HOUSE JOINT RESOLUTION NO. 10 Proposing amendments to the Constitution of the State of Alaska creating a transportation infrastructure fund. 1:43:51 PM DANIEL GEORGE, STAFF, REPRESENTATIVE BILL STOLTZE, discussed the changes in the proposed CS compared to the House Judiciary Committee version (28-LS0133\N). He began with page 1, line 14 where the date July 1, 2014 had been changed to July 1, 2015. The second change appeared on page 2, line 2 where the words "from a studded tire tax" were inserted following the words "from a tire tax." The third change appeared on page 2, line 6 where the word "fifty" replaced "50." The final change appeared on page 2, lines 7 and 8 where the words "studded tire taxes" were inserted following the words "tire taxes." Vice-Chair Neuman MOVED to ADOPT the proposed committee substitute for HJR 10, Work Draft 28-LS0133\C (Martin, 2/26/14). Co-Chair Austerman OBJECTED for discussion. 1:45:56 PM REPRESENTATIVE PEGGY WILSON, SPONSOR, relayed that she agreed with the changes included in the CS. She hoped the bill would report out of committee. Representative Gara weighed in favor of protecting the state's savings and funding transportation on an annual basis. He surmised that if the goal was to get $80 million out of the fund annually that $2 billion would need to be deposited into the fund. He pointed out that in the current and past fiscal year the state's capital budget for transportation projects totaled $123 million; operating costs for the facilities would cost an additional $300 million. He discussed the benefit of setting aside specific funds for transportation compared to the burden of a quicker depletion of the state's $17 billion in savings. He detailed that under the governor's proposal the state's savings would be reduced to $13 billion or $14 billion; with the transportation fund the savings would be further depleted to $11 billion. He noted that the depletions did not include dealing with deficits in future years. He recognized the work that went into the bill, but he did not believe it was fiscally prudent. He trusted that the legislature would fund transportation as a priority. He mentioned competing funding needs from areas such as education, energy projects, rural development, job training, the university, and other. He believed the bill had every right to go to the House floor for a vote. 1:49:37 PM Representative Costello thanked the bill sponsor for her work. She noted that the bill was limited to the creation of a transportation fund. She shared that if the idea had been proposed five to ten years earlier she would not have been inclined to support it given that the state had been in a better fiscal situation. However, she was supportive of the fund given that the state was facing tougher financial times in the upcoming decade. She observed that under the current administration there had been three miles of road built. She discussed that in good financial times the state was spending money to pave and upgrade roads; however, it was not investing in new roads providing access to resources. She discussed that the development of the state's natural resources would help Alaska financially. She expressed her support for the concept. She had participated in the subcommittee over the interim that had traveled to various communities to hear about support for the fund. Co-Chair Austerman WITHDREW his OBJECTION to the adoption of the CS. There being NO OBJECTION, it was so ordered. Representative Costello discussed the new fiscal impact note totaling $1,500 from the Office of the Governor. She noted that the cost could increase to $22,000 related to the possibility of a ballot printing requirement. Vice-Chair Neuman MOVED to REPORT CSHJR 10(FIN) out of committee with individual recommendations and the accompanying fiscal note. There being NO OBJECTION, CSHJR 10(FIN) was REPORTED out of committee with "no recommendation" and with one new fiscal impact note from the Office of the Governor.