H)  MINUTE(TRA)                                                                                         
 3/07/00               (H)  TRA AT  1:00 PM CAPITOL 17                                                                          
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
REPRESENTATIVE ALAN AUSTERMAN                                                                                                   
Alaska State Legislature                                                                                                        
Capitol Building, Room 434                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Sponsor of HJR 5.                                                                                          
                                                                                                                                
DENNIS POSHARD, Legislative Liaison/Special Assistant                                                                           
Office of the Commissioner                                                                                                      
Department of Transportation & Public Facilities                                                                                
3132 Channel Drive                                                                                                              
Juneau, Alaska 99801-7898                                                                                                       
POSITION STATEMENT:   Testified on HJR 5.                                                                                       
                                                                                                                                
CLIFF STONE, Staff                                                                                                              
   to Representative Alan Austerman                                                                                             
Alaska State Legislature                                                                                                        
Capitol Building, Room 434                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Answered questions on behalf of the sponsor                                                                
regarding Amendment 2.                                                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 00-16, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
CHAIRMAN ANDREW HALCRO called the House Transportation Standing                                                                 
Committee meeting to order at 1:10 p.m.  Members present at the                                                                 
call to order were Representatives Halcro, Hudson, Cowdery and                                                                  
Kohring.  Representatives Masek, Kemplen and Kookesh arrived as the                                                             
meeting was in progress.                                                                                                        
                                                                                                                                
HJR 5 - DEDICATED HIGHWAY AND HARBOR FUNDS                                                                                      
                                                                                                                                
CHAIRMAN HALCRO announced the first order of business as House                                                                  
Joint Resolution 5, Proposing amendments to the Constitution of the                                                             
State of Alaska creating a highway fund and a harbor fund.                                                                      
                                                                                                                                
CHAIRMAN HALCRO called on the sponsor to address the proposed                                                                   
amendment, which includes the addition of a marine highway fund.                                                                
                                                                                                                                
Number 0080                                                                                                                     
                                                                                                                                
REPRESENTATIVE ALAN AUSTERMAN, Alaska State Legislature, came                                                                   
before the committee as sponsor of the resolution.  The concept of                                                              
the amendment [Amendment 1] is to look at the Alaska Marine Highway                                                             
System as part of the overall transportation system.  The                                                                       
amendment, therefore, would make sure that the tolls collected for                                                              
the marine highway would go into a fund in order to help finance                                                                
it.                                                                                                                             
                                                                                                                                
Number 0152                                                                                                                     
                                                                                                                                
REPRESENTATIVE JOHN COWDERY commented that he has heard there would                                                             
not be a fee charged for the Whittier tunnel.                                                                                   
                                                                                                                                
REPRESENTATIVE AUSTERMAN stated, according to his understanding,                                                                
there would be a toll of $15 per person, but he's not sure what the                                                             
toll would be for vehicles.  It would be the second toll in the                                                                 
state.                                                                                                                          
                                                                                                                                
CHAIRMAN HALCRO explained that any toll for the Whittier tunnel is                                                              
not scheduled to be collected until April 1, 2001.  There would not                                                             
be any toll collected for the first year.                                                                                       
                                                                                                                                
REPRESENTATIVE COWDERY made a motion to adopt Amendment 1,                                                                      
1-LS0224\A.1, Kurtz, 3/6/00.  There being no objection, Amendment                                                               
1 was so adopted, which reads as follows:                                                                                       
                                                                                                                                
     Page 1, line 2, following "highway fund":                                                                                  
          Insert ", a marine highway fund,"                                                                                     
                                                                                                                                
     Page 1, line 9:                                                                                                            
          Delete "or 19"                                                                                                        
          Insert ", 19, or 20"                                                                                                  
                                                                                                                                
     Page 2, following line 25:                                                                                                 
          Insert a new section to read:                                                                                         
                                                                                                                                
               "Section 20.  Marine Highway Fund.  (a)  The revenue                                                             
          received after June 30, 2001, that is generated from the                                                              
          operation of the Alaska marine highway system, including                                                              
          that derived from vessel operations and uses of Alaska                                                                
          marine highway system facilities, less refunds and                                                                    
          credits as provided by law, shall be placed in a marine                                                               
          highway fund.  Except as provided in (c) of this section,                                                             
          the legislature may appropriate money from the marine                                                                 
          highway fund only for the maintenance and operational                                                                 
          costs of the marine vessels and facilities of the Alaska                                                              
          marine highway system.                                                                                                
                                                                                                                                
