2008-01-17                     House Journal                      Page 1729
HB 322                                                                                                                        
HOUSE BILL NO. 322 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                
     "An Act establishing the Alaska transportation fund and relating                                                           
     to the fund; and providing for an effective date."                                                                         
                                                                                                                                

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was read the first time and referred to the Transportation and Finance                                                          
Committees.                                                                                                                     
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Zero, Dept. of Transportation & Public Facilities                                                                           
2.  Fiscal, Dept. of Revenue                                                                                                    
                                                                                                                                
The Governor's transmittal letter dated January 15, 2008, follows:                                                              
                                                                                                                                
"Dear Speaker Harris:                                                                                                           
                                                                                                                                
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                                                      
transmitting a bill establishing a state transportation fund.                                                                   
                                                                                                                                
An efficient and functional transportation system is vital to Alaska's                                                          
economy.  For the first time in Alaska's history, a reliable source of                                                          
state financing would be in place.  The bill would result in a                                                                  
predictable yearly amount that would be available to supplement state                                                           
transportation financing.  With growth over time through investment                                                             
and future contributions, the fund could help ensure Alaska's                                                                   
transportation infrastructure is adequately maintained and improved.                                                            
                                                                                                                                
Declining federal funding and the need for transportation                                                                       
infrastructure to grow our economy make establishing a transportation                                                           
fund a smart and fiscally responsible decision.  In addition, high oil                                                          
prices resulting in budget surpluses, uniquely position Alaska to utilize                                                       
our non-renewable natural resource wealth to generate renewable                                                                 
dollars for years to come.  A stable source of transportation funding                                                           
would benefit current and future generations of Alaskans alike, and                                                             
would reduce Alaska's dependence on federal aid dollars.                                                                        
Furthermore, the use of state funds would allow critical projects to be                                                         
completed much sooner than through the traditional federal highways                                                             
program.  This is because the state funded projects are not subject to                                                          
the time consuming scrutiny the federal funding process entails.                                                                
                                                                                                                                
The need for this new, permanent source of funding for transportation                                                           
could not be more evident.  Rutted pavements, delayed projects, and                                                             
urban congestion are common problems in this state.  Federal                                                                    
transportation dollars, though adequate in past decades, no longer meet                                                         

2008-01-17                     House Journal                      Page 1731
all the basic needs of the state.  Like education, transportation is a                                                          
basic government service and one that affects the daily lives of all                                                            
citizens.  Other states are enacting their second and third tier of non-                                                        
federal financing mechanisms.  It is time for Alaska to enact its first.                                                        
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
                                Sincerely,                                                                                     
                                /s/                                                                                             
                                Sarah Palin                                                                                    
                                 Governor"