02/28/2014 01:30 PM House FINANCE

HOUSE JOINT RESOLUTION NO. 10                                                                                                 
                                                                                                                                
     Proposing amendments to the Constitution of the State                                                                      
     of Alaska creating a transportation infrastructure                                                                         
     fund.                                                                                                                      
                                                                                                                                
1:43:51 PM                                                                                                                    
                                                                                                                                
DANIEL   GEORGE,   STAFF,   REPRESENTATIVE   BILL   STOLTZE,                                                                    
discussed the  changes in  the proposed  CS compared  to the                                                                    
House  Judiciary Committee  version (28-LS0133\N).  He began                                                                    
with page  1, line 14 where  the date July 1,  2014 had been                                                                    
changed to July 1, 2015.  The second change appeared on page                                                                    
2, line  2 where the  words "from  a studded tire  tax" were                                                                    
inserted following  the words "from  a tire tax."  The third                                                                    
change appeared  on page  2, line 6  where the  word "fifty"                                                                    
replaced "50." The final change  appeared on page 2, lines 7                                                                    
and 8  where the  words "studded  tire taxes"  were inserted                                                                    
following the words "tire taxes."                                                                                               
                                                                                                                                
Vice-Chair  Neuman MOVED  to  ADOPT  the proposed  committee                                                                    
substitute  for  HJR  10, Work  Draft  28-LS0133\C  (Martin,                                                                    
2/26/14).                                                                                                                       
                                                                                                                                
Co-Chair Austerman OBJECTED for discussion.                                                                                     
                                                                                                                                
1:45:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PEGGY  WILSON,  SPONSOR,  relayed  that  she                                                                    
agreed with  the changes included  in the CS. She  hoped the                                                                    
bill would report out of committee.                                                                                             
                                                                                                                                
Representative  Gara  weighed  in favor  of  protecting  the                                                                    
state's  savings and  funding  transportation  on an  annual                                                                    
basis. He surmised  that if the goal was to  get $80 million                                                                    
out of  the fund annually that  $2 billion would need  to be                                                                    
deposited into the fund. He  pointed out that in the current                                                                    
and  past  fiscal  year  the   state's  capital  budget  for                                                                    
transportation  projects  totaled  $123  million;  operating                                                                    
costs  for  the facilities  would  cost  an additional  $300                                                                    
million. He discussed the benefit  of setting aside specific                                                                    
funds  for  transportation  compared  to  the  burden  of  a                                                                    
quicker depletion of the state's  $17 billion in savings. He                                                                    
detailed  that under  the  governor's  proposal the  state's                                                                    
savings  would be  reduced to  $13 billion  or $14  billion;                                                                    
with the  transportation fund the  savings would  be further                                                                    
depleted to  $11 billion. He  noted that the  depletions did                                                                    
not  include  dealing  with deficits  in  future  years.  He                                                                    
recognized the work that went into  the bill, but he did not                                                                    
believe  it  was  fiscally  prudent.  He  trusted  that  the                                                                    
legislature  would fund  transportation  as  a priority.  He                                                                    
mentioned  competing  funding  needs   from  areas  such  as                                                                    
education,   energy   projects,   rural   development,   job                                                                    
training, the  university, and other.  He believed  the bill                                                                    
had every right to go to the House floor for a vote.                                                                            
                                                                                                                                
1:49:37 PM                                                                                                                    
                                                                                                                                
Representative  Costello thanked  the bill  sponsor for  her                                                                    
work. She  noted that the  bill was limited to  the creation                                                                    
of a  transportation fund. She  shared that if the  idea had                                                                    
been proposed five  to ten years earlier she  would not have                                                                    
been inclined  to support it  given that the state  had been                                                                    
in a  better fiscal  situation. However, she  was supportive                                                                    
of  the  fund  given  that  the  state  was  facing  tougher                                                                    
financial times  in the upcoming  decade. She  observed that                                                                    
under the current administration  there had been three miles                                                                    
of road  built. She discussed  that in good  financial times                                                                    
the  state was  spending money  to pave  and upgrade  roads;                                                                    
however, it was not investing  in new roads providing access                                                                    
to  resources. She  discussed that  the  development of  the                                                                    
state's  natural resources  would  help Alaska  financially.                                                                    
She  expressed   her  support  for  the   concept.  She  had                                                                    
participated in  the subcommittee over the  interim that had                                                                    
traveled to  various communities  to hear about  support for                                                                    
the fund.                                                                                                                       
                                                                                                                                
Co-Chair Austerman  WITHDREW his  OBJECTION to  the adoption                                                                    
of the CS. There being NO OBJECTION, it was so ordered.                                                                         
                                                                                                                                
Representative  Costello  discussed  the new  fiscal  impact                                                                    
note totaling  $1,500 from the  Office of the  Governor. She                                                                    
noted that  the cost  could increase  to $22,000  related to                                                                    
the possibility of a ballot printing requirement.                                                                               
                                                                                                                                
Vice-Chair  Neuman  MOVED to  REPORT  CSHJR  10(FIN) out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
There being NO OBJECTION, CSHJR  10(FIN) was REPORTED out of                                                                    
committee with  "no recommendation" and with  one new fiscal                                                                    
impact note from the Office of the Governor.