04/03/2012 01:00 PM Senate TRANSPORTATION

             HJR  4-CONST. AM: TRANSPORTATION FUND                                                                          
                                                                                                                                
2:08:42 PM                                                                                                                    
CHAIR KOOKESH [announced the consideration of HJR 4.]                                                                           
                                                                                                                                
REPRESENTATIVE  PEGGY WILSON,  sponsor of  HJR 4,  introduced the                                                               
bill.  She  that  Alaska,  like  the  rest  of  the  country,  is                                                               
challenged   with  maintaining,   upgrading,  and   creating  new                                                               
transportation infrastructure.  There is  a serious  shortfall in                                                               
funding for  transportation which  is intensified by  new federal                                                               
reauthorization bill.  She voiced concern  about losing up  to 50                                                               
percent of federal funding.                                                                                                     
                                                                                                                                
She related  that in  2005, the United  States was  ranked number                                                               
one in the world for transportation;  currently it is not even in                                                               
the top  ten. She maintained  that Alaska needs to  shoulder more                                                               
of the responsibility for funding transportation infrastructure.                                                                
                                                                                                                                
She   suggested  a   simple  but   serious  change   to  Alaska's                                                               
constitution,   HJR   4,   which  would   dedicate   the   Alaska                                                               
Infrastructure Transportation  Fund (ATIF). She pointed  out that                                                               
the  drafters  of  Alaska's   Constitution  were  concerned  with                                                               
dedicated  funds  that  might  impair  future  legislatures  from                                                               
responding to evolving public needs.  However, she noted that two                                                               
dedicated  transportation funds  were grandfathered  in, one  for                                                               
highways, and one for harbors and water facilities.                                                                             
                                                                                                                                
She stated that HJR 4  would allow future legislatures to respond                                                               
to current public  needs and have the flexibility  to define what                                                               
user fees  will be dedicated  to the  fund, what projects  can be                                                               
funded, and  how the fund  would be managed. She  maintained that                                                               
the state needs  a reliable revenue stream,  independent from the                                                               
federal government.                                                                                                             
                                                                                                                                
She  listed a  three-step process  as to  how the  dedicated fund                                                               
would  be used  in conjunction  with current  funding to  improve                                                               
transportation  infrastructure. She  spoke of  her vision  of how                                                               
the proposed funding  would be capitalized with  $1 billion, with                                                               
$100,000 million  a year  to be  spent on  state-funded projects.                                                               
The money  would come from  50 percent of the  revenues collected                                                               
from the previous fiscal year, plus  a percent of market value of                                                               
ATIF, making sure  that not more than 7 percent  is averaged over                                                               
the last five years. The  legislature would also continue to fund                                                               
transportation as it is currently funded.                                                                                       
                                                                                                                                
2:14:09 PM                                                                                                                    
REPRESENTATIVE WILSON listed user fees  that would be used toward                                                               
ATIF: motor fuel tax, studded  tire tax, license and registration                                                               
fees,  and vehicle  rental  tax. A  panel  would determine  which                                                               
projects would be funded.                                                                                                       
                                                                                                                                
She  stressed that  state-funded programs  would lead  to quicker                                                               
completion of projects, saving time  and money. She noted letters                                                               
of support for  ATIF in members' packets. She  concluded that the                                                               
fund  is  needed  in  order  to  create  and  maintain  a  modern                                                               
transportation system in Alaska.                                                                                                
                                                                                                                                
2:16:41 PM                                                                                                                    
SENATOR KOOKESH closed public testimony.                                                                                        
                                                                                                                                
SENATOR HUGGINS  voiced concern about throwing  money at projects                                                               
the way funding is currently  done. He appreciated the listing of                                                               
the four elements of the plan  and the savings in time and money.                                                               
He   testified  in   support  of   the  resolution   because  the                                                               
legislature determines  the details of the  funding. He suggested                                                               
expending $200 billion to set up ATIF.                                                                                          
                                                                                                                                
2:18:25 PM                                                                                                                    
SENATOR KOOKESH recalled fighting  for a constitutional amendment                                                               
on subsistence. He said he  supports constitutional amendments in                                                               
general.                                                                                                                        
                                                                                                                                
SENATOR EGAN  moved to  report CSHJR  4(RLS) from  committee with                                                               
individual recommendations  and the attached fiscal  notes. There                                                               
being  no  objection,  CSHJR  4(RLS)  was  reported  from  Senate                                                               
Transportation Standing Committee.