Legislature(2003 - 2004)
05/12/2003 03:18 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
CS FOR SENATE BILL NO. 71(TRA)
An Act relating to funding for transportation projects;
and providing for an effective date.
Co-Chair Harris MOVED to ADOPT work draft #23-LS0583\U,
Utermohle, 5/12/03, as the version of the legislation before
the Committee. There being NO OBJECTION, it was adopted.
RANDY RUARO, STAFF, REPRESENTATIVE BILL WILLIAMS, explained
the changes made to the House Finance Committee substitute
st
for SB 71. The change indicates that after October 1,
2006, the amount that the Department of Transportation &
Public Facilities can annually allocate to the track program
for non-restricted highway apportionment reduced from 4% to
2%.
SENATOR BEN STEVENS noted that he did not oppose the House
Finance version of the legislation. He commented on the
original version of the bill in which federal law,
Transportation Efficiency Act (TEA)-21, and its predecessor,
Intermodal Surface Transportation Efficiency Act (ISTEA),
mandates that all states expend at least 10% of Federal
Surface Transportation Program funds on enhancements such as
trails and landscaping. Over the past several years, the
State of Alaska has expended amounts well beyond the minimum
requirements for enhancement projects that could otherwise
be applied to roadway construction and improvement projects.
SB 71 will decrease the amount allocated for the Trails and
Recreational Access Program to be in line with federal
minimum requirements, making available millions for roadway
construction and improvement projects.
SB 71 proposes to reduce the Department of Transportation's
allocation of non-restricted federal apportionments to
projects classified under the Trails and Recreational Access
Program (TRAAK). Under current Department regulations, they
allocate at least 8% percent to TRAAK projects; the House CS
for SB 71 reduces that allocation to not more than 4% in
2004 and not more than 2% in 2006. The bill would redirect
the funding into the Department's allocation for
transportation projects classified under the Community
Transportation Program (CTP), which includes the Statewide
Road Surface Treatment program and the Highway System and
Bridge Refurbishment program.
Administrative Order #161 from 1996, Knowles Administration
established the Trails and Recreational Access for Alaska
(TRAAK) program to address features such as trails, scenic
highways, recreational access points and interpretive
facilities. From 1998 to 2003, over $150 million was
allocated to the TRAAK projects while the federal minimum
for transportation enhancement expenditures was $43 million
dollars, more than a 200% increase. The expenditures do not
include separate bike paths or waysides for individual
construction projects in the National Highway System, the
Alaska Highway system or community transportation programs.
Only a municipality that is federally recognized, as a
Municipal Planning Organization (MPO) would be impacted by
Section (c) of the legislation, which is Anchorage and
Fairbanks. In 1998, the Anchorage Metropolitan Area
Transportation Solutions (AMATS) adopted a policy of
programming 15% of its transportation funding allocation for
enhancements. The three-year average at 15% for
transportation enhancements from 2000-2002 in the
Transportation Improvement Program averaged roughly $5.5
million dollars. If realized, 10% of the Anchorage share of
TEA-21 federal-aid transportation funds for a three-year
average between 2004-2006, would roughly amount to $5.8
million dollars.
Representative Berkowitz inquired about Section 1 of the
bill and comments made regarding exceeding the federal
guidelines. Senator Ben Stevens referenced the spreadsheet,
noting that in FY03, the $6.4 million dollar number came
from a percentage of the none-restricted federal money.
Adding a match to that, the State spent $22 million dollars
for similar projects. Representative Berkowitz asked where
the other $15 million dollars came from. Senator Ben
Stevens replied that it came out of the CTP, the federal
money pot. He referenced the Alaska Trails & Recreational
Access for Alaska (TRAAK) Program handout in the file.
(Copy on File). The bill takes TRAAK money and puts it back
into the CTP.
Representative Berkowitz clarified that the federal
government now provides money to the State with flexibility
on how to appropriate it. Senator Stevens explained that
the federal government provides funding with guidelines on
how much to spent on transportation, clear outs, landscaping
and pedestrian access. The State has been outspending the
minimum by 3 to 1. SB 71 will reduce it to the minimum
requirement.
