04/25/2001 01:48 PM House FIN

HOUSE BILL NO. 191                                                                                                            
                                                                                                                                
     "An  Act   authorizing  financing  for   certain  public                                                                   
     transportation projects;  giving notice of and approving                                                                   
     the entry into, and the issuance  of revenue obligations                                                                   
     that   provide    participation   in,    lease-financing                                                                   
     agreements  for   those  transportation   projects;  and                                                                   
     providing for an effective date."                                                                                          
                                                                                                                                
Co-Chair Williams provided members  with a proposed committee                                                                   
substitute, work  draft, 22-LS0766\F,  Cook 4/25/01  (copy on                                                                   
file.) He noted that the proposed  committee substitute would                                                                   
provide  funding  at  approximately  the same  level  as  the                                                                   
previous year's  appropriation of $350 million  dollars. [The                                                                   
legislation uses Garvee Bonds to support highway projects]                                                                      
                                                                                                                                
KURT    PARKAN,    DEPUTY   COMMISSIONER,    DEPARTMENT    OF                                                                   
TRANSPORTATION AND PUBLIC FACILITIES  testified in support of                                                                   
the   legislation.   He   noted  that   the   Department   of                                                                   
Transportation  and Public  Facilities'  proposal would  have                                                                   
funded   $425  million   dollars  worth   of  projects.   The                                                                   
legislation proposes projects  totaling $379 million dollars.                                                                   
All  projects   included  in  the  Garvee  package   must  be                                                                   
Statewide   Transportation    Improvement   Program    (STIP)                                                                   
eligible.                                                                                                                       
                                                                                                                                
Representative   John  Davies   observed  that  projects   in                                                                   
Fairbanks  did not follow  the Borough's  priority list.  Co-                                                                   
Chair Williams  observed that  his office discussed  projects                                                                   
with  the department.  Mr. Parkan  noted  that the  Borough's                                                                   
fifth priority,  a $10 million  dollar project for  roads and                                                                   
trails, was removed from the committee substitute.                                                                              
                                                                                                                                
In response  to a  question by  Vice-Chair Bunde, Mr.  Parkan                                                                   
reviewed changes to the proposed  Anchorage projects: project                                                                   
#11 was reduced  from $500 to $420 thousand  dollars; project                                                                   
#12 was  increased from  $500 to  $700 thousand dollars;  and                                                                   
project  #17  was  increased  from  $56  million  to  $58,180                                                                   
million.  These  changes  reflect  the  actual  cost  of  the                                                                   
projects.  A   $9  million  dollar  Seward   Highway  project                                                                   
recommended   by  the  department   was  not  included.   The                                                                   
department did  not include an additional $15  million dollar                                                                   
project for Abbott  Loop North Extension, which  was included                                                                   
in the proposed  committee substitute. He did  not know where                                                                   
the  project was  on  the STIP  but  observed  that there  is                                                                   
currently an  east Anchorage study  underway to look  at this                                                                   
part  of the  city. Once  the  study is  done the  long-range                                                                   
transportation plan would be modified.  This would affect the                                                                   
outcome of the project. Projects  need to be completed within                                                                   
five years of the sale of the bonds.                                                                                            
                                                                                                                                
HB  191  was   heard  and  HELD  in  Committee   for  further                                                                   
consideration.