The Alaska Contractor - Summer 2008

Associated General Contractors of Alaska
2008 Legislative Session Report
In mid-February, AGC made a trip to the Capitol
as part of its annual “Legislative Fly-In” to discuss
issues of importance with the Alaska Legislature.
By JOHN MACKINNON, Executive Director
Integral to this effort were more than 22 AGC members
who made the trip on their own time and expense to
participate in the process. During the two-day event,
we split into teams, met with almost all 60 legislators,
shared a reception with the Alaska Trucking Association
and the Alaska Miners Association, and met with Gov.
Sarah Palin. As has been AGC policy, we brought with
us just three of the most important issues facing our
members and the state.
Our top three
Gas line contract – Alaska can’t afford to delay this
project any longer while a perfect contract is produced.
A good contract timely executed is better than the best
contract never executed. As this is being written, the
Legislature is getting ready to go into special session
to consider the TransCanada proposal under the Alaska
Gasline Inducement Act and the Denali Project brought
by BP and Conoco Phillips. They do not have an easy
task ahead of them.
A state funded transportation program – The current
transportation infrastructure of Alaska is inadequate
and requires continued planning, upgrades and expenditures
to assure the citizens of Alaska are provided with
essential services. To address its needs and realize its
potential, Alaska needs a transportation program that is
adequately and predictably funded, provides continuity
between succeeding administrations and considers all
modes of transportation.
The Associated General Contractors of Alaska supported
the establishment of the governor’s $1 billion
Transportation Endowment Trust Fund as a “good start,”
but only if there were assurances of future deposits into
the trust so that it could support an annual construction
program of at least $250 million. As an alternate, if it were
to be only funded as proposed, we suggested the fund
spend down like an annuity over the next 10 years to address
the important transportation needs that are here
and now. There was a healthy debate and the bill did not
advance for passage, but the good news is the Legislature
is very cognizant of the pressing transportation needs in
Alaska. They built upon the original capital budget and
constructed a healthy list of good projects dealing with
congestion improvements and deferred maintenance
that the governor approved in her signing the bill.
Funding for vocational/technical education – The
AGC and its partners have long worked for increased
funding for vocational training at the secondary level
and an emphasis at the post-secondary level to capture
those who did not receive such training. For the
last several years we have been successful. In 2006 and
2007, the Legislature took the initial steps to address the
problem and funded a pilot program at the King Career
Center in Anchorage, and then expanded to five similar
programs in other urban areas. Initially, these funds
were in the capital budget and had to be secured every
year. This year the Legislature moved the $3.5 million to
the operating budget, which is a clear recognition that
it is an ongoing program. The program represents a true
public/private partnering effort and initial indications
are that the model will help address the long-term labor
needs of the construction industry.
Other bills in the works that were of concern to the
AGG were:
House Bill 2/Senate Bill 124 – vocational education
– In the last two days of the regular legislative
session, these two bills regarding vocational education
were melded into one. Senate Bill 124 was stuck in the
House Finance Committee with no prospect of further
action. HB 2, which established a vocational education
fund and its beneficiaries, was in Senate Finance. SB 124
increased the percentage of wages employees contribute
for the Alaska technical and vocational education
program from 0.01 percent to 0.015 percent. The Senate
Finance Committee amended HB 2 to included SB 124
and changed the program beneficiaries. The governor
signed the bill May 28.
HB 61 – voc ed tax relief – Beginning Jan. 1, 2009,
businesses can get a credit against state taxes for cash