Legislature(2003 - 2004)

03/11/2003 09:07 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= 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."                                                                                          
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
[NOTE:  The initial  portion  of  the sponsor's  testimony  was  not                                                            
recorded  due  to  recording  technicalities.   In  lieu  of  verbal                                                            
testimony, Senator  B. Steven's Sponsor's Statement  is incorporated                                                            
into the minutes as follows.]                                                                                                   
                                                                                                                                
                          Sponsor Statement                                                                                     
                  Committee Substitute for SB 71:                                                                               
               Transportation Enhancement Projects.                                                                             
                                                                                                                                
     Federal law,  TEA-21, and its predecessor, ISTEA,  mandate that                                                            
     states  expend at least 10% of  federal Surface Transportation                                                             
     Program  funds on enhancement  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. CS for Senate  Bill 71                                                            
     decreases  the  amounts allocated  for  the TRAAK  program  and                                                            
     other enhancement  projects to be in line with  federal minimum                                                            
     requirements  to free  up millions of  dollars to be  available                                                            
     for roadway construction and improvement projects.                                                                         
                                                                                                                                
     The committee substitute  for Senate Bill 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 DOT  regulations, the department allocates  at least 8%                                                            
     percent to TRAAK projects;  CS for SB 71 reduces the allocation                                                            
     to not more  than 4%. The bill redirects the  other 4% into the                                                            
     DOT  allocation  for projects  classified  under the  Community                                                            
     Transportation  Program, increasing  this program's  allocation                                                            
     to 37%.                                                                                                                    
                                                                                                                                
     Administrative  Order  #161 of the  previous administration  in                                                            
     1996 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                                                            
     for  the   TRAAK  projects  while   the  federal  minimum   for                                                            
     transportation  enhancement  (i.e. trails,  landscaping  scenic                                                            
     beautification) expenditures  was $43 million; more than a 200%                                                            
     increase.  These  expenditures  do  not include  separate  bike                                                            
     paths   or   waysides   that  were   included   in   individual                                                            
     construction  projects in the National Highway  System program,                                                            
     the Alaska Highway  system or Community Transportation Program.                                                            
                                                                                                                                
     Only  a  municipality   that  is  federally  recognized   as  a                                                            
     Municipal  Planning  Organization  (MPO) would  be impacted  by                                                            
     this section  (c) of this legislation, which  are 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 Transportation Improvement Program                                                            
     averaged    roughly   $5.5    million.   The   Department    of                                                            
     Transportation  is  expecting  the  Anchorage share  of  TEA-21                                                            
     federal-aid  transportation funds  to increase within  the next                                                            
     Statewide   Transportation   Improvement   Program.  With   the                                                            
     anticipated overall  increase, 10% of the three-year average of                                                            
     federal-aid  highway funds  allocated  to AMATS during  2004-06                                                            
     will  be roughly  $5.8  million, slightly  more  than what  was                                                            
     allocated during 2000-2002.                                                                                                
                                                                                                                                
[Note: Recording resumes.]                                                                                                      
                                                                                                                                
Senator B.  Stevens directed the Committee  to a spreadsheet  titled                                                            
"Comparison of  Minimum TE Expenditures Required Under  Federal Law,                                                            
and Total Level of TRAAK  Project Funding 1998-2003," [copy on file]                                                            
provided by the Department  of Transportation and Public Facilities.                                                            
He  explained that  this  information  depicts the  federal  surface                                                            
transportation  funding, the federal  and State funding allocation,                                                             
and the total  TRAAK Program allocation for the years  1998-2003. He                                                            
summarized  that the federal and State  ten percent match  for these                                                            
years totaled  approximately $43 million; however,  he declared, the                                                            
State spent in excess of $150 million.                                                                                          
                                                                                                                                
Senator B. Stevens  advised that Section 1(a) of the  bill addresses                                                            
the federal  and State  funding levels, and  Section 1(c)  addresses                                                            
AMATS. He  stated that  the spreadsheet titled,  "Comparison  of the                                                            
Anchorage   Metropolitan  Area  Transportation   Solutions   (AMATS)                                                            
Enhancements Allocation  at 10% and 15%,"[copy on  file] provided by                                                            
that AMATS 2001-03 TIP  and Draft 2004-06 TIP depicts the year 2000-                                                            
03 AMATS  allocations,  the  actual amounts  allocated,  and the  15                                                            
percent and ten  percent funding levels. He referenced  the proposed                                                            
year 2004-06  program funding  increases at  the 15 percent  and ten                                                            
percent levels,  and he argued that,  rather than remove  money from                                                            
the  Anchorage  trail  system,  the ten  percent  level  of  funding                                                            
specified in  this bill would allow  the recent average of  funds to                                                            
be  maintained  or  increased  while allowing  more  funding  to  be                                                            
allocated  to actual road  projects which,  he advised, should  be a                                                            
priority of the State.                                                                                                          
                                                                                                                                