Representative Berkowitz noticed that since the federal
guidelines address specifics, how was the State able to
exceed the appropriation. Senator Stevens advised that the
federal established criterion is a minimum with no maximum
established. He did not know of a way to get the non-
restricted highway money into non-road projects. The
objective of the legislation is to go to the minimum
required in order to maintain the State's eligibility for
transportation funding and then use 90% of that for road
construction for meeting existing traffic concerns in
Anchorage.
JEFF OTTENSEN, ACTING DIRECTOR, STATEWIDE PLANNING CHIEF,
DIVISION OF STATEWIDE PLANNING, DEPARTMENT OF TRANSPORTATION
& PUBLIC FACILITIES, referenced the large pie chart in the
TRAAK handout. That chart indicates a category of federal
aid received by the State called the Surface Transportation
Program (STP). One of the rules with that category of money
is that 10% be spent on transportation enhancements and 10%
must be spent on safety. Those are minimum amounts.
Representative Berkowitz questioned Alaska's need for a
bill, which determines federal appropriation percentages.
He suggested that should be built in. Senator B. Stevens
disagreed. He stated that the Legislature does not have
anything to do with the Surface Transportation Improvement
Program (STIP) and only approves that program. However, the
program is developed by criteria set forth by the Department
of Transportation & Public Facilities. The legislation
would clarify that in the amount provided by the program,
the amount used on transportation enhancement program would
be limited. The numbers indicate that the State has
exceeded the suggested percentages for the other
enhancements, often by four times the amount of the federal
minimum. The bill is an attempt to clarify in statute, what
the minimum guidelines should be.
Representative Berkowitz noted that STP carries a 10%
minimum enhancement and a 10% minimum safety. He asked if
there were any other requirements and how the State arrived
at the 40% - 50% enhancements. Mr. Ottensen explained that
those are minimum amounts and that the State has the
prerogative for spending more than the minimum on safety
projects.
Representative Berkowitz inquired if the remaining 80% would
be funds that the State was free to use, as needed. Mr.
Ottensen replied that was correct, pointing out the
requirements.
Representative Kerttula asked if under the proposed program,
would funding be taken from other projects. Mr. Ottensen
responded that the State would have to "slow down" the pace
of building TRAAK projects and transportation improvements.
There will be an acceleration of road building projects.
Representative Kerttula noticed that currently, there were
decisions made to spend more funding on alternate types of
projects and that the proposed legislation would shift the
considerations. Mr. Ottensen acknowledged that was correct.
In March 2002, the Department declared 8% be used for the
TRAAK program and 33% for community transportation,
essentially roads and buses. SB 71 was drafted to change
that ratio to 4% & 37%; the committee substitute would
change it further in FY06 to 2% & 39%.
Representative Kerttula inquired if comments had been
received regarding regulations and projects completed. Mr.
Ottensen replied that there had been few comments made.
When Commissioner Barton took over, he determined that
statewide needs for the TRAAK program were too large. Last
year, a public interest finding was made, shrinking the
program to 5%. When SB 71 was drafted, the Department was
consulted and recommended that 4% would be adequate. Mr.
Ottensen acknowledged that the decision had been a "policy
call" regarding basic necessities for Alaskan communities.
He noted that in some parts of the State, transportation is
virtually non-existent.
Representative Kerttula asked if the legislation would
affect all safety entities. Mr. Ottensen explained that
some projects address both safety and enhancement, making
the language confusing.
Representative Kerttula inquired if there was a way to
separate safety projects under the current spending. Mr.
Ottensen replied that would be difficult but they could
provide that information in a few days as the projects are
all coded.
