Legislature(1999 - 2000)
03/07/2000 01:10 PM House TRA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HJR 5 - DEDICATED HIGHWAY AND HARBOR FUNDS CHAIRMAN HALCRO announced the first order of business as House Joint Resolution 5, Proposing amendments to the Constitution of the State of Alaska creating a highway fund and a harbor fund. CHAIRMAN HALCRO called on the sponsor to address the proposed amendment, which includes the addition of a marine highway fund. Number 0080 REPRESENTATIVE ALAN AUSTERMAN, Alaska State Legislature, came before the committee as sponsor of the resolution. The concept of the amendment [Amendment 1] is to look at the Alaska Marine Highway System as part of the overall transportation system. The amendment, therefore, would make sure that the tolls collected for the marine highway would go into a fund in order to help finance it. Number 0152 REPRESENTATIVE JOHN COWDERY commented that he has heard there would not be a fee charged for the Whittier tunnel. REPRESENTATIVE AUSTERMAN stated, according to his understanding, there would be a toll of $15 per person, but he's not sure what the toll would be for vehicles. It would be the second toll in the state. CHAIRMAN HALCRO explained that any toll for the Whittier tunnel is not scheduled to be collected until April 1, 2001. There would not be any toll collected for the first year. REPRESENTATIVE COWDERY made a motion to adopt Amendment 1, 1-LS0224\A.1, Kurtz, 3/6/00. There being no objection, Amendment 1 was so adopted, which reads as follows: Page 1, line 2, following "highway fund": Insert ", a marine highway fund," Page 1, line 9: Delete "or 19" Insert ", 19, or 20" Page 2, following line 25: Insert a new section to read: "Section 20. Marine Highway Fund. (a) The revenue received after June 30, 2001, that is generated from the operation of the Alaska marine highway system, including that derived from vessel operations and uses of Alaska marine highway system facilities, less refunds and credits as provided by law, shall be placed in a marine highway fund. Except as provided in (c) of this section, the legislature may appropriate money from the marine highway fund only for the maintenance and operational costs of the marine vessels and facilities of the Alaska marine highway system. (b) The legislature shall provide by law for the management and investment of the marine highway fund balance. The income earned from the management and investment of the marine highway fund shall be deposited into the fund. (c) An appropriation from the marine highway fund for a public purpose other than one described in (a) of this section may be made upon an affirmative vote of three-fifths of the members of each house of the legislature." CHAIRMAN HALCRO called on Dennis Poshard from the Department of Transportation & Public Facilities and asked him to comment on whether or not dedicating these funds would make it easier for the people to accept an increase in the gas tax, as indicated by the Administration [Annalee McConnel] at a previous House Transportation Committee hearing. [See House Transportation Committee minutes dated 2/10/00.] Number 0300 DENNIS POSHARD, Legislative Liaison/Special Assistant, Office of the Commissioner, Department of Transportation & Public Facilities, came before the committee to answer Chairman Halcro's question. He can't speak for Annalee McConnel [Director, Office of Management & Budget, Office of the Governor], but she mentioned at an earlier House Transportation Committee hearing that the Administration would consider a constitutional dedication, if it was used as a means to make an increase in the gas tax "palatable." Ms. McConnel also mentioned that the Administration is concerned about raising the expectations of the people for a certain level of funding for harbor and road maintenance and service, while at the same time the Department of Transportation & Public Facilities continues to receive budget cuts. He cited that the department received a $3.7 million cut for maintenance last year, and is looking at further cuts this year. Mr. Poshard further indicated that the department is not concerned about whether or not these dedicated funds are in statute or in the constitution, for the receipts would be far short of the annual costs to maintain roads and/or harbors throughout the state. The same would be true for the marine highway fund as presented in Amendment 1; the receipts would be far short of what is needed to run the Alaska Marine Highway System on an annual basis and would still require additional general fund appropriations in order to maintain current levels. The department, therefore, really doesn't have a preference. In terms of the "big picture," the