Legislature(2013 - 2014)BARNES 124
02/26/2013 01:00 PM House TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| HB109 | |
| HJR10 | |
| HB123 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 109 | TELECONFERENCED | |
| *+ | HJR 10 | TELECONFERENCED | |
| *+ | HB 123 | TELECONFERENCED | |
| + | TELECONFERENCED |
HJR 10-CONST. AM: TRANSPORTATION FUND
[Contains discussion of HB 123.]
1:23:36 PM
VICE CHAIR ISAACSON announced that the next order of business
would be HOUSE JOINT RESOLUTION NO. 10, Proposing amendments to
the Constitution of the State of Alaska creating a
transportation infrastructure fund.
1:23:42 PM
REPRESENTATIVE P. WILSON, testifying as sponsor of HJR 10, began
by explaining the reason the state should create an Alaska
Transportation Infrastructure Fund (ATIF). She stated that in
FY 14, 79 percent of Alaska's transportation funding will be
derived from the federal government, which is reduced from 84
percent of federal funding for transportation in FY 10. The
state currently has $20 billion in backlog for transportation
projects as well as $700 million in deferred maintenance
projects. The state cannot even keep up with maintenance needs
let alone its other transportation needs. She reported that the
federal government has passed a new two-year highway bill, MAP
21. The overall federal funding remains consistent with the
Federal Highway Administration's (FHWA) Safe, Accountable,
Flexible, Efficient Transportation Equity Act: A Legacy for
Users (SAFETEA-LU) funding; however, funding for roads not on
the national highway program has been cut by 50 percent. Alaska
only has eight roads on the national highway program - the least
in the nation - which means that Alaska will see substantially
less funding for borough or city roads, she said. This will
happen since categories of funding have been reduced and the
FHWA is much more restrictive than in the past. In fact,
Alaska's U.S. Congressional delegation has told the legislature
that Alaska needs to rely less on the federal government and
should start shouldering some of the burden of improving its
transportation infrastructure. Federal funding has been
diminishing in many other areas, which translates into the
general fund dollars also shrinking, making every department's
portion less, as well. This resolution is about meeting the
ever growing transportation needs. She asked how Alaska will
keep up when it cannot even keep up with its transportation
maintenance, let alone financing new roads.
1:26:32 PM
REPRESENTATIVE P. WILSON related that over the past four years
this transportation committee has listened to the DOT&PF,
grassroots organizations, and transportation companies to
identify challenges in transportation in Alaska's geographically
diverse state. This committee traveled to villages and viewed
rural airports and rode Alaska's urban highways to see the
challenges with respect to safety and deferred maintenance.
This committee heard from the Alaska Municipal League (AML) and
the Matanuska-Susitna Borough (MSB), who have teamed together to
contract an independent study on the fiscal challenges of
transportation. This committee has heard from the National
Conference of State Legislatures (NCSL) to hear solutions other
states have implemented to address their transportation
problems. She pointed out that Larry Persily, Federal
Coordinator for Alaska Natural Gas Transportation Projects, has
put together a list of all the transportation funding options
available to address the fiscal shortfalls of our long range
transportation plan and his list is in members' packets. The
culmination of all those hours of committee hearings, travel,
and research has resulted in a three-part solution.
1:27:53 PM
REPRESENTATIVE P. WILSON summarized the three part solution:
One, the legislature should reinstate the dedicated
transportation fund; in other words pass the Alaska
Transportation Infrastructure Fund. Two, the legislature should
maintain Alaska's existing transportation funding by maintaining
its operational and capital budget and address the deferred
maintenance backlog. Three, the DOT&PF should execute more 100
percent state-funded projects rather than using federal funds.
