Legislature(2025 - 2026)BARNES 124
01/27/2026 01:00 PM House TRANSPORTATION
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Match Funds and Impacts of Vetoes on Projects | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
January 27, 2026
1:01 p.m.
DRAFT
MEMBERS PRESENT
Representative Ashley Carrick, Co-Chair
Representative Ted Eischeid, Co-Chair
Representative Genevieve Mina
Representative Louise Stutes
Representative Kevin McCabe
Representative Steve St. Clair
Representative Garret Nelson
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
PRESENTATION(S): MATCH FUNDS AND IMPACTS OF VETOES ON PROJECTS
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
RYAN ANDERSON, Commissioner
Department of Transportation & Public Facilities
Juneau, Alaska
POSITION STATEMENT: Co-offered a presentation, titled "Match
Funds and Impacts of Vetoes on Projects."
DOM PANNONE, Director
Division of Program Management and Administration
Department of Transportation & Public Facilities
Juneau, Alaska
POSITION STATEMENT: Co-offered a presentation, titled "Match
Funds and Impacts of Vetoes on Projects."
KATHERINE KEITH, Deputy Commissioner
Office of the Commissioner
Department of Transportation & Public Facilities
Juneau, Alaska
POSITION STATEMENT: Co-offered a presentation titled, "Match
Funds and Impacts of Vetoes on Projects."
ACTION NARRATIVE
1:01:33 PM
CO-CHAIR TED EISCHEID called the House Transportation Standing
Committee meeting to order at 1:01 p.m. Representatives Stutes,
Nelson, McCabe, Mina, St. Clair, Carrick, and Eischeid were
present at the call to order.
^PRESENTATION(S): Match Funds and Impacts of Vetoes on Projects
PRESENTATION(S): Match Funds and Impacts of Vetoes on Projects
1:02:37 PM
CO-CHAIR EISCHEID announced that the only order of business
would be the Match Funds and Impacts of Vetoes on Projects
presentation.
1:03:49 PM
RYAN ANDERSON, Commissioner, Office of the Commissioner,
Department of Transportation & Public Facilities (DOT&PF), gave
a PowerPoint presentation, titled "Match Funds and Impacts of
Vetoes on Projects" [hard copy included in the committee file],
beginning on slide 2, "FFY 2025 Project Delivery Program
Review", which demonstrated a map of the 148 projects under
construction in 2025. Slide 2 also listed the focused
infrastructure areas and included a chart showing contract
awards, payments, and obligations per federal fiscal year (FFY)
since 2022. Commissioner Anderson stated that DOT&PF would like
to follow through with the legislature's goals of getting more
projects out and noted that there are tools online for the
public to see current construction schedules.
MR. ANDERSON moved to slide 3, "FFY2025 Project Delivery Program
Review," which showed a graph of overall contract awards for
each of the last four years, with 2025 receiving the highest.
There were $897,230,167 in contract awards in FFY 2025. The
chart broke down the awards by type, including marine
facilities, highways, aviation, and public facilities.
1:07:14 PM
COMMISSIONER ANDERSON, in response to a question from Co-Chair
Eischeid, stated that awards for the Alaska Marine Highway
System (AMHS) primarily came from other funding sources in 2025.
1:07:59 PM
COMMISSIONER ANDERSON moved to slide 4, which showed a graph of
Federal Highway Administration (FHWA) funds obligated per FFY
between 2019-2025. He noted that 2025 was the year with the
highest obligations on record.
1:08:54 PM
COMMISSIONER ANDERSON, in response to a question from Co-Chair
Eischeid, described the process for funds to become obligated.
1:09:49 PM
COMMISSIONER ANDERSON, in response to a series of questions from
Representative Stutes, stated that the Cascade Point project
utilized state funds, which have different requirements than
federal funds, and he described a process called design-build
that was employed for this project. He noted that funds must
first be secured before awarding a contract. He stated that the
construction of the Cascade Point project was subsequent to
vetoes so the funding was already secured.
1:11:37 PM
DOM PANNONE, Director, Division of Program Management and
Administration, Department of Transportation & Public
Facilities, added that the appropriations were already in hand
at the start of the Cascade Point project, in accordance with
statute. A contract was then made with design-build for the
final amount.
