Legislature(2025 - 2026)BARNES 124

02/04/2025 02:00 PM House TRANSPORTATION

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Audio Topic
02:24:31 PM Start
02:26:00 PM Presentation: 2025 Construction Outlook and Economic Impact
02:52:32 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 2:24 pm --
-- Please Note Time Change --
+ Presentation: 2025 Construction Outlook and TELECONFERENCED
Economic Impact by Alicia Amberg, Executive
Director of Associated General Contractors;
Marcus Trivette, Brice Construction; and Jeff
Miller, Cruz Construction, Members of the
Associated General Contractors of Alaska
                    ALASKA STATE LEGISLATURE                                                                                  
            HOUSE TRANSPORTATION STANDING COMMITTEE                                                                           
                        February 4, 2025                                                                                        
                           2:24 p.m.                                                                                            
                                                                                                                                
                             DRAFT                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Ashley Carrick, Co-Chair                                                                                         
Representative Ted Eischeid, Co-Chair                                                                                           
Representative Genevieve Mina                                                                                                   
Representative Louise Stutes                                                                                                    
Representative Elexie Moore                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Kevin McCabe                                                                                                     
Representative Cathy Tilton                                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION: 2025 CONSTRUCTION OUTLOOK AND ECONOMIC IMPACT                                                                     
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
ALICIA AMBERG, Executive Director                                                                                               
Associated General Contractors of Alaska                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Co-offered the 2025 Construction Outlook                                                                 
and Economic Impact presentation.                                                                                               
                                                                                                                                
MARCUS TRIVETTE, Co-Chair                                                                                                       
Associated General Contractors of Alaska                                                                                        
Department of Transportation & Public Facilities Steering                                                                       
Committee                                                                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Co-offered the 2025 Construction Outlook                                                                 
and Economic Impact presentation.                                                                                               
                                                                                                                                
JEFF MILLER, Co-Chair                                                                                                           
Associated General Contractors of Alaska                                                                                        
Department  of   Transportation  &  Public   Facilities  Steering                                                               
Committee                                                                                                                       
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Co-offered the  2025 Construction  Outlook                                                             
and Economic Impact presentation.                                                                                               
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
2:24:31 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TED  EISCHEID called  the House  Transportation Standing                                                             
Committee meeting to  order at 2:24 p.m.   Representatives Moore,                                                               
Mina, Carrick,  and Eischeid were  present at the call  to order.                                                               
Representative Stutes arrived as the meeting was in progress.                                                                   
                                                                                                                                
^PRESENTATION: 2025 Construction Outlook and Economic Impact                                                                    
  PRESENTATION: 2025 Construction Outlook and Economic Impact                                                               
                                                                                                                              
2:26:00 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  EISCHEID  announced that  the  only  order of  business                                                               
would  be  the  2025  Construction Outlook  and  Economic  Impact                                                               
presentation.                                                                                                                   
                                                                                                                                
2:27:01 PM                                                                                                                    
                                                                                                                                
ALICIA   AMBERG,    Executive   Director,    Associated   General                                                               
Contractors of  Alaska, began  the PowerPoint  presentation [hard                                                               
copy  included in  committee file],  titled "AGC  of Alaska,"  on                                                               
slide 2 and stated that  Associated General Contractors of Alaska                                                               
(AGC) is  the largest  commercial construction  trade association                                                               
in the state.   To slide 3, she explained  that AGC has partnered                                                               
with Department  of Transportation  & Public  Facilities (DOT&PF)                                                               
to  develop  realistic  regulation, legislation,  and  standards.                                                               
She  moved to  slide  4 and  provided  statistics indicating  the                                                               
significance of  construction within Alaska's economy.   To slide                                                               
5,  she stated  the appropriated  funding is  $200 million  lower                                                               
than  the  previous  year, which  impacts  construction  jobs  in                                                               
Alaska.                                                                                                                         
                                                                                                                                
2:34:50 PM                                                                                                                    
                                                                                                                                
MARCUS  TRIVETTE,  Co-Chair,  Associated General  Contractors  of                                                               
Alaska,   Department  of   Transportation  &   Public  Facilities                                                               
Steering Committee,  picked up  the presentation  on slide  6 and                                                               
stated that workforce development is a  top priority for AGC.  He                                                               
said  that   AGC  has  been  tracking   Statewide  Transportation                                                               
Improvement Plan  (STIP) development  and was  repeatedly assured                                                               
by  DOT&PF  that the  plan  would  be approved  without  negative                                                               
impact.   Funding for projects would  need to be $1.3  billion to                                                               
maintain the  construction industry, but AGC  estimates less than                                                               
$700 million  in funding, which  will cause workers to  leave the                                                               
state.                                                                                                                          
                                                                                                                                
2:37:56 PM                                                                                                                    
                                                                                                                                
JEFF MILLER, Co-Chair, Associated  General Contractors of Alaska,                                                               
Department  of   Transportation  &  Public   Facilities  Steering                                                               
Committee,  moved  to  slide  7,   which  displayed  a  chart  of                                                               
construction  employment  in  Alaska   from  2014  to  2023  with                                                               
employment  returning to  pre-recession levels.   He  stated that                                                               
new apprentices struggled  to find work in  the 2024 construction                                                               
season which reflects the downturn in the industry.                                                                             
                                                                                                                                
2:39:49 PM                                                                                                                    
                                                                                                                                
MS.  AMBERG clarified  on slide  8 that  the statistics  from the                                                               
presentation  came from  the Economic  Benefits and  Construction                                                               
Spending Forecast Reports.                                                                                                      
                                                                                                                                
2:40:38 PM                                                                                                                    
                                                                                                                                
MS.  AMBERG,  in  response  to  a  question  from  Representative                                                               
Stutes, stated that the STIP has  had a significant impact on the                                                               
downturn in the construction industry.                                                                                          
                                                                                                                                
MR.  TRIVETTE, in  response to  questions from  various committee                                                               
members,  stated   the  current  downturn  in   the  construction                                                               
industry  is  the  first  one  seen  since  the  recession.    He                                                               
calculated that  every $300  million less  in funding  is roughly                                                               
one thousand fewer construction jobs.                                                                                           
                                                                                                                                
MR.  MILLER, in  response to  a question  from Co-Chair  Carrick,                                                               
stated that apprentices  who are unable to  find employment leave                                                               
the state.                                                                                                                      
                                                                                                                                
MR.  TRIVETTE,  in response  to  a  question from  Representative                                                               
Carrick,  stated  that leveraging  state  funds  to make  up  for                                                               
decreased  bids  would help  prevent  an  exodus of  construction                                                               
employees.                                                                                                                      
                                                                                                                                
2:48:00 PM                                                                                                                    
                                                                                                                                
MS.  AMBERG,  in response  to  questions  from various  committee                                                               
members,  provided her  understanding that  other states  are not                                                               
having  similar issues  with their  STIPs.   She stated  that the                                                               
Office of the  Governor had responded to a request  for a meeting                                                               
but had not scheduled a time yet.                                                                                               
                                                                                                                                
2:52:32 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Transportation Standing Committee meeting was adjourned at 2:52                                                                 
p.m.                                                                                                                            

Document Name Date/Time Subjects
20250204 AGC HTRA Committee.pdf HTRA 2/4/2025 2:00:00 PM
2025 Construction Outlook and Economic Impact
20250127 AGC and AGEC Memo to Governor Regarding DOT Highway and Airport Construction Program.pdf HTRA 2/4/2025 2:00:00 PM
20250127 AGC and ACEC Memo to Governor Dunleavy