03/25/2008 02:15 PM House TRA
| Audio | Topic |
|---|---|
| Start | |
| SB158 | |
| HB106 | |
| HB322 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
March 25, 2008
2:15 p.m.
MEMBERS PRESENT
Representative Kyle Johansen, Chair
Representative Mark Neuman, Vice Chair
Representative Anna Fairclough
Representative Wes Keller
Representative Mike Doogan
Representative Woodie Salmon
MEMBERS ABSENT
Representative Craig Johnson
COMMITTEE CALENDAR
SENATE BILL NO. 158
"An Act designating the bridge on the George Parks Highway
directly north of the Alaska Native Veterans' Honor Bridge as
the Shirley Demientieff Memorial Bridge."
- MOVED SB 158 OUT OF COMMITTEE
HOUSE BILL NO. 106
"An Act repealing fees imposed on the sale of new tires, the
sale of certain studded tires, and the installation of certain
metal studs on tires; and providing for an effective date."
- HEARD AND HELD
HOUSE BILL NO. 322
"An Act establishing the Alaska transportation fund and relating
to the fund; and providing for an effective date."
- HEARD AND HELD
HOUSE BILL NO. 314
"An Act providing for and relating to the issuance of general
obligation bonds for the purpose of paying the cost of state
transportation projects; and providing for an effective date."
- SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: SB 158
SHORT TITLE: SHIRLEY DEMIENTIEFF MEMORIAL BRIDGE
SPONSOR(s): SENATOR(s) KOOKESH
04/18/07 (S) READ THE FIRST TIME - REFERRALS
04/18/07 (S) TRA
04/24/07 (S) TRA AT 1:30 PM BUTROVICH 205
04/24/07 (S) Moved SB 158 Out of Committee
04/24/07 (S) MINUTE(TRA)
04/25/07 (S) TRA RPT 4DP
04/25/07 (S) DP: KOOKESH, WIELECHOWSKI, OLSON,
COWDERY
04/25/07 (S) FIN REFERRAL ADDED
02/19/08 (S) FIN RPT 7DP
02/19/08 (S) DP: HOFFMAN, STEDMAN, ELTON, THOMAS,
DYSON, HUGGINS, OLSON
02/19/08 (S) FIN AT 9:00 AM SENATE FINANCE 532
02/19/08 (S) Moved SB 158 Out of Committee
02/19/08 (S) MINUTE(FIN)
02/27/08 (S) TRANSMITTED TO (H)
02/27/08 (S) VERSION: SB 158
02/29/08 (H) READ THE FIRST TIME - REFERRALS
02/29/08 (H) TRA
03/25/08 (H) TRA AT 1:00 PM CAPITOL 17
BILL: HB 106
SHORT TITLE: REPEAL FEES FOR STUDDED TIRES
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/22/07 (H) READ THE FIRST TIME - REFERRALS
01/22/07 (H) TRA, FIN
04/26/07 (H) TRA AT 1:30 PM CAPITOL 17
04/26/07 (H) Heard & Held
04/26/07 (H) MINUTE(TRA)
03/25/08 (H) TRA AT 1:00 PM CAPITOL 17
BILL: HB 322
SHORT TITLE: TRANSPORTATION FUND
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/17/08 (H) READ THE FIRST TIME - REFERRALS
01/17/08 (H) TRA, FIN
03/25/08 (H) TRA AT 1:00 PM CAPITOL 17
WITNESS REGISTER
SENATOR ALBERT KOOKESH
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As sponsor of SB 158, presented the sponsor
statement and answered questions.
WILLIE LORD
Alaska Native Veterans Association
Military Order of the Purple Heart
Nenana, Alaska
POSITION STATEMENT: Spoke in support of SB 158.
JOANNA BALES, Deputy Director
Tax Division
Anchorage Office
Department of Revenue (DOR)
Anchorage, Alaska
POSITION STATEMENT: Offered testimony on HB 106.
JEFF OTTESEN, Director
Division of Program Development
Department of Transportation & Public Facilities (DOT&PF)
Juneau, Alaska
POSITION STATEMENT: Presented a PowerPoint titled, "Crossroads
Ahead, Why a State Funded Transportation Program is Right for
Alaska," and answered questions on HB 322.