comments made by Ms. McConnel still hold true. Number 0608 CHAIRMAN HALCRO said he thinks that this issue comes down to the saying of, "What comes first? The chicken or the egg." This committee, he said, has dealt with the transportation aspects of this resolution; he is ready to move it forward. Number 0629 REPRESENTATIVE BILL HUDSON expressed that he has felt from the beginning that a dedicated harbor fund, coupled with an increase in the motor fuel tax, is a legitimate item to consider, especially given the current revenue imbalance(s). He's fully aware of how expensive gas is in the state, but the committee ought to be considering the entire picture, which includes raising the motor fuel tax. He does not have a problem with placing before the people the establishment of a constitutionally dedicated fund for roads, harbors and ferries, but he's sorry that the committee has uncoupled the motor fuel tax component. He said, "Twenty-seven million dollars is twenty-seven million dollars." Number 0784 REPRESENTATIVE ALLEN KEMPLEN stated the resolution seems to be more balanced by including various transportation facilities, but it still seems to be missing a piece - public transit systems. REPRESENTATIVE KEMPLEN proposed to delete the word "and" and to include the language, ", highways and public transit systems," after the word "roads", on page 2, line 2, of the resolution [Amendment 2]. CHAIRMAN HALCRO asked the sponsor whether he has any objection to the proposed amendment [Amendment 2]. Number 0921 CLIFF STONE, Staff to Representative Alan Austerman, Alaska State Legislature, came before the committee to testify on the proposed amendment [Amendment 2]. In discussions with Representative Austerman, the addition of the marine highway fund would take care of the public transit concerns discussed at an earlier House Transportation Committee hearing. The public transit systems, he said, do not pay a tax, so he doesn't believe that the proposed amendment would "cloud" this resolution. Number 0976 CHAIRMAN HALCRO pointed out that the language in this resolution indicates the legislature "may," not "shall," appropriate money [page 2, line 1, of the resolution]. At the end of the day, he said, the power of appropriation still rests with the legislature, which may mean a grant to communities in order to buy additional buses, for example. MR. STONE noted that this resolution could potentially create funding for public transit systems to leverage federal dollars, for example. He cited that when the public transit system in Kodiak ran out of money they sought state dollars in order to match federal dollars. This resolution, therefore, might help in those situations. REPRESENTATIVE COWDERY objected to the proposed amendment [Amendment 2]; he thinks it would "cloud" the issue. A roll call vote was taken. Representatives Kohring, Masek, Halcro, Kemplen, Kookesh and Hudson voted "yea." Representative Cowdery voted "nay." By a vote of 6-1, Amendment 2 was so adopted. REPRESENTATIVE HUDSON made a motion to move HJR 5, as amended, out of committee with individual recommendations and attached fiscal notes; he asked unanimous consent. REPRESENTATIVE BEVERLY MASEK objected to the motion; she simply does not support the legislation. Number 1192 REPRESENTATIVE VIC KOHRING stated he appreciates the efforts of the resolution, but he is concerned that it would encourage more taxation, as indicated in the sponsor statement. The sponsor statement reads, "By establishing a dedicated fund, Alaska's citizens might be more inclined to accept an increase in the highway and marine fuel tax ..." He thinks that there should be greater cuts and reforms to the budget as opposed to encouraging more taxation. Number 1254 CHAIRMAN HALCRO expressed that the sentence Representative Kohring referenced in the sponsor statement needs to be completed. It reads, "By establishing a dedicated fund, Alaska's citizens might be more inclined to accept an increase in the highway and marine fuel tax, if they knew the money would be spent specifically on the maintenance of our highways and harbor facilities." In a time of decreasing funding, he thinks, that this is a necessity in order to show the people how these revenues are being used. In other words: Why they are being collected? How they are being collected? Where they are going. He said, "I think we'll get more participation and more understanding of the state budget." A roll call vote was taken. Representatives Hudson, Halcro, Kemplen and Kookesh voted "yea." Representatives Kohring, Masek and Cowdery voted "nay." By a vote of 4-3, CSHJR 5(TRA) so moved from the House Transportation Standing Committee.
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