Representative Berkowitz stated that Subsection © intrudes
on local control. Senator Stevens commented that to be able
to comprehend the impact of Section ©, it is important to
note that that the allocation to AMATS recently had an
increase to the reallocation transportation project. It
moved from 22% to 27.5%, shifting the money. The Department
of Transportation & Public Facilities recognizes that shift
and increase in allocation. He noted that his position was
to realize that increase and not spend 15% on road
enhancement but rather return it to 10%. He pointed out
that the $5.7 million dollars used for trails has proven to
build a good trail system in Anchorage and kept up with the
steady expansion of other projects.
Representative Berkowitz commented on the determinations
made by AMATS, agreeing that those should essentially be
local considerations. Senator B. Stevens interjected that
it was local determination utilizing federal money and was
another example of exceeding minimum requirements for
federal money.
Representative Berkowitz asked if Subsection © would apply
to any other areas of the State outside Anchorage. Senator
Stevens replied that it would also apply to Fairbanks.
Senator Stevens pointed out that an Administrative Order by
the previous Administration established the existing track
program. That order was signed in 1996. The regulations
were not adopted until March 2002. The Department has been
managing the TRAAK Program for six years.
Representative Kerttula questioned why the percentage was
being dropped to 2% so quickly. Mr. Ottensen responded that
the 2% was the change introduced in the adopted committee
substitute. He added that it had not been a recommendation
made by the Department, however, they are not opposed to it.
There is a tremendous need reservoir for highways and that
the global warming is having a devastating effect on the
State's highways. Senator Stevens noted that the Department
of Transportation & Public Facilities has indicated over a
$3 billion dollar backlog in road projects. He reiterated
that the State should stay within the federal minimums.
Representative Berkowitz asked if there was anything in
Subsection © that would impede Anchorage or Fairbanks from
adopting it on their own. Mr. Ottensen replied there was
not.
MATT DAVIDSON, ALASKA CONSERVATION VOTERS, testified against
the legislation and the changes proposed in the committee
substitute. He claimed that it was totally appropriate for
the State of Alaska to spend more money on transportation
enhancements than the federal minimal. In Alaska, these
monies are used on a wide variety of projects. Putting only
2% into the enhancements would be a dramatic change. He
provided a list of scheduled projects for this year created
in October 2002. These projects total $30 million dollars.
Under SB 71, in 2006, that amount would be cut to $7 million
dollars statewide. Mr. Davidson urged that current funding
remain in place.
Representative Chenault responded that there have been no
new roads built statewide for many years and that in his
district, some of the roads are not safe to drive. He noted
that he would be willing to give up trails and wayside
enhancements for safe roads.
Representative Kerttula asked the percentage of TRAAK
projects that had been scheduled for safety. Mr. Davidson
responded that they had not worked it out that way. He did
not know if the cuts in the proposed funding could go to the
reconstruction of the roads without major overhauls. Those
are capital budget discussions.
Representative Berkowitz MOVED to delete Subsection ©,
allowing municipalities to make their own decisions on how
to use the funds. He urged more local control.
Representative Stoltze OBJECTED.
KRISTI TIBBLES, STAFF, SENATOR BEN STEVENS, stated that
Senator Stevens would oppose the recommended change.
A roll call vote was taken on the motion.
IN FAVOR: Kerttula, Moses, Berkowitz
OPPOSED: Meyer, Stoltze, Whitaker, Chenalut, Foster,
Hawker, Harris, Williams
THE MOTION FAILED (3-8).
REPRESENTATIVE KERTTULA MOVED to ADOPT Amendment #2, which
would keep the percentages at the 4%/37% margin, allowing 4%
go to projects classified under the Trails and Recreational
Access. She thought that type project would use safety
projects such as widening school crossings.
Co-Chair Williams OBJECTED.
A roll call vote was taken on the motion.
IN FAVOR: Moses, Berkowitz, Kerttula
OPPOSED: Meyer, Stoltze, Whitaker, Chenault, Foster,
Hawker, Williams, Harris
THE MOTION FAILED (3-8).
Representative Foster MOVED to report HCS CS SB 71 (FIN) out
of Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
HCS CS SB 71 (FIN) was reported out of Committee with a "do
pass" recommendation and with zero note #1 by the Department
of Transportation & Public Facilities.
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