          (b)  The legislature shall provide by law for the                                                                     
          management and investment of the marine highway fund                                                                  
          balance.  The income earned from the management and                                                                   
          investment of the marine highway fund shall be deposited                                                              
          into the fund.                                                                                                        
                                                                                                                                
          (c)  An appropriation from the marine highway fund for a                                                              
          public purpose other than one described in (a) of this                                                                
          section may be made upon an affirmative vote of                                                                       
          three-fifths of the members of each house of the                                                                      
          legislature."                                                                                                         
                                                                                                                                
CHAIRMAN HALCRO called on Dennis Poshard from the Department of                                                                 
Transportation & Public Facilities and asked him to comment on                                                                  
whether or not dedicating these funds would make it easier for the                                                              
people to accept an increase in the gas tax, as indicated by the                                                                
Administration [Annalee McConnel] at a previous House                                                                           
Transportation Committee hearing.  [See House Transportation                                                                    
Committee minutes dated 2/10/00.]                                                                                               
                                                                                                                                
Number 0300                                                                                                                     
                                                                                                                                
DENNIS POSHARD, Legislative Liaison/Special Assistant, Office of                                                                
the Commissioner, Department of Transportation & Public Facilities,                                                             
came before the committee to answer Chairman Halcro's question.  He                                                             
can't speak for Annalee McConnel [Director, Office of Management &                                                              
Budget, Office of the Governor], but she mentioned at an earlier                                                                
House Transportation Committee hearing that the Administration                                                                  
would consider a constitutional dedication, if it was used as a                                                                 
means to make an increase in the gas tax "palatable."  Ms. McConnel                                                             
also mentioned that the Administration is concerned about raising                                                               
the expectations of the people for a certain level of funding for                                                               
harbor and road maintenance and service, while at the same time the                                                             
Department of Transportation & Public Facilities continues to                                                                   
receive budget cuts.  He cited that the department received a $3.7                                                              
million cut for maintenance last year, and is looking at further                                                                
cuts this year.  Mr. Poshard further indicated that the department                                                              
is not concerned about whether or not these dedicated funds are in                                                              
statute or in the constitution, for the receipts would be far short                                                             
of the annual costs to maintain roads and/or harbors throughout the                                                             
state.  The same would be true for the marine highway fund as                                                                   
presented in Amendment 1; the receipts would be far short of what                                                               
is needed to run the Alaska Marine Highway System on an annual                                                                  
basis and would still require additional general fund                                                                           
appropriations in order to maintain current levels.  The                                                                        
department, therefore, really doesn't have a preference.  In terms                                                              
of the "big picture," the comments made by Ms. McConnel still hold                                                              
true.                                                                                                                           
                                                                                                                                
Number 0608                                                                                                                     
                                                                                                                                
CHAIRMAN HALCRO said he thinks that this issue comes down to the                                                                
saying of, "What comes first?  The chicken or the egg."  This                                                                   
committee, he said, has dealt with the transportation aspects of                                                                
this resolution; he is ready to move it forward.                                                                                
                                                                                                                                
Number 0629                                                                                                                     
                                                                                                                                
REPRESENTATIVE BILL HUDSON expressed that he has felt from the                                                                  
beginning that a dedicated harbor fund, coupled with an increase in                                                             
the motor fuel tax, is a legitimate item to consider, especially                                                                
given the current revenue imbalance(s).  He's fully aware of how                                                                
expensive gas is in the state, but the committee ought to be                                                                    
considering the entire picture, which includes raising the motor                                                                
fuel tax.  He does not have a problem with placing before the                                                                   
people the establishment of a constitutionally dedicated fund for                                                               
roads, harbors and ferries, but he's sorry that the committee has                                                               
uncoupled the motor fuel tax component.  He said, "Twenty-seven                                                                 
million dollars is twenty-seven million dollars."                                                                               
                                                                                                                                
Number 0784                                                                                                                     
                                                                                                                                
REPRESENTATIVE ALLEN KEMPLEN stated the resolution seems to be more                                                             
balanced by including various transportation facilities, but it                                                                 
still seems to be missing a piece - public transit systems.                                                                     
                                                                                                                                
