Legislature(2011 - 2012)CAPITOL 17
02/17/2011 01:00 PM House TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| HJR4|| HB30 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HJR 4 | TELECONFERENCED | |
| += | HB 30 | TELECONFERENCED | |
| + | TELECONFERENCED |
HJR 4-CONST. AM: TRANSPORTATION FUND
HB 30-DEDICATED TRANSPORT FUND/PUB TRANSPORT
1:23:52 PM
CHAIR P. WILSON announced that the first order of business would
be, HOUSE BILL NO. 30, "An Act relating to the transportation
infrastructure fund, to local public transportation, to the
municipal harbor facility grant fund, to motor fuel taxes, to
the motor vehicle registration fee, to driver's license fees, to
identification card fees, to the studded tire tax, and to the
vehicle rental tax; and providing for an effective date."
CHAIR P. WILSON also announced the committee would also take up
HOUSE JOINT RESOLUTION NO. 4, Proposing amendments to the
Constitution of the State of Alaska creating a transportation
infrastructure fund.
CHAIR P. WILSON explained that the committee would take public
testimony on these two measures. She pointed out that members
have a sectional for HB 30 and the proposed Alaska
Transportation Infrastructure Fund (ATIF) "ATIF Payout Rates."
She reported that additional language has been submitted by the
Department of Transportation & Public Facilities (DOT&PF).
1:25:48 PM
BARBARA HUFF TUCKNESS, Director, Governmental and Legislative
Affairs, Teamsters Local 959, offered her belief that this is
proactive legislation to move Alaska forward. She stated that
U.S. Congressman Young has worked diligently to obtain federal
funding for road projects in Alaska. She supported the concept
of moving this dedicated fund forward. She concluded by asking
members when the last road was built in the past 30 years in the
State of Alaska.
1:27:46 PM
DON ETHERIDGE, Lobbyist, Alaska State AFL-CIO, stated he wanted
to go on record in support of HB 30. He answered the previous
speaker by stating that it has been a long time since roads have
been built in Alaska. He reported that as a member of the
Juneau Harbor Board, he has found the harbors in the state are
in atrocious condition and the state need additional funds to
fix them.
1:28:37 PM
KATHIE WASSERMAN, Executive Director, Alaska Municipal League
(AML), reported that every time the municipal elected officials
meets transportation is listed as one of their top priorities,
including roads, harbors, and facilities. The AML is an active
member of the National Association of Counties. The AML spends
countless hours attending national Transportation Committee
meetings. After speaking with U.S. Congressman Don Young, the
AML has been made aware that the current administration is
funding more mass transit than other transportation projects.
Therefore, Alaska is at a disadvantage as compared to other
states, she said. She also referred to a study conducted by
Cambridge Systematics, Inc., which identifies transportation
needs as a top priority, in particular to ensure that the
funding gap is filled as federal funds diminish. She pointed
out that the state also needs to prepare for a natural gas line
and additional oil development so it must gear up for additional
people yet the state currently has difficulty in maintaining its
roads, she said.
1:30:12 PM
BONNIE FOLZ, Administrative Manager, City of King Cove, related
she is testifying on behalf of Mayor Henry Mack who is still on
a fishery in the Gulf of Alaska. The City of King Cove supports
these two important transportation bills and encourages members
to pass these bills. The city owns a 12 mile local and state
road system, two large boat harbors and deep water docks. She
related that over $30 million in capital investments were used
to build these structures using federal, state, and local
government funds. The City of King Cove has been willing to
contribute significant municipal funding matches. Currently,
about 15 percent of its $4 million annual budget is spent on
maintenance and operations for its facilities. The city does
not have sufficient reserve funds for repairs and upgrades to
its transportation infrastructure, she said. The city recently
raised harbor and water fees by 35 percent. Additionally, the
city current imposes a four percent sales tax and two percent
fish tax. The City of King Cove, through its contributions to
marine fuel and fish taxes, contributes $2 million annually to
the state's general fund. The city expects a return on its
contributions by receiving future maintenance and capital funds
for its transportation facilities, which are key assets to its
long-term socio-economic sustainability. She offered her belief
that the state needs additional financial programs to support
transportation needs particularly in rural Alaska. She urged
members to pass HB 30 out of committee.
1:32:46 PM
JACK SHAY, Ketchikan, Alaska, related he has lived in Alaska for
51 years and has served in various capacities, including serving
on the school board, the Ketchikan Gateway Borough (KGB) and the
city council. He said he previously served in the capacity of
city mayor and KGB mayor. He current serves on the Board of
Directors of the AML. He echoed the thoughts of many other
testifiers that the Alaska Marine Highway System (AMHS) is not
only a vital link to communities but also provides a vital link
to the state's transportation system. He commended Chair P.
