Legislature(2021 - 2022)BELTZ 105 (TSBldg)
03/23/2021 01:30 PM Senate TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| SB74 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 74 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
March 23, 2021
1:41 p.m.
MEMBERS PRESENT
Senator Robert Myers, Chair
Senator Mike Shower, Vice Chair
Senator Peter Micciche
Senator Jesse Kiehl
MEMBERS ABSENT
Senator Click Bishop
COMMITTEE CALENDAR
SENATE BILL NO. 74
"An Act providing for and relating to the issuance of general
obligation bonds for the purpose of paying the cost of state
infrastructure projects, including construction, communications,
major maintenance, public safety, and transportation projects;
and providing for an effective date."
- MOVED CSSB 74(TRA) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 74
SHORT TITLE: G.O. BONDS: STATE INFRASTRUCTURE PROJECTS
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/05/21 (S) READ THE FIRST TIME - REFERRALS
02/05/21 (S) TRA, FIN
02/25/21 (S) TRA AT 1:30 PM BELTZ 105 (TSBldg)
02/25/21 (S) -- MEETING CANCELED --
03/02/21 (S) TRA AT 1:30 PM BELTZ 105 (TSBldg)
03/02/21 (S) Heard & Held
03/02/21 (S) MINUTE(TRA)
03/09/21 (S) TRA AT 1:30 PM BELTZ 105 (TSBldg)
03/09/21 (S) Heard & Held
03/09/21 (S) MINUTE(TRA)
03/11/21 (S) TRA AT 1:30 PM BELTZ 105 (TSBldg)
03/11/21 (S) Heard & Held
03/11/21 (S) MINUTE(TRA)
03/18/21 (S) TRA AT 1:30 PM BELTZ 105 (TSBldg)
03/18/21 (S) Heard & Held
03/18/21 (S) MINUTE(TRA)
03/23/21 (S) TRA AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
No witnesses to report
ACTION NARRATIVE
1:41:45 PM
CHAIR ROBERT MYERS called the Senate Transportation Standing
Committee meeting to order at 1:41 p.m. Present at the call to
order were Senators Shower, Micciche, Kiehl, and Chair Myers.
SB 74-G.O. BONDS: STATE INFRASTRUCTURE PROJECTS
1:42:20 PM
CHAIR MYERS announced the consideration of SENATE BILL NO. 74
"An Act providing for and relating to the issuance of general
obligation bonds for the purpose of paying the cost of state
infrastructure projects, including construction, communications,
major maintenance, public safety, and transportation projects;
and providing for an effective date."
CHAIR MYERS solicited a motion.
1:42:50 PM
SENATOR SHOWER moved to adopt the committee substitute (CS) for
SB 74, [work order 32-GS1716\B]. There being no objection,
Version B was adopted as the working document.
1:43:16 PM
SENATOR KIEHL moved to adopt Amendment 1 to SB 74, Version B,
[work order 32-GS1716\B.1].
32-GS1716\B.1
Marx
3/20/21
AMENDMENT 1
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: CSSB 74(TRA), Draft Version "B"
Page 1, line 10:
Delete "$303,797,585"
Insert "$190,716,492"
Page 4, line 30:
Delete "$145,168,488"
Insert "$32,649,988"
Page 5, line 5:
Delete all material.
Page 5, lines 8 - 13:
Delete all material.
Page 5, lines 16 - 26:
Delete all material.
Page 5, lines 29 - 31:
Delete all material.
Page 6, lines 2 - 4:
Delete all material.
Page 6, line 22:
Delete "$1,511,431"
Insert "$948,838"
Page 7, line 12:
Delete "$303,797,585"
Insert "$190,716,492"
Page 7, line 15:
Delete "$303,797,585"
Insert "$190,716,492"
1:43:20 PM
CHAIR MYERS objected for discussion purposes.
1:43:22 PM
SENATOR KIEHL explained that Amendment 1 would delete the
remaining projects in the GO [General Obligation] bond proposal
with federal match for [Federal Highway Administration (FHWA)]
transportation projects and [Airport Improvement Program (AIP)]
airport formula funding.
SENATOR KIEHL stated that the committee previously discussed
whether using GO bonding for projects with the federal match was
the best way to fund projects since these projects are in the
STIP or AIP and will be constructed using those processes. He
said he could not recall any instance where the state failed to
appropriate the match. Further, using GO bonds will not
accelerate the projects. He preferred to replace these projects
with ones that will move Alaska's economy forward or address
major challenges the state faces. He argued against using GO
bonds in this way.