1:12:21 PM
MR. PANNONE, in response to a question from Representative Mina,
explained that the August redistribution allows DOT&PF to access
the funds that are put in a federal savings account every year.
Because there were less August redistribution funds in 2024,
DOT&PF had access to more of those funds in 2025.
1:13:38 PM
COMMISSIONER ANDERSON, in response to a series of questions from
Representative McCabe, stated that although DOT&PF's goal is
undisrupted project delivery, funding changes can cause project
delays. He said that funding changes caused the restart of the
Knik Goose Bay (KGB) road project. He said that in 2023,
Governor Mike Dunleavy signed a memorandum of understanding with
Goldbelt Heritage Foundation, recognizing the joint benefit of
Cascade Point, which initiated collaboration between the
foundation and DOT&PF. He said that he hopes this partnership
will inspire future partnerships as well. Commissioner Anderson
emphasized how expensive AMHS is to run, explaining that longer
roads with shorter ferry routes would reduce operational costs.
1:18:30 PM
COMMISSIONER ANDERSON, in response to a question from Co-Chair
Carrick, stated that since 2023, DOT&PF has spent about $4.5
million on Cascade Point. He said he does not have the date of
the design-build solicitation, which occurs when a project is
"shovel ready."
1:19:55 PM
MR. PANNONE noted that DOT&PF did have obligations against the
appropriation. The balance of the obligation was encumbered
when DOT&PF finalized the design-build contract, which occurred
before the vetoes.
CO-CHAIR CARRICK asked how a design-build contract differs from
an obligation on a project.
MR. PANNONE responded that DOT&PF had a contract in place at
that point and that once a contract is signed, funds are
encumbered and obligated.
COMMISSIONER ANDERSON added that encumbrance through the
contract secures the funds.
CO-CHAIR CARRICK asked about the Alaska Marine Highway
Operations Board's (AMHOB's) letter of opposition to the Cascade
Point project.
COMMISSIONER ANDERSON responded that AMHOB recognizes the
importance of shortening routes and has spoken against Cascade
Point.
1:22:37 PM
REPRESENTATIVE STUTES stated that the way Cascade Point is
moving forward is disgusting, particularly the disregard of
AMHOB's opposition to the project.
1:23:40 PM
COMMISSIONER ANDERSON, in response to a question from
Representative St. Clair, briefly explained the steps between
securing funds and putting a project out to bid, which differs
between agencies.
1:24:57 PM
COMMISSIONER ANDERSON, in response to a question from
Representative McCabe, stated that design-build has been around
for a while.
1:25:43 PM
COMMISSIONER ANDERSON moved to slide 5, which showed a graph of
funds obligated by FFY for airports between 2019-2025. He noted
that 2025 was a record year for the DOT&PF's airport program
with $321.4 million in airport grants secured in FFY 2025.
1:26:18 PM
COMMISSIONER ANDERSON, in response to a question from Co-Chair
Eischeid, stated that this year DOT&PF will be going through
surface transportation reauthorization where funding will be
renegotiated.
1:26:48 PM
COMMISSIONER ANDERSON moved to slide 6, which showed a graph of
advance construction (AC) and AC conversion by FFY from 2019-
2025. He spoke about the advantages of AC, which allows
projects to begin immediately when shovel ready.
1:27:52 PM
COMMISSIONER ANDERSON, in response to a series of questions from
Co-Chair Eischeid, said that a disadvantage of AC is the balance
that needs to be paid in the future, which DOT&PF is always
looking for opportunities to pay off. He added that there is no
charge assessed on the state from FHWA for using AC and that
there is no interest charge like a credit card. Commissioner
Anderson stated that there is a process to approve a project for
AC.
1:31:05 PM
COMMISSIONER ANDERSON, in response to a question from Co-Chair
Carrick, explained that a project must undergo the same
processes of certifications, whether or not AC funds are being
used.
CO-CHAIR CARRICK asked if contractors experience increased risk
of not being paid when AC is used on a project.
MR. PANNONE explained that using AC for a project does not put
the contractor at any additional risk. He said that there is
virtually no risk to the state either.
