Legislature(1997 - 1998)
03/27/1998 08:10 AM Senate FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 264
"An Act relating to aid for municipal road maintenance;
and providing for an effective date."
CS FOR SENATE BILL NO. 264(TRA)
"An Act relating to aid for municipal road maintenance,
and to the transfer of roads to municipalities; and
providing for an effective date."
Co-chair Pearce noted that there was a transportation
committee CS in members' files.
Senator Torgerson explained that the bill would remove the
current municipal road maintenance office out of the State-
shared revenue statutes and makes it a stand-alone program.
The new program would adopts the same eligibility and
requirements as the old program. It further asked the
revenue sharing for roads be increased to $1000/mile from
the current level. It is the intent of the legislation that
the balance of approximately $4 million be put into another
program that would be available for the upgrade and transfer
of roads from State to local governments. This would create
a stable funding source for the road program.
Senator Adams said he opposed this legislation. He did not
feel this would bring stability to other parts of the
statute. With regards to section 4, which provided the
motor fuel collections would be deposited into a separate
account. They would have to go back and look at the current
status of revenue sharing. There is a cost of living for
roads and hospitals, but what is being done under this is
placing a flat fee of $1000/mile and that is a concern to
many of his rural communities.
Senator Torgerson advised his colleague that rural
communities get revenue sharing for roads also. He
concurred with Senator Adams that perhaps they were taking
the strongest link out of what is left of revenue sharing by
removing this program. However, that is the reason that it
is being taken out. It is a high priority. It is not
feasible to hold the entire revenue sharing program harmless
because this program is mixed in with it. This program
needs to be removed and shored up with additional funds,
establish the road transfer program, which would allow local
governments to take over some of the roads.
Senator Torgerson MOVED amendment #1. Senator Adams
OBJECTED. He said he did not know the impact of this
amendment.
(Tape #103, Side A switched to Side B.)
By a hand vote of 5 yeas (Pearce, Sharp, Donley, Torgerson,
Parnell) and 1 nay (Adams) the amendment was ADOPTED.
Senator Torgerson MOVED amendment #2. Senator Adams
OBJECTED. He felt it should be in the capital budget.
Senator Torgerson concurred that it should be in the capital
budget before Senator Sharp. However, they needed something
to act on. By a hand vote of 5 yeas (Pearce, Sharp, Donley,
Torgerson, Parnell) and 1 nay (Adams) the amendment was
ADOPTED.
Co-chair Pearce noted for the committee that fiscal note #3,
Department of Transportation and Public Facilities was an
update for fiscal note #1.
Dennis Poshard, Legislative Liaison, Office of the
Commissioner, Department of Transportation and Public
Facilities was invited to join the committee. He said the
STIP communities compete for funding of projects. He
explained the revenue sharing of maintenance of roads and
noted a current cap of $3,000 depending on the
appropriation. He said 5,000 road miles currently receive
revenue sharing and felt this legislation would make false
commitments to municipalities. He had no comments to the
amendments.
Pat Poland, Director, Division of Municipal and Regional
Assistance, Department of Community and Regional Affairs
testified via teleconference from Anchorage. He said the
department would like to see a more comprehensive program
and not a program where urban areas were winners and rural
areas were losers. He explained a few minor technical
concerns and said he could get his written comments to the
committee.
Mike Cushing, Research and Analysis, Division of Municipal
and Regional Assistance, Department of Community and
Regional Affairs was invited to join the committee. He did
not have any further comments to add to Mr. Poland's
testimony.
Jim Swing, Parks and Recreation, Matanuska-Susitna Borough
testified via teleconference from Mat-Su on behalf of the
borough administration and assembly. He said they strongly
supported the bill and welcomed the reimbursement level.
Ocie Adams, member, Road Service Area Advisory Board to the
Matanuska-Susitna Borough testified via teleconference from
Mat-Su. He also indicated they supported the bill.
Senator Torgerson MOVED CSSB 264(FIN). Senator Adams
OBJECTED. He said the bill would take money from rural
areas and that it belonged under the capital project. Under
section 4 the 37.5% was dedicated to roads and it could have
a potential constitutional problem because of dedication of
roads. He feels the bill will hurt rural Alaska.
Co-chair Pearce pointed out that subsistence was
unconstitutional, also, but that was why they were spending
time trying to fix it. Senator Adams said the way to fix
subsistence was to vote on a constitutional amendment with
rural preference.
Senator Torgerson said the bill was not an attack on rural
Alaska. He said it would reimburse $1000/mile. It was a
novel concept to pay one to do something and then expect
that it be done.
By a roll call vote of 4 yeas (Pearce, Sharp, Donley,
Torgerson ) and 1 nay (Adams) CSSB 264(FIN) was REPORTED OUT
with individual recommendations and accompanying fiscal
notes from the Department Revenue, zero; and Department of
Transportation and Public Facilities, $38.5.
Co-chair Pearce HELD SB 263 until Tuesday. There followed
miscellaneous conversation regarding the committee schedule.
ADJOURNMENT
Co-chair Pearce recessed the committee at approximately
11:02 a.m. until Saturday at 9:00 a.m.
SFC-98 -14- 3/27/98
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