Senator B.  Stevens referred the Committee  to the pie chart  titled                                                            
"Distribution  of Federal-Aid  Transportation  Formula Funds  Per 17                                                            
AAC 05.155-200" within  the "Trails and Recreation Access for Alaska                                                            
(TRAAK)   Program"   pamphlet   provided   by  the   Department   of                                                            
Transportation  and Public Facilities. He explained  that the larger                                                            
of  the two  pie charts  reflects  that 41  percent  of the  federal                                                            
funding  is allocated  to  fund the  CTP (Community  Transportation                                                             
Program) that  funds the STIP. He  stated that eight percent  of the                                                            
total 41 percent funding  is designated for TRAAK with the remaining                                                            
33  percent  designated  to  fund  the  MPOs  and  all  other  State                                                            
transportation projects.                                                                                                        
                                                                                                                                
Senator Stevens  summarized that Section  1(b) reduces the  level of                                                            
TRAAK  funding to  four percent  thereby  increasing the  CTP to  37                                                            
percent, which would benefit all statewide road projects.                                                                       
                                                                                                                                
Senator  Olson  commented  that while  he  understands  the  concern                                                            
regarding  road  project  funding   needs,  he  asked  whether  this                                                            
legislation  would  affect  rural  trail funds.  He  emphasized  the                                                            
importance   of   rural  trails,   which   serve  as   the   primary                                                            
transportation link for many communities                                                                                        
                                                                                                                                
                                                                                                                                
SFC 03 # 18, Side A 10:58 AM                                                                                                    
                                                                                                                                
                                                                                                                                
Senator Olson continued  that snow machine trail markings provide an                                                            
"essential  link for  people traveling  between  villages" in  rural                                                            
areas of the State.                                                                                                             
                                                                                                                                
Senator  B.  Stevens  stated  that the  intent  of  the bill  is  to                                                            
continue  to fund TRAAK trail  needs at the  four percent level.  He                                                            
stated  that some  of the  projects  on the  "Tentative Advertising                                                             
Project  Schedule  as  of  Friday  March 7,  2003"  [copy  on  file]                                                            
provided by the  Department of Transportation and  Public Facilities                                                            
are not  trail enhancement  projects  "but are  actually large  road                                                            
projects that  are being funded." He pointed out that  Item #12 is a                                                            
highway  and that Items  #13 and  #14 are road  rehabilitations.  He                                                            
asserted that  the TRAAK program should continue to  provide funding                                                            
for "rural transportation corridors."                                                                                           
                                                                                                                                
Senator Olson clarified  that while he understands the intent of the                                                            
bill, he is requesting  verification that the rural trails would not                                                            
be negatively impacted by this legislation.                                                                                     
                                                                                                                                
JAMES ARMSTRONG,  Manager, Transportation Planning,  Municipality of                                                            
Anchorage,  testified via teleconference  from Anchorage  and voiced                                                            
support for  the bill. He noted that  the March 3, 2003 letter  from                                                            
the Municipality  of Anchorage Mayor, George Wuerch,  to Senator Ben                                                            
Stevens [copy on file] endorses the legislation.                                                                                
                                                                                                                                
TED  VOLIN testified  via  teleconference  from Anchorage  to  voice                                                            
support of the four percent  TRAAK funding level as specified in the                                                            
bill.                                                                                                                           
                                                                                                                                
Senator Hoffman  voiced concern that,  while this legislation  would                                                            
result in more  dollars being available for road improvement  needs,                                                            
federal standards might  prevent the money from being spent in rural                                                            
areas.  Therefore,  he  suggested  that consideration  be  given  to                                                            
specifying an allocation for Rural projects.                                                                                    
                                                                                                                                
Senator Hoffman asserted  that restrictions should be imposed on the                                                            
TRAAK   program  to   prevent  further   abuses   in  the   program;                                                            
specifically to  ensure that urban road projects should  be required                                                            
"to  vie" for  designated  road project  funding  rather than  TRAAK                                                            
funds. He expressed  that, without  restrictions, rural areas  would                                                            
be required  "to compete" against  larger community "mega-projects"                                                             
for funds of "a smaller pie."                                                                                                   
                                                                                                                                
Senator B.  Stevens voiced  that this legislation  would provide  an                                                            
additional  $13 million "to meet all  other State and local  needs,"                                                            
which, he argued, would include Rural needs.                                                                                    
                                                                                                                                
Mr. Ottesen voiced  that the issue of whether rural  trials that are                                                            
used by machines should  be viewed as TRAAK or CTP projects has been                                                            
debated for years.  He voiced the position that rural  trails should                                                            
be recognized as part of  the CTP program "as they are moving people                                                            
and their goods  for the sake of commerce and daily  living," rather                                                            
than being used  "as a recreational asset." Therefore,  he continued                                                            
they would  be "more adequately funded"  than they currently  are if                                                            
the CTP funding increases from 33 percent to 37 percent.                                                                        
                                                                                                                                
