Legislature(2021 - 2022)BELTZ 105 (TSBldg)
03/23/2021 01:30 PM TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| SB74 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 74 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
March 23, 2021
1:41 p.m.
DRAFT
MEMBERS PRESENT
Senator Robert Myers, Chair
Senator Mike Shower, Vice Chair
Senator Peter Micciche
Senator Jesse Kiehl
MEMBERS ABSENT
Senator Click Bishop
COMMITTEE CALENDAR
SENATE BILL NO. 74
"An Act providing for and relating to the issuance of general
obligation bonds for the purpose of paying the cost of state
infrastructure projects, including construction, communications,
major maintenance, public safety, and transportation projects;
and providing for an effective date."
- MOVED CSSB 74(TRA) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 74
SHORT TITLE: G.O. BONDS: STATE INFRASTRUCTURE PROJECTS
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/05/21 (S) READ THE FIRST TIME - REFERRALS
02/05/21 (S) TRA, FIN
02/25/21 (S) TRA AT 1:30 PM BELTZ 105 (TSBldg)
02/25/21 (S) -- MEETING CANCELED --
03/02/21 (S) TRA AT 1:30 PM BELTZ 105 (TSBldg)
03/02/21 (S) Heard & Held
03/02/21 (S) MINUTE(TRA)
03/09/21 (S) TRA AT 1:30 PM BELTZ 105 (TSBldg)
03/09/21 (S) Heard & Held
03/09/21 (S) MINUTE(TRA)
03/11/21 (S) TRA AT 1:30 PM BELTZ 105 (TSBldg)
03/11/21 (S) Heard & Held
03/11/21 (S) MINUTE(TRA)
03/18/21 (S) TRA AT 1:30 PM BELTZ 105 (TSBldg)
03/18/21 (S) Heard & Held
03/18/21 (S) MINUTE(TRA)
03/23/21 (S) TRA AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
No witnesses to report
ACTION NARRATIVE
1:41:45 PM
CHAIR ROBERT MYERS called the Senate Transportation Standing
Committee meeting to order at 1:41 p.m. Present at the call to
order were Senators Shower, Micciche, Kiehl, and Chair Myers.
SB 74-G.O. BONDS: STATE INFRASTRUCTURE PROJECTS
1:42:20 PM
CHAIR MYERS announced the consideration of SB 74, SENATE BILL
NO. 74, "An Act providing for and relating to the issuance of
general obligation bonds for the purpose of paying the cost of
state infrastructure projects, including construction,
communications, major maintenance, public safety, and
transportation projects; and providing for an effective date."
CHAIR MYERS solicited a motion.
1:42:50 PM
SENATOR SHOWER moved to adopt the committee substitute (CS) for
SB 74, [work order 32-GS1716\B]. There being no objection,
Version B was adopted as the working document.
1:43:16 PM
SENATOR KIEHL moved to adopt Amendment 1 to SB 74, Version B,
[work order 32-GS1716\B.1].
32-GS1716\B.1
Marx
3/20/21
AMENDMENT 1
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: CSSB 74(TRA), Draft Version "B"
Page 1, line 10:
Delete "$303,797,585"
Insert "$190,716,492"
Page 4, line 30:
Delete "$145,168,488"
Insert "$32,649,988"
Page 5, line 5:
Delete all material.
Page 5, lines 8 - 13:
Delete all material.
Page 5, lines 16 - 26:
Delete all material.
Page 5, lines 29 - 31:
Delete all material.
Page 6, lines 2 - 4:
Delete all material.
Page 6, line 22:
Delete "$1,511,431"
Insert "$948,838"
Page 7, line 12:
Delete "$303,797,585"
Insert "$190,716,492"
Page 7, line 15:
Delete "$303,797,585"
Insert "$190,716,492"
1:43:20 PM
CHAIR MYERS objected for discussion purposes.
1:43:22 PM
SENATOR KIEHL explained that Amendment 1 would delete the
remaining projects in the GO [General Obligation] bond proposal
with federal match for [Federal Highway Administration (FHWA)]
transportation projects and [Airport Improvement Program (AIP)]
airport formula funding.
SENATOR KIEHL stated that the committee previously discussed
whether using GO bonding for projects with federal match was the
best way to fund projects since these projects are in the STIP
or AIP and will be constructed using those processes. In fact,
he could not recall any instance where the state failed to
appropriate the match. Further, using GO bonds will not
accelerate the projects. He preferred to replace these projects
with ones that will move Alaska's economy forward or address
major challenges the state faces. He argued against using the GO
bonds in this way.