REPRESENTATIVE KEMPLEN proposed to delete the word "and" and to                                                                 
include the language, ", highways and public transit systems,"                                                                  
after the word "roads", on page 2, line 2, of the resolution                                                                    
[Amendment 2].                                                                                                                  
                                                                                                                                
CHAIRMAN HALCRO asked the sponsor whether he has any objection to                                                               
the proposed amendment [Amendment 2].                                                                                           
                                                                                                                                
Number 0921                                                                                                                     
                                                                                                                                
CLIFF STONE, Staff to Representative Alan Austerman, Alaska State                                                               
Legislature, came before the committee to testify on the proposed                                                               
amendment [Amendment 2].  In discussions with Representative                                                                    
Austerman, the addition of the marine highway fund would take care                                                              
of the public transit concerns discussed at an earlier House                                                                    
Transportation Committee hearing.  The public transit systems, he                                                               
said, do not pay a tax, so he doesn't believe that the proposed                                                                 
amendment would "cloud" this resolution.                                                                                        
                                                                                                                                
Number 0976                                                                                                                     
                                                                                                                                
CHAIRMAN HALCRO pointed out that the language in this resolution                                                                
indicates the legislature "may," not "shall," appropriate money                                                                 
[page 2, line 1, of the resolution].  At the end of the day, he                                                                 
said, the power of appropriation still rests with the legislature,                                                              
which may mean a grant to communities in order to buy additional                                                                
buses, for example.                                                                                                             
                                                                                                                                
MR. STONE noted that this resolution could potentially create                                                                   
funding for public transit systems to leverage federal dollars, for                                                             
example.  He cited that when the public transit system in Kodiak                                                                
ran out of money they sought state dollars in order to match                                                                    
federal dollars.  This resolution, therefore, might help in those                                                               
situations.                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY objected to the proposed amendment                                                                       
[Amendment 2]; he thinks it would "cloud" the issue.                                                                            
                                                                                                                                
A roll call vote was taken.  Representatives Kohring, Masek,                                                                    
Halcro, Kemplen, Kookesh and Hudson voted "yea."  Representative                                                                
Cowdery voted "nay."  By a vote of 6-1, Amendment 2 was so adopted.                                                             
                                                                                                                                
REPRESENTATIVE HUDSON made a motion to move HJR 5, as amended, out                                                              
of committee with individual recommendations and attached fiscal                                                                
notes; he asked unanimous consent.                                                                                              
                                                                                                                                
REPRESENTATIVE BEVERLY MASEK objected to the motion; she simply                                                                 
does not support the legislation.                                                                                               
                                                                                                                                
Number 1192                                                                                                                     
                                                                                                                                
REPRESENTATIVE VIC KOHRING stated he appreciates the efforts of the                                                             
resolution, but he is concerned that it would encourage more                                                                    
taxation, as indicated in the sponsor statement.  The sponsor                                                                   
statement reads, "By establishing a dedicated fund, Alaska's                                                                    
citizens might be more inclined to accept an increase in the                                                                    
highway and marine fuel tax ..."  He thinks that there should be                                                                
greater cuts and reforms to the budget as opposed to encouraging                                                                
more taxation.                                                                                                                  
                                                                                                                                
Number 1254                                                                                                                     
                                                                                                                                
CHAIRMAN HALCRO expressed that the sentence Representative Kohring                                                              
referenced in the sponsor statement needs to be completed.  It                                                                  
reads, "By establishing a dedicated fund, Alaska's citizens might                                                               
be more inclined to accept an increase in the highway and marine                                                                
fuel tax, if they knew the money would be spent specifically on the                                                             
maintenance of our highways and harbor facilities."  In a time of                                                               
decreasing funding, he thinks, that this is a necessity in order to                                                             
show the people how these revenues are being used.  In other words:                                                             
Why they are being collected?  How they are being collected?  Where                                                             
they are going.  He said, "I think we'll get more participation and                                                             
more understanding of the state budget."                                                                                        
                                                                                                                                
A roll call vote was taken.  Representatives Hudson, Halcro,                                                                    
Kemplen and Kookesh voted "yea."  Representatives Kohring, Masek                                                                
and Cowdery voted "nay."  By a vote of 4-3, CSHJR 5(TRA) so moved                                                               
from the House Transportation Standing Committee.                                                                               
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
CHAIRMAN HALCRO called for a brief at-ease in order to prepare for                                                              
an overview on transportation taxation issues.                                                                                  

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