1:44:56 PM
SENATOR MICCICHE stated that he could support Amendment 1 if the
projects had a very high match rate and were limited to
highways. He predicted that this bond package was to pass; it
would accelerate projects over and above the normal capital
budget process. While he said he struggles with the GO Bond
concept, some of the projects in SB 74 are critical ones,
including the Dalton Highway, bridges at Montana, Sheep, and
Goose Creeks, Seward Highway and Sterling Highway, he said. Some
of these highways are severely damaged and need public safety
improvements and repairs. He said he wished Amendment 1 only
pertained to [highway] projects, but it does not. When people
seek to reduce the state's budget, they don't envision reducing
funds for transportation or public safety but rather for
peripheral things the state can no longer afford. Therefore, he
could not support Amendment 1.
1:46:28 PM
SENATOR SHOWER said he echoes Senator Micciche's comments. He
stated that he considered offering several amendments but did
not do so due to the GO Bond funding source.
CHAIR MYERS removed his objection.
1:48:06 PM
At ease
1:48:17 PM
SENATOR KIEHL withdrew Amendment 1.
1:48:49 PM
SENATOR MICCICHE asked if the committee substitute (CS) for SB
74, Version B, incorporated the committee's amendments but did
not make any additional changes.
CHAIR MYERS agreed Version B incorporated only the amendments
the committee previously adopted.
1:49:30 PM
SENATOR SHOWER asked the record to reflect that while he
supports many of the projects in SB 74, he has a concern about
the GO Bond funding mechanism. Many of his constituents have
called him about the West Susitna Access Road, which he
acknowledged is an important project that will help Alaska's
economy grow and provide high-paying, sustainable jobs. However,
as previously mentioned, the state has a substantial
infrastructure needing repairs. The bond cost will run about
$100 million when the state currently faces a deficit. Last
week's testimony demonstrated that many of these projects were
already fully funded by other funding sources, including
forthcoming federal funds, yet they were included in SB 74.
1:52:24 PM
SENATOR MICCICHE emphasized that he did not support many
amendments offered on SB 74, based on the GO Bond funding
source. He reiterated that the state's infrastructure needs are
critical. His constituents travel on a highway with safety
issues. He surmised that when the bond package was initially
considered, the administration was unaware of forthcoming
federal COVID-19 funding or the federal infrastructure that
Congress will likely pass. This federal funding puts the state
in a very different position. While the GO Bond proposal would
accelerate some regular capital budget projects, likely that
savings would not materialize by using bonds, he said. After
thoroughly considering the financing process, he offered his
preference to only use GO Bonds on projects. He maintained his
view that the projects are important ones that will enhance
public safety. However, the committee decided that forthcoming
federal funding will allow the state to fund these projects
without the burden of using GO bonds.
1:55:39 PM
CHAIR MYERS remarked that the legislature uses a slow and
deliberative process.
1:56:00 PM
SENATOR SHOWER offered to forward the report highlighting the
cost of bonding to the committee. He echoed Senator Micciche's
comments that federal funding was not likely known when the
administration prepared the bill. He maintained that his
concerns were not based on the merits of projects but rather
that other funding sources were preferable.
1:57:22 PM
At ease
1:57:45 PM
CHAIR MYERS reconvened the committee and solicited a motion.
1:58:10 PM
SENATOR SHOWER moved to report the committee substitute (CS) for
SB 74, work order 32-GS1716\B, as amended, from committee with
individual recommendations and forthcoming fiscal note(s).
CHAIR MYERS said Legislative Legal is authorized to make any
necessary technical and conforming changes.
1:58:55 PM
At ease
2:05:07 PM
CHAIR MYERS reconvened the meeting.
[The committee treated it as though the motion had been
rescinded.]
2:05:18 PM
SENATOR SHOWER stated a revised motion. He moved to report the
committee substitute (CS) for SB 74, work order 32-GS1716\B,
from committee with individual recommendations and forthcoming
revised fiscal note(s).
CHAIR MYERS found no objection and CSSB 74(TRA) was reported
from the Senate Transportation Standing Committee.
2:05:34 PM
At ease
2:06:50 PM
CHAIR MYERS reconvened the meeting.
2:07:13 PM
There being no further business to come before the committee,
Chair Meyers adjourned the Senate Transportation Standing
Committee meeting at 2:07 p.m.
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