She clarified that state-funded projects do not have to follow
the highly constrictive and lengthy Federal Highway
Administration (FHWA) procedures which are often expensive and
time consuming. With state-funded projects, Alaska's
constituents will see the direct benefits. For example, state
funds were used to construct the Elmore Road extension in
Anchorage, which was completed in three years rather than the
ten years it normally would have taken under federal funding
processes [FHWA]. This resolution, HJR 10, is not intended to
diminish the state's partnership with the federal government,
but its goal is to create a dedicated revenue stream in addition
to the capital projects to provide for transportation needs.
She emphasized that this fund is not intended to supplant
capital budget funds. Additionally, the ATIF will grow as the
investment returns on the fund compound.
1:29:51 PM
REPRESENTATIVE P. WILSON related the endowment would initially
be seeded with $2 billion [in general fund appropriation]. In
addition to the investment returns of the endowment, HJR 10 will
require revenues from fuel taxes, the Division of Motor
Vehicle's fees, taxes on tires, drivers' license fees, fees for
identification cards, and motor vehicle rental taxes to feed the
fund. The ATIF can expect to generate approximately $86 million
in the first year and $133 million the second year, and will
increase by about $4 million each subsequent year. She referred
to a spreadsheet in members' packets developed by the
Legislative Finance Division that estimates the [ATIF] fund
balance and the amount that is projected to be available each
year based on provisions of the enabling legislation.
1:30:45 PM
REPRESENTATIVE P. WILSON said historians have reported that the
drafters of Alaska's Constitution were concerned that dedicated
funds would impair future legislatures from responding to
evolving public needs. Thus the drafters created two dedicated
funds: one for highways and one for water and harbors. The
public's need for dependable and efficient transportation hasn't
changed since the constitution was written; instead, the needs
have only grown. An excerpt from the speech Governor Hickel
gave for his State of the State address almost twenty years ago
demonstrates that a dedicated transportation fund is not such a
radical a proposal to consider. She quoted Governor Hickel as
saying, "Over half the states already have one. Alaskans will
receive more stable service levels with a dedicated revenue
stream and if new revenues are needed, Alaskans will be assured
that any new transportation fees will go to transportation."
She urged members that Alaska needs to take action now. The
future of the economic and social well-being of Alaska's
citizens is critically dependent on a reliable transportation
system. This change to Alaska's Constitution would allow a
reinstatement of the dedicated transportation fund is needed to
create a modern and reliable transportation system for Alaska.
Transportation investment creates a competitive environment
which would attract additional economic investment to grow the
general fund, she said. This resolution is not the enabling
statute that will define how the fund will be managed, how the
funds will be distributed, or who the funds will receive the
funds. She concluded by reminding committee members that this
resource, [the ATIF] will allow the public to vote on recreating
the ATIF. She respectfully requested the committee move HJR 10
today.
1:32:52 PM
VICE CHAIR ISAACSON said he appreciated the fact that Chair
Wilson has been working on a dedicated transportation and he is
delighted to help move HJR 10 forward. He recalled the Division
of Motor Vehicles (DMV) will be funded such that it will not
diminish the fund, but will help reduce general fund
expenditures.
REPRESENTATIVE P. WILSON responded that the DMV currently is
funded through the receipts it receives and [the resolution or
bill] will not change the funding mechanism. In fact, the
funding mechanism for fees and taxes already designated will
remain the same, including fees for specialized license plates
or airplane fuel taxes, she said.
1:34:24 PM
VICE CHAIR ISAACSON understood [the ATIF] is not just to provide
for maintenance and operations (M&O) but will connect Alaska's
communities to each other.
REPRESENTATIVE P. WILSON agreed. She explained that she hoped
[the ATIF] would make a big difference to the economy of the
state. She offered her belief that Alaska currently does not
have enough transportation infrastructure in the state. Thus,
by using the fund she hoped many Roads to Resources (R2R)
projects would be finished and these projects will connect
communities to one another.
VICE CHAIR ISAACSON remarked the ATIF would also possibly fund
Revised Statute 2477 rights-of-way trails (R.S. 2477).
