The Senate Transportation Committee Tuesday approved amending the Alaska Constitution to create a new Transportation Fund, despite the existing prohibitions on dedicated funds.
Rep. Peggy Wilson, R-Wrangell, said the new political reality of federal budget shortfalls will mean Alaska will have to pay for more of its own highway, airport and ferry needs.
“Like it or not we are going to have to shoulder more of the responsibility for transportation funding in the state of Alaska,” Wilson told the committee.
Her proposal, House Joint Resolution 4, was approved by the full House last week. It was also co-sponsored by Rep. Cathy Munoz, R-Juneau.
Sen. Dennis Egan, D-Juneau, made the motion Tuesday to move the bill from committee. It now goes to the Senate Finance Committee.
HJR 4 would create a fund to be capitalized with $1 billion in a separate action. Also flowing into the fund, she said, would be other transportation related fees such as those collected from the Division of Motor Vehicles, motor fuel taxes, rental car taxes and others the Legislature puts into the fund.
The Alaska Constitution prohibits dedicated funds, but Alaska once had a dedicated transportation infrastructure fund.
Wilson said the new reality is that the state needs one again.
She said that reports the state is hearing from Washington, D.C. indicate the state could lose as much as half its federal transportation funding.
The new fund would give the state money with which it could build its own projects. State dollars go further because they avoid costly federal rules she said.
Department of Transportation Commissioner Marc Luiken, appearing earlier in the meeting on a different topic, said that national studies show that 84 percent of the nation’s economy is based on the transportation system, and Alaska was no different.
“Our economy really runs off our transportation system,” he said.
Wilson said she’d like to see a fund that could provide $100 million a year for transportation projects.
Senate Transportation Committee Chair Albert Kookesh, D-Angoon, said the public deserved the opportunity to decide on the measure.
“Let’s get it before the voters in November,” Wilson said.
The amendment proposal now goes to the Senate Finance Committee, and as a constitutional amendment will need to pass on the floor by a two-thirds vote.
• Contact reporter Pat Forgey at 523-2250 or patrick.forgey@juneauempire.com
Comments (7)
Add commentWe have more pressing needs
We have many more pressing needs than another give away to industries that hardly pay their fair share in taxes. And it will be industry that gains more from this dedicated fund and not the general public.
The general public needs and wants their tax dollars to go to education, health care, research, sewers etc... especially considering all the Federal cut backs. We should tax industry more for the road construction that they will benefit more from and not the public. The general public can hardly even afford to fill up a tank of gas for god sakes.
Governor Sean Parnell cut funding out of the budget for research projects on ocean acidification at UAF but we can dedicate a billion of our tax dollars to pave roads for the mining, oil, gas and timber industry, this is pure crap people.
@sefisher
If you don't have an infrastructure how are the kids going to get to school to get this education? The nurses and doctors to provide health care? The students to conduct research? The roads for the sewers to be built in?
Rockstar we do not need a
Rockstar we do not need a "dedicated billion dollar tax fund" for roads when we are cutting funds for needed programs.
Why not have a dedicated fund for education or health care?
We don't need the infrastructure if everyone is dead or stupid do we.
The Alaska Constitution
The Alaska Constitution prohibits dedicated funds for many good reasons......
This is "earmarking" and it is one of the most severe obstacles to flexibility of budgeting
It is a huge percentage of revenue "earmarked" for a special purpose that will not be available to the general fund
How can other interests be denied a dedicated fund if its ok to fund transportation, then why not for health care??
If we have dedicated funds then why have legislators or Governor?
The bottom line is that funding priorities should be decided annually based on the merits of the projects submitted and the needs of the day.
Transportation in our state is for the good of the people
Transportation is a crutial link in Alaska for the health, saftey and security of it's people. I see the need for safe dependable evacuation routes and basic connectivity to the world. We get our food and goods through transportation. Commerce provides all the jobs that pay for teachers, health care professionals, government services and private services that provide basic needs. Work in tourism, fishing, and mining provide taxes that support the community, without which the community is all the poorer. I'm sorry...but I see transportation as the life blood of this state. Our state more than any other.
SEFISHER?
You have such great ideas. I sure would like to know who is talking? Have the courage to attach your name to your ideas?
this needs to be voted on.
this needs to be voted on. Yikes.
I agree transportation is important but not a billion dollar dedicated fund.