Wilson for sponsoring HB 30 and the resolution, HJR 4. He
remarked that the AMHS provides a link to interior Alaska.
1:34:38 PM
TOM GEORGE, Alaska Regional Representative, Aircraft Owners &
Pilots Association (AOPA), stated that the AOPA has
approximately 4,800 members statewide that use their aircraft
for recreational and business transportation. He offered
support for HB 30 and HB 31 [HB 31 is not on the calendar]. He
asked to speak to the aviation portion of the system. He
offered his belief that the capital programs are almost
exclusively federally funded by the Airport Improvement Program
(AIP). The federal funds pay approximately 95 percent of the
project costs and the sponsor, typically the State of Alaska,
pays the remaining five percent. The AOPA believes a state fund
is needed since the federal reauthorization bill, which includes
airport funding, is currently being considered by the U.S.
Congress. While the outcome of the federal funding is
uncertain, efforts have been made to change the federal
allocation which could adversely impact available funds to
improve Alaska's airports statewide. Additionally, the federal
funds come "with strings attached" so federal standards can add
substantial costs, he said. The federal government's priorities
do not necessarily meet Alaska's needs so it can be difficult to
fund projects in small rural communities. The FAA requires
airports must be built with funds that meet a set of federal
standards. The federal standards add substantial cost to
projects. He recalled previous testimony by the Department of
Transportation & Public Facilities (DOT&PF) that it can build
state funded projects at a much reduced cost when it does not
need to adhere to the federal standards. It is important that
the state's funding complements the federal funding.
CHAIR P. WILSON commented on the importance of essential air
service in Alaska. She said that at this time Hawaii and
Alaska's funding for airports is in the federal reauthorization
bill.
1:37:55 PM
JERRY VANDERGRIFF, Vice Mayor, City of Whittier, stated that the
City of Whittier was granted ownership of its small boat harbor
in 2004. At that time the harbor was in questionable condition
and in the past seven years it has continued to deteriorate
despite regular maintenance. The City of Whittier must replace
the harbor as it has become increasingly unsafe. He reported
that the state provided approximately $3.5 million to improve
the harbor, which was totally insufficient. He said rebuilding
the harbor will cost $10 million, but the city's population is
only 152 residents. However, 97 percent of the harbor slips are
owned by Anchorage residents, with a waiting list of over 400
people. Funding the harbor rebuild is a major burden for
Whittier's residents. Sixteen years ago the state also granted
Whittier 640 acres in Shotgun Cove. The City of Whittier faces
a deadline to improve and develop this land, and must sell it to
private owners or the state will take back the land. Shotgun
Cove represents the potential for the City of Whittier's growth.
Thus far, approximately two of the eight mile road to Shotgun
Cove has been built. These bills would go a long way to help
the City of Whittier to fund these projects, as well as to
provide maintenance funds for its harbors and facilities. He
pointed out that the city receives an average of 30 feet of snow
per year so road maintenance is a major project. Both the
harbor project and Shotgun Cove project are projects that were
initiated by the state. He urged passage of HB 30 and HB 31 [HB
31 was not before the committee].
1:40:26 PM
WHITNEY BREWSTER, Director, Division of Motor Vehicles (DMV),
Department of Administration (DOA), responded to a question at a
prior hearing on whether HB 30 would provide sufficient funds
for the DMV to operate. She said HB 30 would provide sufficient
funds for the DMV to operate.
1:41:01 PM
TIMOTHY ROONEY, Borough Manager, City and Borough of Wrangell,
stated that he recently was in Juneau about Wrangell's top
capital improvement priorities. He reported that six of its top
12 priorities are for road projects totaling over $9 million
dollars. One additional $9.5 million project is for its harbor
improvements. He stated that due to the shrinking federal funds
as well as the "strings attached to the federal funds" that the
City and Borough of Wrangell supports HB 30 and HB 31. He urged
members to pass HB 30 from committee. He also agreed with
earlier comments made on the importance of the AMHS to the
state.
1:42:11 PM
MITCHELL HRACHIAR reported on road conditions in Homer. He
stated that when he first moved to Homer, the Diamond Ridge Road
was unpaved and funds were not allocated for dust control. He
explained that the road was subsequently paved primarily from
federal funds, with about 10 percent derived from state funds.