1:35:02 PM
REPRESENTATIVE KREISS-TOMKINS asked for the legal relationship
between the HJR 10 and HB 123. He understood HJR 10 is
necessary for the bill to take place and if the resolution
passes the legislature and the voters, the [ATIF] fund would be
ready to go.
REPRESENTATIVE P. WILSON answered yes; but clarified that HB 123
is the enabling legislation that provides the framework and HB
122 would appropriate the $2 billion into the endowment fund.
1:36:13 PM
AVES THOMPSON, Executive Director, Alaska Trucking Association,
Inc. (ATA) stated that the ATA is a statewide organization
representing the interests of its nearly 200 member companies
from Barrow to Ketchikan. He said that freight movement
represents a large chunk of Alaska's economy and impacts all of
us each and every day. He also said, "The simple truth is, that
if you got it a truck brought it." One of ATA's top priorities
is to establish a state transportation fund to invest state
dollars in our transportation systems. Trucks rely on the road
system to deliver the goods to ensure a safe and productive
transportation system and it is necessary to fund road
improvements.
MR. THOMPSON said that thousands of truck drivers are on
Alaska's highways every day and it's important to keep their
workplace safe and productive. Thus ATA supports a state funded
transportation program that will fund Alaska's highway projects
over and above current capital expenditure levels. He
understood he ATIF would also allow Alaska to focus Alaska's
federal dollars on the National Highway System (NHS) in Alaska.
He identified these connecting routes as ones that carry the
most traffic and freight on highways in Alaska. The state has
heard repeatedly that the Federal Highway Administration funding
(FHWA) will be reduced in the near future. Alaska's network of
highways allow for safe and efficient movement of more than
62,000 tons of freight each day and Alaska needs to continue to
provide a reliable and predictable funding stream to support
this system. A number of mega projects are on the horizon that
will require a dependable system of freight corridors to
maintain to support and maintain the flow of equipment that
Alaskans will need. The ATIF will help provide the necessary
funding for these roads and highways and will help meet local
project needs. He stated that HJR 10 will put a vote before the
people to give voters a chance to decide on whether to create a
dedicated transportation fund. Transportation user fees and
taxes are much easier to pay when they are used to build and
maintain Alaska's highway system. He concluded by stating that
ATA supports HJR 10. He urged the committee to move this
resolution forward.
1:39:04 PM
BARBARA HUFF TUCKNESS, Director, Teamsters Local 959, stated the
Teamsters Local 959 [Teamsters] consists of 7,000 members that
strongly support HJR 10. She said that the constitutional
amendment is long overdue. Additionally, she added the
Teamster's support for HB 123, which ties the package together.
She pointed out that the Teamsters represent members who work in
the trucking industry, and other industries, including health
care, mining, and telecommunications with the exception of
tourism and fisheries. She indicated Alaska has experienced a
lack of road systems and timeliness in receiving goods is
important. She stated that some of you have had my boss in your
office and heard him ask, "When's the last major road
construction project that you've seen in the state?" She
recalled that the answer goes back to the Pogo mine when former
Governor Steve Cowper was in office. The Teamsters hope this
constitution amendment will move forward. It puts in place a
system that takes away Alaska's dependence on federal funding.
She suggested that U.S. Congressman Don Young has worked very
hard to secure federal funding for Alaska. The Teamsters
believe it's time the state prepares for its own needs. Alaska
should move forward with its own transportation projects,
whether they are new roads or maintenance of existing roads.
She reiterated Representative P. Wilson's plan for cost savings
by using state dollars on projects instead of federal [FHWA]
dollars. In fact, state dollars have the ability to go farther
than federal funding since Alaska doesn't have the constraints
attached to its funding as does federal funding. She urged
members to support HJR 10.