NANCY SLAGLE, Director
Division of Administrative Services
Department of Transportation & Public Facilities (DOT&PF)
Juneau, Alaska
POSITION STATEMENT: Answered questions on HB 322.
ACTION NARRATIVE
CHAIR KYLE JOHANSEN called the House Transportation Standing
Committee meeting to order at 2:15:13 PM. Representatives
Johansen, Keller, Fairclough, Neuman and Doogan were present at
the call to order. Representative Salmon arrived as the meeting
was in progress.
SB 158-SHIRLEY DEMIENTIEFF MEMORIAL BRIDGE
CHAIR JOHANSEN announced that the first order of business would
be SENATE BILL NO. 158 "An Act designating the bridge on the
George Parks Highway directly north of the Alaska Native
Veterans' Honor Bridge as the Shirley Demientieff Memorial
Bridge."
2:15:38 PM
SENATOR ALBERT KOOKESH, Alaska State Legislature, sponsor of SB
158, informed the committee that Shirley Demientieff was an
advocate for the Native community and addressed issues such as
sexual exploitation, alcohol, and illegal drugs. He explained
that she was instrumental in naming the Alaska Native Veterans'
Honor Bridge and that she was in charge of the search and
recovery program in the Interior. He reported that she died
from cancer a few years ago. He noted that the Senate was
unanimous in its support of this bill, and that he had heard of
no opposition to the bill.
2:19:53 PM
WILLIE LORD, Alaska Native Veterans Association, Military Order
of the Purple Heart, said that both organizations supported
naming the bridge in honor of Shirley Demientieff for all the
work she had done for Native veterans and for the Native
communities in the Interior.
2:20:50 PM
CHAIR JOHANSEN closed public testimony. He expressed his belief
that Ms. Demientieff sounds like a wonderful person.
REPRESENTATIVE DOOGAN offered that Ms. Demientieff was a fine
woman from a good family and he thanked the sponsor for the
opportunity to honor her.
REPRESENTATIVE FAIRCLOUGH moved to report SB 158 out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, SB 158 was moved out of
committee.
HB 106-REPEAL FEES FOR STUDDED TIRES
2:22:00 PM
CHAIR JOHANSEN announced that the next order of business would
be HOUSE BILL NO. 106 "An Act repealing fees imposed on the sale
of new tires, the sale of certain studded tires, and the
installation of certain metal studs on tires; and providing for
an effective date."
JOANNA BALES, Deputy Director, Tax Division, Anchorage Office,
Department of Revenue (DOR), explained that the current
administration believes this tax is a penalty on those who want
heavier studs in their tires for safety.
CHAIR JOHANSEN closed public testimony.
[HB 106 was held over.]
HB 322-TRANSPORTATION FUND
CHAIR JOHANSEN announced that the next order of business would
be HOUSE BILL NO. 322 "An Act establishing the Alaska
transportation fund and relating to the fund; and providing for
an effective date."
2:23:49 PM
JEFF OTTESEN, Director, Division of Program Development,
Department of Transportation & Public Facilities (DOT&PF),
directed attention to slide 19, titled "Other States" that
illustrates various approaches for the funding of shortfalls
that other states are experiencing. He explained that user pay
mechanisms are becoming very common, and include tolls, public-
private partnerships, county bonds, road and bridge leases to
private concessions, and taxes on the miles driven within the
state. He offered his belief that none of these are a means of
generating large revenue in Alaska. He observed that the
proposed transportation fund will generate an annual revenue of
$50 million, which is equivalent to the revenue created by a gas
tax increase of 12 cents per gallon. He acknowledged that
Alaska does not have the user density of other states, but still
needs transportation facilities. He referred to slide 20,
"State Fund Advantages", which reflects the advantages of a
state fund. He offered his belief that projects will move
faster with less "red-tape," explaining that the federal program
is very rule bound and methodical. He pointed to slide 21,
"State Funds Advantages", which compares the time necessary for
state versus federal transportation projects. He explained that
slide 22, "State Funded Successes", shows recent successfully
funded state projects.
2:28:27 PM
MR. OTTESEN commented that slide 23, "Erratic State
Appropriations to Transportation", shows the erratic
appropriations for transportation funding, making it difficult
to manage projects. He explained that an advantage of the state
transportation fund is that the annual dividends are a more
reliable revenue source.
CHAIR JOHANSEN asked if the money in the state transportation
fund will be used to match federal funds.