1:33:44 PM
MR. PANNONE, in response to a question from Representative
McCabe, stated that there is no cap on AC funding. The DOT&PF
cycles projects through because once a project has completed
construction, there is a conversion timeline, and cycling keeps
expenditures down on the reauthorization process.
COMMISSIONER ANDERSON added that contract authority is portioned
out over the year. AC allows DOT&PF to bid on a project before
receiving contract authority.
1:35:39 PM
COMMISSIONER ANDERSON, in response to a question from Co-Chair
Eischeid, stated that since the pandemic, inflation has affected
the cost of projects. He said AC has been a tool to still carry
out those inflated projects
1:36:43 PM
MR. PANNONE, in response to a question from Co-Chair Carrick,
stated that DOT&PF must have the federal match funds at the time
of AC. He explained the mechanics of the funding.
1:38:13 PM
COMMISSIONER ANDERSON, in response to a series of questions from
Representative Stutes, stated that DOT&PF has enough match funds
through July 1, but not enough to fund projects for the
remainder of the year. He explained that projects that DOT&PF
bids now were obligated two months ago. He said that DOT&PF is
not concerned about the funding for projects after July 1, but
this means that there could be fewer projects on the street
later in the construction season.
1:41:17 PM
MR. PANNONE, in response to a question from Co-Chair Carrick,
said that when DOT&PF awards and enters a contract, it has the
full amount of funds in its account or full AC authorizations.
He emphasized that contractors are not at risk of DOT&PF not
being able to pay.
COMMISSIONER ANDERSON agreed that after July 1, DOT&PF cannot
award more contracts. He said that is the problem. He
explained that DOT&PF obligates funds first and then bids once
the funds are secured. So, funds could neither be obligated nor
bid after July 1.
1:45:34 PM
COMMISSIONER ANDERSON, in response to a series of questions from
Representative Stutes, said that certainty is a good thing for
the federal programs but noted that the August redistribution is
an unknown until August. He reiterated that DOT&PF has enough
match funds to make it through its project load until July 1 and
that certainty is a good thing.
1:47:36 PM
COMMISSIONER ANDERSON, in response to a series of questions from
Representative McCabe, said that the governor submitted a
supplemental bill for the match that DOT&PF would need through
July 1. He said if DOT&PF receives those funds, there should be
no disruption in workflow. He said that contractors are also
looking for certainty about their planning, so they are also
being affected by this unknown.
1:49:45 PM
CO-CHAIR EISCHEID asked if an earlier supplemental bill would
help contractors execute the jobs that DOT&PF is asking of them.
COMMISSIONER ANDERSON responded that DOT&PF is projecting that
starting July 1, it will bid on projects that would utilize the
additional match funds. He said that he can understand
contractors' concerns regarding certainty.
CO-CHAIR EISCHEID stated that he would find it helpful to hear
from the contractors early in the session as well to flesh out
some of these concerns.
1:52:23 PM
COMMISSIONER ANDERSON moved to slide 7, "FFY 2026 Construction
Pipeline," which showed two graphs: one of infrastructure
spending by decade since 1980 and the other of chained index
value over time from 2011-2024. He said that DOT&PF is
considering inflation trends as it forecasts future projects.
COMMISSIONER ANDERSON moved to slide 8, which showed a chart of
forecasted contract awards for FFY 2026. He noted that he added
a shovel ready projects piece to more accurately project awards
going into the following year.
1:54:55 PM
MR. PANNONE continued on slide 9, titled "Capital Major Program
Expenditures," which showed a chart of expenditures per major
program for each of the last three FFYs. He noted that
expenditures can come from multiple years of appropriations. He
identified the acronyms of each major program listed.
1:56:45 PM
MR. PANNONE, in response to a question from Co-Chair Eischeid,
stated that in the years DOT&PF reduced AC, there may have been
fewer contracts.
1:57:38 PM
COMMISSIONER ANDERSON moved to slide 10, titled " FFY 2026
Fiscal Outlook," which showed that the federal programs total
combined investment is about $1.98 billion, including both
surface and air transportation programs. Slide 10 also listed
highlights and focuses of both programs.