1:42:20 PM
JOHN MACKINNON, Executive Director, Associated General
Contractors of Alaska (AGC-AK), stated that the AGC-AK is a
construction trade association comprised of 650 businesses in
Alaska. He related that a state-funded transportation program
is an essential element. He said his comments are relevant to
both HJR 10 and HB 123. He thanked Chair P. Wilson for her
support and persistence in pursuing this effort. He recalled
this is the third or fourth year she has pursued a dedicated
transportation fund. He acknowledged that Chair Wilson is as
passionate about this issue as are many of his members. He
related that he speaks from a position of knowledge and
experience. He previously served as a deputy commissioner of
DOT&PF in 2003-2007 and for the past five years has served as
the executive director of AGC-AK. He related he has a good
understanding of the current transportation program, the federal
program, the state appropriation process, the transportation
priorities, and problems and needs of the state. He highlighted
the important aspects of the ATIF, including that it would
provide substantial state funding to adequately address the
needs of Alaska; a user fee program; and in HB 123,
prioritization of projects based on need and not politics. The
goal of a state-funded program is to increase the level of
funding for transportation projects to supplement the declining
federal program. A regular source of state funding allows
alternatives to the federal program. Prior testifiers have
indicated state dollars go further than federal dollars, he
said. He offered his belief that this is not an exaggeration.
He explained that the DOT&PF routinely estimates a federal
dollar being worth about 75 cents compared to a state dollar.
He offered his support for HJR 10 and HB 123.
1:45:02 PM
VICE CHAIR ISAACSON, after first determining no one else wished
to testify, closed public testimony on HJR 10.
1:45:17 PM
REPRESENTATIVE FEIGE moved to report HJR 10 out of committee
with individual recommendations and the accompanying fiscal
note. There being no objection, HJR 10 was reported from the
House Transportation Standing Committee.
VICE CHAIR ISAACSON returned the gavel to Chair P. Wilson.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 109 letter of support Homer Electric Association.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 109 |
| HB 109 Michael G Wiley Bridge Background Material.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 109 |
| HB 109 Michael G Wiley Bridge Sponsor Statement.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 109 |
| HB 109.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 109 |
| HB 109 support letters.msg |
HTRA 2/26/2013 1:00:00 PM |
HB 109 |
| HJR010A.pdf |
HTRA 2/26/2013 1:00:00 PM |
HJR 10 |
| HJR 10 - Sponsor Stmt Ver U.pdf |
HTRA 2/26/2013 1:00:00 PM |
HJR 10 |
| HJR 10 Exec Summary AK Trans Finance Study.pdf |
HTRA 2/26/2013 1:00:00 PM |
|
| NCSL-AASHTO Alaska profile.pdf |
HTRA 2/26/2013 1:00:00 PM |
HJR 10 |
| NCSL-AASHTO Study EXEC-SUM.pdf |
HTRA 2/26/2013 1:00:00 PM |
HJR 10 |
| HB0123A.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 123 |
| HB 123 -ATIF Sponsor Stmt Ver C.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 123 |
| HB109-DOT-CRHA-2-22-13.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 109 |
| HJR010-OOG-DOE-2-22-13.pdf |
HTRA 2/26/2013 1:00:00 PM |
HJR 10 |
| HJR 10 AML 2013Priorities.pdf |
HTRA 2/26/2013 1:00:00 PM |
HJR 10 |
| HB 109 Support Letter CIAA.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 109 |
| HJR 10 Support LTR Union of Operating Eng.pdf |
HTRA 2/26/2013 1:00:00 PM |
HJR 10 |
| HB123-DCCED-DCRA-02-22-13.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 123 |
| HB123-DCCED-DED-02-23-13.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 123 |
| HB123-DOA-DMV-2-23-13.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 123 |
| HB123-DOR-TRS-2-22-13.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 123 |
| HB123-DOT-PD-2-22-2013.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 123 |
| HB 123 Persily Report.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 123 HJR 10 |
| ATIF_2-25-13 payout spreadsheet.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 122 HB 123 HJR 10 HJR 10, HB 123 |
| HJR 10 HB 122 123 AOPA support letter.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 122 HB 123 HJR 10 |