MR. OTTESEN replied that the money will not be used to match,
but, instead, will fund projects that benefit from full state
funding.
2:29:10 PM
MR. OTTESEN referred to slide 24, "Federal Fund Limitations",
and offered his belief that federal highway programs are not
meeting the needs and expectations of Alaska. He called
attention to a report stating that since the completion of the
interstate project, the federal program has lost its central
premise.
MR. OTTESEN explained that slide 25, "Alaska Transportation
Fund", lists the core concepts of the fund: available to all
modes of transportation; includes local and state projects; uses
a programmatic versus a project approach; and uses existing
mechanisms for transportation planning as listed in AS
44.42.050. He explained that the project selection relies on
public involvement using a nationally recognized scoring
methodology.
2:31:21 PM
MR. OTTESEN explained that slide 26, "Why this Approach", notes
the ups and downs of funding, and he reminded the committee of
the difficulties during the 1987-88 era when the price of oil
dropped, construction firms left the state, and jobs
disappeared. He mentioned that the user fee approach is
impractical and improbable. He offered his belief that a $1
billion fund will generate a $50 million annual dividend, the
annual equivalent of a gas tax increase of 12 cents per gallon.
MR. OTTESEN referred to slide 27, "AS 44.42.050", the long range
state transportation plan. He described that the first step is
to develop a comprehensive, intermodal, long-range
transportation plan with public involvement. The second step is
for DOT&PF to develop every two years a list of projects which
are consistent with the plan.
2:33:31 PM
MR. OTTESEN directed attention to slide 28, "What a Program
Means" and explained the difference between a project approach
and a program approach. He said that general fund dollars are
directed to specific projects. Often the project will take many
years, and while the money is not used, inflation causes a loss
of the dollar value. He explained that the programmatic
approach uses every dollar every year. The money is used for
the different project levels, including planning, surveying,
purchasing, right of way, and construction, and this minimizes
the loss to inflation.
MR. OTTESEN pointed out that slide 29, "Funds applied annually
to projects...", further illustrates the programmatic approach
of dollars going to different stages of the project development
cycle. He called attention to slide 30, "Initial Priorities-2
Years". He proposed that for the first two years the
transportation fund spend dollars on immediate project
priorities. These would include public safety, preservation and
maintenance, and significant economic needs for development.
During this time, the department will also more fully develop
the regulations and the public process.
2:36:17 PM
MR. OTTESEN explained that slide 31, "Why Safety", details that
safety is an important part of the department's business. He
reflected that the societal cost in Alaska due to injuries and
deaths is about $500 million per year.
MR. OTTESEN discussed slide 32, "Why Preservation", and said
that the state assets need to be maintained, to ensure their
usefulness. He gave an example that $1 in timely pavement
maintenance can save $4 in future expense. He allowed that the
data is already available to guide when and where the
allocations need to be applied. He noted that there is often an
unfunded gap between the allowable use of federal funds and
state maintenance and operation funds. He offered his belief
that some of the federal rules are arcane, and that the state
needs to manage around them.
2:41:07 PM
MR. OTTESEN brought the committee's attention to slide 33, "Why
Congestion Relief?", and allowed that congestion can be a
maddening problem. He reported that DOT&PF is doing a good job
dealing with the congestion in Anchorage. He commented that
congestion can cause frustration, anger, and poor decision
making, all of which can be factors in accidents. He explained
that an indicator of congestion is that the increase of lane
miles is growing much more slowly than the number of miles
driven.
MR. OTTESEN assessed slide 34, "Why Economic Development?", and
noted that transportation investment is an essential element of
economic development. He cited examples including the Red Dog
Mine road and the airfreight road and utilities at the Ted
Stevens Anchorage International Airport. He mentioned that the
Alaska State Constitution provides for the legislature to make
these investments, and these investments can lead to good jobs
and good opportunities.
MR. OTTESEN mentioned that slide 35, "After First 2 Years",
reflects that the scoring and nomination processes will be put
in place to determine the use of the transportation dollars. He
explained that slide 36, "Update all Needs Assessments", shows
that an update of the needs assessments will take place. He
reported that the needs assessments will help allocate the ratio
of dollars to mode of transportation projects.
2:44:43 PM
REPRESENTATIVE NEUMAN asked whether the models for public
nomination of needs assessments and economic development have
been built.