It seems like maintenance dollars are not materializing, he
said. He reported that he recently counted 700 road cracks
along Diamond Ridge Road. Although he has worked with the Kenai
legislators last year to try to get funding for improvements, he
has not yet seen any road crews performing crack sealing. He
expressed concern over the lack of road maintenance. He
stressed the importance of maintaining roads and that without
adequate maintenance roads deteriorate. It costs considerably
more to rebuild roads, he remarked. He supports investing in
road maintenance and suggested raising the motor fuel tax to
cover maintenance costs rather than receiving handouts. Local
roads, such as Bear Creek in his area and 4th and 5th Avenue
streets in Anchorage should be maintained by local government,
which would result in less dependence on federal funds. He is
not against paying taxes so long as the taxes are distributed
equally, he said.
1:45:42 PM
KEVIN POMEROY, Member, Laborers Local 942, stated he is a 43
year resident of Alaska. He gave a brief history of some roads.
He related that the Parks Highway was built in 1971 and the
Richardson Highway began as a pack trail in the late 1800s. The
Elliot Highway was completed in 1959 and the Dalton Highway was
built in 1974 as a supply road for the Trans-Alaska Pipeline
System (TAPS). It has been several decades since any highway
infrastructure has been built. He recalled prior testimony on
how the AMHS system affects Southeast and Southcentral Alaska.
In the Interior, highways and airports provide the major source
of transportation along with the creation of jobs. He said that
"being able to boast that we're one of the states with the
largest checkbook" really doesn't help us if we do not use our
wealth to create jobs. He related his understanding that
increased infrastructure will ultimately bring increased
development and economic benefits. He stressed his support for
HB 30.
CHAIR P. WILSON said she thought the previous speaker brought up
good points. She clarified that the state has the biggest
checkbook but cannot use its biggest portion of revenue, which
is the Alaska Permanent Fund.
1:47:50 PM
JAMES MCKAY stated he grew up in Valdez and has lived in Alaska
for 35 years. He related that after his military service as a
combat medic for the US Army, he spent his career as a skilled
craftsman for the past 25 years. He recalled hearing
considerable testimony about infrastructure at the national and
local level. He offered his belief that infrastructure means
better jobs, improved roads, air, and marine service. Improved
infrastructure also translates to additional housing and helps
small businesses along the routes. He strongly supports HJR 4
and HB 30 and hopes these measures will pass the legislature.
He said passage of this legislation could help meet the needs of
smaller aviation, larger hubs, the AMHS, harbors, and roads. He
also said that long-term development in Alaska is important, in
terms of natural resources and land, and the future of our
children, depends on bills like these passing.
1:49:40 PM
SABRINA MARTINO, Member, Laborers Local 341, stated she recently
graduated from a two and a half year apprenticeship program.
She is an eight-year Alaskan resident and has noticed a great
need for additional road construction. She related that as an
apprentice she has learned first-hand road construction is a
necessity. Transportation is the key to Alaska's economic
growth. She reported some statistics she obtained on the
internet. In 1990, Alaska's population was 550,543. In 2009,
Alaska's population was estimated at 694,473, which represents a
21 percent increase over two decades. This represents three
times California's seven percent growth during that same period.
In prior years about 90 percent of Alaska's transportation
budget was derived from federal funds. The U.S. Congressional
delegation reports Alaska will need to rely less on federal
funding. She offered her belief that this bill and resolution
will offset federal funds and assist the state in providing
roads, ferries, and aviation necessary for safe travel.
Alaska's infrastructure needs to be built to accommodate our
growing state and also needs to be maintained. She pointed out
icy roads and road problems such as grooves on the Glenn Highway
and her appreciation for the smooth resurfaced roadways due to
last year's upgrades. Passage of HB 30 and HJR 4 will help
provide a multi-year funding source for planning, design, and
construction of roads. She urged support for HB 30 and HJR 4.
1:52:50 PM
RON AXTELL, Member, Laborers Local 341, stressed the necessity
to improve major highways in Alaska. Many of Alaska's roads are
rutted and Alaska has problems maintaining its infrastructure.
Financial uncertainty looming on the horizon could produce a
greater strain on future budgets. This proposed fund will help
reduce the pressure from outside influence of those who would
like to see Alaska remain undeveloped. He said that an
established fund will help Alaska have more control over how and
when to proceed with specific development. Many jobs and
businesses rely on transportation projects so performing work in
a timely and efficient manner is "win win" for everyone. It
would be a travesty for our governing body to tell its citizens
that it would like to perform more development and improvements
"but we just can't seem to find the money." He urged support
for HB 30 and HJR 4.
[HB 30 and HJR 4 were held over.]
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