1:58:36 PM
MR. PANNONE moved to slide 11, "FFY2026 Project Delivery," which
showed a chart of the state fiscal year 2026 (FY 26) capital
match summary. He noted that DOT&PF adjusted the statewide
transportation improvement plan (STIP) to reflect the reductions
in match funds for the surface transportation program and
airport improvement program.
1:59:45 PM
COMMISSIONER ANDERSON, in response to a question from Co-Chair
Carrick, stated that DOT&PF is employing more variable match
rates in its programs and he is unaware of Alaska jeopardizing
its 9:1 match rate.
2:01:22 PM
MR. PANNONE moved to slide 12, "FFY2026 Match," which outlined
the history of the FFY 26 match.
2:02:22 PM
COMMISSIONER ANDERSON, in response to a series of questions from
Representative Stutes, stated that the public review draft of
the new STIP should be published February 13, 2026. He noted
that DOT&PF considered amendments from the previous STIP review.
He said that because DOT&PF is using a rolling STIP, there is
not a federal due date.
2:04:14 PM
KATHERINE KEITH, Deputy Commissioner, Office of the
Commissioner, Department of Transportation & Public Facilities,
picked up the PowerPoint on slide 15, which outlined primary
events pertaining to STIP since March 27, 2024. She said there
have been two amendments since the original STIP approval in
2024 and DOT&PF has been actively working to finalize the next
STIP. She highlighted important dates from the rolling STIP
process. She said DOT&PF needed to defer about 25 projects with
the second STIP amendment because not all funds were
appropriated. Due to the constraints on funding, Ms. Keith
confirmed that DOT&PF would be reevaluating its priorities
pertaining to projects.
2:08:34 PM
MS. KEITH, in response to a series of questions from Co-Chair
Carrick, explained that the rolling STIP does not change DOT&PF
processes but offers more opportunities for public engagement
and increases the frequency of the process. She noted that
DOT&PF has been incorporating its ongoing findings into new
iterations of STIP. Some topics, including the STIP format, are
still uncertain. She highlighted that this new STIP should be
more straightforward, with more plain language. She stated that
FFY 25 saw great improvements in dialogue between DOT&PF and
FHWA and described the process of quickly approving the previous
rolling STIP. She highlighted that DOT&PF will be publishing a
pre-release version of STIP, increasing opportunity for public
engagement.
2:14:52 PM
REPRESENTATIVE MCCABE expressed his belief that the 2024 STIP
failure was not fully the fault of DOT&PF.
COMMISSIONER ANDERSON responded that there was a lot of noise
about STIP. He highlighted that every year, DOT&PF is growing
the program and securing more contract awards, and that DOT&PF
stays focused on results.
2:16:59 PM
CO-CHAIR EISCHEID asked where the idea for the rolling STIP
originated.
MS. KEITH responded that several states have implemented a
rolling STIP, and DOT&PF reviewed best practices from those
other states.
COMMISSIONER ANDERSON highlighted that the State of Alaska won a
national award for how it develops its STIP.
2:18:50 PM
MS. KEITH moved to slide 16, which outlined the developmental
process of a rolling STIP. She highlighted that DOT&PF requires
cost estimates and considers project eligibility before issuing
a new STIP. She moved to slide 17, which listed FHWA
recommendations for the 2026-2029 STIP. She said that DOT&PF
has a 10-year plan internally to evaluate asset management,
which she hopes will be made available to the public soon. She
expressed hope to simplify the next rolling STIP and to
streamline future amendments.
2:22:04 PM
MS. KEITH, in response to a question from Co-Chair Eischeid,
stated that DOT&PF will be using artificial intelligence (AI)
for error prevention.
CO-CHAIR EISCHEID noted that he has never used AI in his
professional work.
2:24:02 PM
MS. KEITH reiterated that at this time, there is not any
additional appropriation for the remainder of the match needed
for the STIP. To fund the remainder of the program, she said
that DOT&PF will be leveraging its ability to use toll credits
and AC conversions. She said that paying AC back does not
require match funds.
2:25:54 PM
MS. KEITH, in response to a series of questions from
Representative Carrick, said that the goal is to get a STIP out
but when more match is available, DOT&PF would go through the
amendment process. She said she would like to prepare a list of
eligible projects and programs ready that could be included in
the next amendment under additional match funds. She said
DOT&PF has brainstormed when it should release the next STIP for
public comment and that having certainty of what the match funds
will be would prevent rework of the STIP in the second amendment
phase. She hopes to have no delays in project delivery despite
this uncertainty.
