SOUTHEAST CONFERENCE

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SOUTHEAST CONFERENCE

• September 20-23, 2004
• Sitka, Alaska

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SE Region Goals

• Identify build road links that will improve
  travel and reduce dependence on the Alaska Marine
  Highway System
• Improve the STIP process to assure Regional
  priority projects get built
• Improve the efficiency and effectiveness of our
  organization
• Improve our credibility with communities of
  Southeast Alaska

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MAJOR PROJECTS

• Garvee State Bond Projects
• Juneau Access
• Gravina Access
• Bradfield Road
• South Mitkof
• USFS/Targets of Opportunity

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• Economic Impact
• Access Resource Development

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TEA-21 Reauthorization Issues for Alaska

• To Southeast Conference
• Fall 2004

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Reauthorization Issues - Revenue

• Funding level remains sticking point
• High gas prices make gas tax increases difficult
• Bonds must overcome deficit concerns
• New concern current tax receipts running below
  expectation. (2004 funding cut 8 M as result)
• Populous states want 95 return minimum up from
  90.5 now!
• Alaskas high return level is harmed by this
  effort.

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6 Year Reauthorization FundingThe Scenarios
Funds decrease to AK
Funds increase to AK
375 B
325 B
275 B
225 B
350 B
300 B
250 B
President Bushs public upper limit
Senate Passed Bill
Firewalls In Senate bill
Congressman Youngs original goal
House Latest Plan
Wildcard How to structure 95 return to each
state!
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6 Year Reauthorization FundingThe Scenario Now
Funds decrease to AK
Funds increase to AK
375 B
325 B
275 B
225 B
350 B
300 B
250 B
President Bushs public upper limit
Current Range
Senate Passed Bill
Firewalls In Senate bill
Congressman Youngs original goal
House Latest Plan
Wildcard How to structure 95 return to each
state!
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What 275 Billion might mean for Alaska

• 216 B highway / 6 years 36 B per year
• 54 B for transit
• 5 B for safety
• 2004 provided 33 B for highways
• Growth of 10-20 over 2004
• Unknowns how donor-donee state split and are
  big earmarks deductible?

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Recent Issues Federal Highway Program

• 2004 funding slow to arrive including 115 earmark
  money
• Sec. 115 earmarks (61 M) deducted from 2004

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Recent Issues Federal Highway Program

• Byrd test invoked in August 2004 (-8 M to
  Alaska)
• 1986 law first time triggered in 2004
• Funds to every state reduced automatically when
  federal gas tax receipts less than estimated
• Appears result of higher fuel prices and reduced
  demand
• Could complicate the revenue debate over
  reauthorization

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Prospect for Reauthorization

• House, Senate bills each about 500 pages and very
  different issues and language in each.
• September session last significant opportunity
  to pass reauthorization.
• Else new committees, restart bill from scratch
  delay of many months or more!
• Election pressures and election outcomes now
  strong influence.

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Prospect for Reauthorization

• Senate bill
• Ferry funding increased
• Denali Commission Funds for transportation
• Higher funding level requires new revenue
• Less ideal on streamlining and setasides
• House bill
• Will not increase donor state share
• Re-opener after 2005 on funding levels
• Modest new revenue increases to achieve 275 B

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Prospect for Reauthorization

• Many observers feel progress is stalled
• Effort to reconcile the bills began last week
• But, shortages of time, money and consensus seem
  significant!