On February 9, the House Transportation Committee passed House Joint Resolution 42 proposing an amendment to the Alaska State Constitution to create a dedicated transportation infrastructure fund. If approved by Alaskan voters, the fund would set up a $1 billion endowment generating an annual percentage of market value for transportation improvements. Additionally, a portion of revenues generated from motor fuel taxes and vehicle registrations would be deposited into the fund on an annual basis. Since the principal of the fund would not be used, the corpus of the account would grow and generate increased returns each year.

Federal funding reauthorization has expired and is being extended on a month to month basis until new federal legislation is approved. All indications point to less revenues for Alaska. Proposed federal legislation favors larger metropolitan areas and transit development.

Alaska needs to proactively address transportation infrastructure needs. HB 329 establishes the framework for Alaska’s transportation fund, recommending annual appropriations to be applied to 60% road and surface projects, 13% aviation, 12% AMHS, 8% harbors and marine facilities, 5% transit and 2% trails.