Senator Hoffman  countered that the Department's "ranking  criteria"                                                            
rates Rural projects  "very low" and "favors" higher  service areas.                                                            
                                                                                                                                
Mr. Ottesen  assured that  the formula would  be revisited  when the                                                            
next  STIP is  developed.  However, he  continued,  that while  many                                                            
Rural  trails have  been funded,  the Department  has experienced  a                                                            
backlog  of projects  due to the  difficulty  in implementation.  He                                                            
stressed  that the Department  supports village  trail projects  "as                                                            
they  save  lives,"  they  help  people  move  food  and  fuel  from                                                            
community  to community, and  "they are a  highway in the very  real                                                            
sense of the word."                                                                                                             
                                                                                                                                
Senator Bunde  understood that, were  this bill adopted,  $3 million                                                            
of AMATS  funding and four  percent of TRAAK  funding, amounting  to                                                            
approximately $13 million, would be available for road projects.                                                                
                                                                                                                                
Senator  B. Stevens  clarified  that  the  total amount  of  federal                                                            
funding would remain the  same; however, he continued, four percent,                                                            
rather than the current  eight percent, would be allocated for TRAAK                                                            
funding. He stated  that this would result in additional  CTP funds.                                                            
                                                                                                                                
Mr.  Ottesen verified  that  were  the percent  allocated  to  TRAAK                                                            
reduced  to  four  percent,  an  additional  $13  million  would  be                                                            
available for road projects in FY 04.                                                                                           
                                                                                                                                
Senator Bunde  surmised, therefore,  that approximately $15  million                                                            
would  be made  available  to  transport  people above  the  current                                                            
allocation.                                                                                                                     
                                                                                                                                
Mr. Ottesen agreed.                                                                                                             
                                                                                                                                
Senator  Olson asked whether  this legislation  would affect  marine                                                            
transportation; specifically channel markings.                                                                                  
                                                                                                                                
Mr.  Ottesen explained  that  the  State is  unable  to use  federal                                                            
highway  funds for  ports or navigation  aides.  He voiced  optimism                                                            
that, through  the Denali Commission, these types  of projects might                                                            
be  eligible for  funding,  and he  noted  that the  Department,  in                                                            
anticipation  of this funding,  is supplying  the Denali  Commission                                                            
with pertinent information "on the types and needs that exist."                                                                 
                                                                                                                                
Senator   Olson  asked  who   is  currently   responsible   for  the                                                            
maintenance of channel markers in rivers.                                                                                       
                                                                                                                                
Mr. Ottesen responded  that "aides to navigation"  are currently the                                                            
responsibility of the US Coast Guard.                                                                                           
                                                                                                                                
Co-Chair  Wilken  asked  the  Department's  position  regarding  the                                                            
legislation.                                                                                                                    
                                                                                                                                
Mr.  MacKinnon responded  that  the Department  has  issued a  "Best                                                            
Interest Finding"  from Commissioner Mike Barton,  signed in January                                                            
2003,  that reflects  a Department  funding  reduction  to TRAAK  by                                                            
approximately  $11.5 million  for remaining  half of federal  fiscal                                                            
year 2003.                                                                                                                      
                                                                                                                                
Senator Hoffman reiterated  his concern that rural projects would be                                                            
competing for  fewer TRAAK dollars; therefore, he  asked whether the                                                            
additional  monies available for CTP  could be specified  to address                                                            
rural needs.  He further  inquired as to  whether language  could be                                                            
added  to the  TRAAK  program  to ensure  that  the "mega-projects,                                                             
particularly  the  road  projects,"  do  not  absorb  the  available                                                            
funding.                                                                                                                        
                                                                                                                                
Mr.   Ottesen   conveyed   that  this   money   is   designated   as                                                            
Transportation Enhancement  (TE) funding. He communicated that rural                                                            
projects are eligible through  CTP and TRAAK; however, he noted, the                                                            
State  has spent  beyond the  federal  TE specifications  for  TRAAK                                                            
which  has  allowed   for  rural  boardwalks  and  trail   markings.                                                            
Therefore,  he suggested,  "a better approach  might be to  revisit"                                                            
the State formula to ensure  that rural projects could "compete on a                                                            
even basis with more urban and suburban projects."                                                                              
                                                                                                                                
Senator  B. Stevens  moved to report  CS SB  71(TRA) from  Committee                                                            
with previous fiscal note and individual recommendations.                                                                       
                                                                                                                                
Senator  Hoffman objected.  He  requested  that the  issue of  rural                                                            
trail funding be addressed  as the bill proceeds through hearings in                                                            
the House of Representatives.                                                                                                   
                                                                                                                                
Senator Hoffman withdrew his objection.                                                                                         
                                                                                                                                
Without further objection, the bill REPORTED from Committee with                                                                
previous fiscal note #1, from the Department of Transportation and                                                              
Public Facilities.                                                                                                              

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