04/30/2004 08:43 AM House FIN

HOUSE BILL NO. 561                                                                                                            
                                                                                                                                
     An Act  providing for  and relating  to the issuance  of                                                                   
     general obligation  bonds in  a principal amount  of not                                                                   
     more than $1,000,000 for  the purpose of paying the cost                                                                   
     of state  transportation projects; and providing  for an                                                                   
     effective date.                                                                                                            
                                                                                                                                
JAMES ARMSTRONG, STAFF TO REPRESENTATIVE  WILLIAMS, explained                                                                   
that the bill partially mirrors  HB 525 that passed two years                                                                   
ago that was a combination of  GARVEES and general obligation                                                                   
bonds.  This version  targets $1  million for  transportation                                                                   
projects in Valdez and Ketchikan.                                                                                               
                                                                                                                                
Co-Chair Harris  asked if  he was  familiar with the  federal                                                                   
revenue in GARVEES, and whether  the State currently has more                                                                   
capacity  in that  system.   Mr.  Armstrong  deferred to  Mr.                                                                   
Ottesen to respond.                                                                                                             
                                                                                                                                
JEFF OTTESEN, DIRECTOR OF PROGRAM  DEVELOPMENT, DEPARTMENT OF                                                                   
TRANSPORTATION  & PUBLIC  FACILITIES, replied  that he  would                                                                   
hesitate  to recommend  pursuing more  GARVEES revenue.   The                                                                   
President and the Congressional  leadership can't resolve the                                                                   
funding  number  for  the  new   reauthorization  level.  The                                                                   
President  is  firm  on  his  low  number,  which  would  see                                                                   
Alaska's funding decrease substantially  from current levels.                                                                   
                                                                                                                                
HB 561 was HELD in Committee for further consideration.