1:44:56 PM
SENATOR MICCICHE stated that he could support Amendment 1 if the
projects had a very high rate of match and were limited to
highways. He predicted that if this bond package were to pass,
it will accelerate projects over and above the normal capital
budget process. While he said he struggles with the GO Bond
concept, some of the projects in SB 74 are critical ones,
including the Dalton Highway, bridges at Montana, Sheep, and
Gooses Creeks, Seward Highway and Sterling Highway, he said.
Some of these highways are severely damaged and need to be
repaired for public safety improvements. When people seek to
reduce the state's budget, they don't envision reducing funds
for transportation or public safety but rather for peripheral
things the state can no longer afford. He said he wished
Amendment 1 only pertained to [highway] projects but it does
not. Therefore, he said he cannot support Amendment 1, he said.
1:46:28 PM
SENATOR SHOWER said he echoes Senator Micciche's comments. He
stated that he considered offering a number of amendments but
did not do so due to the GO Bond source of funding.
CHAIR MYERS removed his objection.
1:48:06 PM
At ease
1:48:17 PM
SENATOR KIEHL withdrew Amendment 1.
1:48:49 PM
SENATOR MICCICHE asked if the committee substitute (CS) for SB
74, Version B incorporated the amendments the committee adopted
but it did not make any additional changes.
CHAIR MYERS agreed Version B incorporated only the amendments
the committee previously adopted.
1:49:30 PM
SENATOR SHOWER asked the record to reflect that while he
supports many of the projects in SB 74, he has concern about the
GO Bond funding mechanism. Many of his constituents have called
him about the West Susitna Access Road, which he acknowledged is
an important project that will help Alaska's economy grow and
provide high-paying, sustainable jobs. However, as previously
mentioned, the state has substantial infrastructure in need of
repairs. The cost to bond will run about $100 million at a time
when the state currently faces a deficit. Last week's testimony
demonstrated that many of these projects were already fully
funded by other funding sources, including forthcoming federal
funds, yet they were included in SB 74.
1:52:24 PM
SENATOR MICCICHE emphasized that he did not support many of the
amendments offered on SB 74, based on the GO Bond funding
source. He acknowledged that the state's infrastructure needs
are critical. He reiterated that his constituents travel on a
highway with safety issues. He surmised that when the bond
package was initially considered, the administration was unaware
of forthcoming federal COVID-19 funding or the federal
infrastructure that Congress will likely pass. This federal
funding puts the state in a very different position. While the
GO Bond proposal would accelerate some regular capital budget
projects, it's very likely that savings would not materialize by
using bonds, he said. He offered his preference to only use GO
Bonds on projects after thoroughly considering the financing
process. He maintained his view that the projects are important
ones that will enhance public safety. However, the committee
decided forthcoming federal funding will allow the state to fund
these projects without the burden of using GO bonds.
1:55:39 PM
CHAIR MYERS remarked that the legislature uses a slow and
deliberative process.
1:56:00 PM
SENATOR SHOWER offered to forward the report that highlighted
the cost of bonding to the committee. He echoed Senator
Micciche's comments that federal funding was not likely known at
the time the administration prepared the bill. He maintained his
concerns were not based on the merits of projects but rather
that other funding sources were preferable.
1:57:22 PM
At ease
1:57:45 PM
CHAIR MYERS reconvened the committee and solicited a motion.
1:58:10 PM
SENATOR SHOWER moved to report the committee substitute (CS) for
SB 74, work order 32-GS1716\B, as amended, from committee with
individual recommendations and forthcoming fiscal note(s).
CHAIR MYERS said Legislative Legal is authorized to make any
necessary technical and conforming changes.
1:58:55 PM
At ease
2:05:07 PM
CHAIR MYERS reconvened the meeting.
[The committee treated it as though the motion had been
rescinded.]
2:05:18 PM
SENATOR SHOWER stated a revised motion. He moved to report the
committee substitute (CS) for SB 74, work order 32-GS1716\B,
from committee with individual recommendations and forthcoming
revised fiscal note(s). There being no objection, CSSB 74(TRA)
was reported from the Senate Transportation Standing Committee.
2:05:36 PM
At ease
2:07:15 PM
CHAIR MYERS reconvened the meeting.
There being no further business to come before the committee,
Chair Meyers adjourned the Senate Transportation Standing
Committee meeting at 2:07 p.m.
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