MR. OTTESEN said that the department has examples of these
[needs assessment] scoring systems, but that the department is
considering changes to the current systems. He explained that
the first two years he referenced earlier would be spent in
public discussion of this proposed project regulation [scoring]
process to address the four themes: preservation, congestion,
economic development, and safety. The [needs assessment]
scoring system would not be set in place until the third year.
2:46:21 PM
REPRESENTATIVE NEUMAN offered his belief that public nomination
in an organized area of the state is going to have more public
input than an unorganized area. He asked how the department was
going to ensure equitable economic benefits for all the
communities and he asked to see a model of this scoring system.
MR. OTTESEN explained that the scoring system takes into account
the rural and urban community projects.
REPRESENTATIVE NEUMAN observed that the committee has seen a lot
of presentations showcasing DOT&PF operations. He said that he
would like to see a scoring model before the committee makes any
determinations for transportation funding.
MR. OTTESEN noted that HB 322 only establishes the
transportation fund. He allowed that it is the legislature's
decision for appropriation of the money. He offered his belief
that the bill sponsors will make the [scoring] regulations the
subject of a subsequent bill. He allowed that, in the meantime,
the department would bring projects which meet the four criteria
to the legislature for funding.
CHAIR JOHANSEN noted that all of the projects will have to be
appropriated by the legislature.
2:51:29 PM
MR. OTTESEN stated he was done with the presentation and offered
to bring the committee copies of the scoring systems.
CHAIR JOHANSEN noted that the fiscal note requested $500 million
dollars in FY 2008, and $500 million in FY 2009. He inquired
about the urgency of dollars for FY 2008.
MR. OTTESEN expressed his belief that $500 million was to be
included in the FY 2008 Supplemental Budget, and another $500
million to be included in the FY 2009 Budget.
2:52:44 PM
NANCY SLAGLE, Director, Division of Administrative Services,
Department of Transportation & Public Facilities (DOT&PF),
offered her belief that Governor Palin announced in her State of
the State speech that she intended to put $500 million for a
transportation infrastructure fund into the FY 2008 Supplemental
Budget, and another $500 million in the FY 2009 Budget. She
said that the fiscal note was written to reflect the governor's
request.
CHAIR JOHANSEN asked why the money was placed in the FY 2008
budget.
MS. SLAGLE expressed her belief that the governor knew there was
going to be a surplus of funds for FY 2008, and decided to put
transportation funds into an endowment fund for future use.
2:54:00 PM
REPRESENTATIVE DOOGAN asked for more explanation of the
desirability for a dedicated transportation fund rather than
annual appropriations.
MR. OTTESEN said the dedicated transportation fund will create
dividends to supplement the appropriations in lean funding
years. He explained that most projects take many years to
execute. He offered his belief that a dedicated fund that can
create dividends will help smooth out the transitional funding
patterns.
REPRESENTATIVE DOOGAN commented that dividends are only created
if the investment strategy is good. He posed that the governor
did not propose a constitutional dedication for the fund.
MR. OTTESEN replied that neither Department of Law (DOL) nor
Department of Revenue (DOR) representatives knew why a
constitutional dedication was not proposed.
2:55:55 PM
REPRESENTATIVE DOOGAN asked if the department would have an
answer by the March 27, 2008, committee meeting.
REPRESENTATIVE FAIRCLOUGH suggested that a funding mechanism
using a percent of market value formula will allow for more
projects at a quicker pace. She noted that after an initial
contribution to a fund, money is paid out as an annuity. She
offered her belief that this would result in more construction
and better maintenance than if a large amount of money was put
into a dedicated fund that spent a specific dollar value. She
asked if the committee was planning to discuss this.
CHAIR JOHANSEN offered for Representative Fairclough to chair a
voluntary work session.
REPRESENTATIVE FAIRCLOUGH accepted the offer.
2:57:29 PM
REPRESENTATIVE NEUMAN expressed his belief that the governor had
reported earlier to the House of Representatives caucus that the
only administrative capital project in the FY 2008 Supplemental
Budget would be for the Senior Benefits Program, however, he
noted that the fiscal notes for HB 322 reflected $500 million
dollars from the FY 2008 Supplemental Budget.
[HB 322 was held over.]
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting was adjourned at
2:58:34 PM.
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