2:29:40 PM
MS. KEITH, in response to a question from Representative Stutes,
clarified that DOT&PF can move forward with public comment for
STIP, and this would be the approved STIP if there are no
changes in match funding.
REPRESENTATIVE STUTES clarified that additional match funds is
what would prompt an amendment to STIP.
2:30:41 PM
MS. KEITH, in response to a series of questions from
Representative McCabe, confirmed that rolling STIPs would not
necessarily avoid the need for new amendments, explaining that
many different factors can require amendments. She said that
the procedure he described is still in place for STIP amendments
and that DOT&PF hopes for more flexibility in the STIP amendment
process.
2:35:01 PM
MS. KEITH, in response to a question from Representative Mina,
stated that AC changes fiscal constraint requirements; it can
allow projects to move forward, so long as federal match funds
are available.
2:36:43 PM
COMMISSIONER ANDERSON moved to slide 19, which listed projects
for the 2026-2029 STIP with estimates between $100 million and
$250 million and with estimates greater than $250 million. He
noted that DOT&PF has more $100 million projects than it ever
had.
2:38:29 PM
COMMISSIONER ANDERSON, in response to a series of questions from
Representative Mina, confirmed that the safety corridor project
is part of the Safer Seward Highway project. He described the
requirements for the Safer Seward Highway project.
2:40:28 PM
CO-CHAIR CARRICK asked why the state is pursuing the Cascade
Point project in its design-build phase if DOT&PF is short on
its match funds. She asked why this project is taking
precedence over critical pedestrian safety projects.
COMMISSIONER ANDERSON responded that all projects are priorities
and DOT&PF determines priorities based on a project delivery
schedule.
CO-CHAIR CARRICK reiterated that the public does not believe its
input and the priorities of DOT&PF are aligning.
2:44:58 PM
COMMISSIONER ANDERSON, in response to a question from
Representative McCabe, described DOT&PF's relationship with
Goldbelt Heritage Foundation.
2:46:46 PM
REPRESENTATIVE STUTES asked whose priority Cascade Point is.
She stated that Cascade Point is not the priority for the
surrounding villages and that the issue has split Juneau, with
most of its community opposing the project. She noted that
there is AMHS infrastructure falling apart that would be a
better place to use funds.
COMMISSIONER ANDERSON said that there is funding for building
and certifying 12 or 13 ferry docks. He stated that shorter
ferry runs would reduce AMHS operational costs.
REPRESENTATIVE STUTES emphasized that the goal of AMHS is to
service Alaskans, not to make money, and that federal funding is
running out.
COMMISSIONER ANDERSON said DOT&PF is working on the federal
funding issue.
REPRESENTATIVE STUTES asserted that over the last 12 years, the
current administration's objective has been to discontinue AMHS.
2:52:05 PM
COMMISSIONER ANDERSON, in response to a question from
Representative McCabe, agreed that the long-term plan is to
reduce AMHS operational costs to save money and eventually
replace vessels.
2:53:55 PM
MS. KEITH, in response to a question from Representative Mina,
explained the discrepancy between slides showing FHWA funds in
2025, stating that one slide showed all available revenue and
the other showed an obligated dollar amount.
2:57:16 PM
CO-CHAIR CARRICK thanked DOT&PF guests for their presentation
and the critical conversation they had. She asked DOT&PF to
inform the committee how it can continue to help moving forward.
2:59:30 PM
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting was adjourned at 2:59
p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 20260127 House Transportation - FFY2026 and STIP Update.pdf |
HTRA 1/27/2026 1:00:00 PM |
FFY2026 and STIP Update DOT&PF |
| 2026 GFCC Meet the Match Protecting Alaska's Economy Letter of Support - Cover Letter.pdf |
HTRA 1/27/2026 1:00:00 PM |
|
| Legal Services Memo to Co-Chair Hoffman 01212026 re Governor's Authority to veto a repeal of an appropriation item.pdf |
HTRA 1/27/2026 1:00:00 PM |