Legislature(1999 - 2000)
03/07/2000 01:10 PM House TRA
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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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