SB 54-AHFC WATER & SEWER BONDS/TRANSPORTATION  1:41:07 PM CHAIR COSTELLO reconvened the meeting and announced the consideration of SENATE BILL NO. 54, "An Act authorizing and relating to the issuance of bonds by the Alaska Housing Finance Corporation for safe and clean water and hygienic sewage disposal facility capital projects and transportation projects; providing for the repayment of the bonds and bond costs; relating to the dividend paid to the state by the Alaska Housing Finance Corporation; and providing for an effective date." She advised that SB 54 was introduced on behalf of the governor. This was the second hearing and the intention was to take public testimony and look to the will of the committee. She noted that the next committee of referral was Finance. CHAIR COSTELLO asked Stacy Barnes if she would like to comment on the bill. 1:42:02 PM STACY BARNES, Director, Governmental Relations and Public Affairs, Alaska Housing Finance Corporation, Anchorage, Alaska, deferred comment to CEO Bryan Butcher. CHAIR COSTELLO asked Mr. Butcher to give the members a brief review of the bill. 1:42:55 PM BRYAN BUTCHER, CEO/Executive Director, Alaska Housing Finance Corporation (AHFC), Department of Revenue (DOR), Anchorage, Alaska, explained that SB 54 authorizes AHFC to sell $101.63 million in tax-exempt capital project bonds to fund DEC and DOTPF federal match in the capital budget, primarily for transportation and village safe water projects. The debt service on the 20-year bonds would come out of the corporation's annual dividend to the state. He noted that the dividend has been over $40 million the last several years and has the capacity to pay between $6 million and $7 million a year in debt service. This depends on the interest rate when the bonds go to market, but the expectation is that rates will remain low. CHAIR COSTELLO asked if AHFC's AA+ bond rating is separate from the state. MR. BUTCHER agreed that was correct. CHAIR COSTELLO mentioned who was available to answer questions. 1:44:55 PM SENATOR GRAY-JACKSON noted that she received, but had not reviewed, the list of shovel-ready projects that she requested during the last hearing. CHAIR COSTELLO asked if she would like the committee to take an at-ease to look at the list before moving the bill. SENATOR GRAY-JACKSON replied it is 71 pages and she would look at it later. CHAIR COSTELLO asked Mr. Butcher to describe the process to develop the list. 1:46:04 PM MR. BUTCHER explained that AHFC informed the governor's office of the level of bonds that the corporation could fund. The governor's office submitted the list of projects to AHFC to ensure that they fit under the IRS requirements. AHFC had no input on the specific projects but the OMB director indicated they emphasized federal match that needed to occur as the best place for the funds. SENATOR GRAY-JACKSON asked what percentage of the projects are for Anchorage. MR. BUTCHER deferred the question to Rob Carpenter with DOTPF. CHAIR COSTELLO asked Mr. Carpenter to respond to Senator Gray- Jackson. She also asked what percentage of the list applies to statewide airports and whether it includes money for maintenance of airports or just construction. 1:48:16 PM ROB CARPENTER, Deputy Commissioner, Department of Transportation and Public Facilities (DOTPF), Juneau, Alaska, offered to follow up with the specific information Senator Gray-Jackson requested as well the information about aviation. He noted that Anchorage typically receives roughly 50 percent of the Statewide Transportation Improvement Plan (STIP) funding. The money for the Airport Improvement Program (AIP) comes from the Federal Aviation Administration (FAA) and it typically goes for rural airport construction work such as runway resurfacing and apron expansion, not things like plowing. 1:49:30 PM SENATOR STEVENS asked for an analysis of what the rest of the state receives after Anchorage gets 50 percent. MR. CARPENTER agreed to provide the information. SENATOR GRAY-JACKSON asked if the Port of Alaska qualifies for any of the money. MR. CARPENTER answered mostly no. These Title 23 federal highway projects are generally restricted to maintenance. Funding for the Port of Anchorage would be restricted to roadways leading to the port and potentially for freight staging areas. CHAIR COSTELLO found no further questions and solicited a motion. 1:51:45 PM SENATOR HOLLAND moved to report SB 54, [work order 32-GS1713\A], from committee with individual recommendations and attached fiscal note(s). 1:52:04 PM At ease 1:53:39 PM CHAIR COSTELLO reconvened the meeting and recognized Senator Holland. 1:53:42 PM SENATOR HOLLAND withdrew the previous motion. 1:53:51 PM CHAIR COSTELLO opened public testimony on SB 54; finding none, she closed public testimony on SB 54. 1:54:29 PM SENATOR HOLLAND moved to report SB 54, [work order 32-GS1713\A], from committee with individual recommendations and attached fiscal note(s). CHAIR COSTELLO found no objection and SB 54 was reported from the Senate Labor and Commerce Standing Committee.