minutes of the meeting highways and transportation...

MINUTES OF THE MEETING HIGHWAYS AND TRANSPORTATION COMMITTEE

MONTANA STATE SENATE

February 19, 1983

The meeting of the Highways and Transportation Committee was called to order by Chairman Mark Etchart on February 19, 1983 at 12:18 p.m. in Room 410, State Capitol.

ROLL CALL: Roll was called with the following Senators present: Senator Etchart, Senator Shaw, Senator Manning, Senator Stimatz, Senator Daniels. Senator Tveit and Senator Hager came in late. Senator Elliott and Graham were absent.

SENATE BILL NO. 454: Hearing commenced on Senate Bill No. 454, introduced by Senator Judy Jacobson, by request of the Governor's Office. This bill establishes a Highway Revenue Bond Act providing for the issuance of up to $150 million in bonds to finance Highway Construction and to be repaid from the income to the Highway Earmarked Fund. Senator Jacobson handed each committee member a copy of proposed amendments to Senate Bill No. 454, and told them they would be explained in the context of the bill. See Exhibit 1. This bill only affects federal funding. The Montana Department of Highways has a $200 million budget with many revenue sources and expense accounts. There is $100.3 million in federal apportionments. Presently, the State's annual federal funding includes about $17.7 million for Interstate construction and an additional $82.6 million for all other federal programs. Only eight states have a larger percentage than Montana of their interstate system still unfinished. This plan is designed to accelerate the construction of Interstate Projects totaling $58.8 million dollars originally scheduled for fiscal years 1986 through 1988 so the work can begin in fiscal years 1984 and 1985. This bill is not a replacement for proposed revenue increases. An important question is how the new federal user fees and the new proposed state revenues on fuel and other sources may affect this proposal. Federal Interstate construction funding for Montana from the federal revenue increases in 1983 will be minimal for the next several years. In addition, enactment of any other Department of Highways revenue proposals presently before the Legislature would not affect this financing; those revenue measures remain necessary to pay for current level programs and the reconstruction trust program.

Senator Jacobson went on to say this bill has many benefits. Among the many reasons to undertake this financing program are (I) to obtain the use of some important Interstate highways earlier, (2) to give the state's economy a major boost almost immediately, and (3) to save approximately $15.3 million in inflation costs.

Highways and Transportation February 19, 1983

She went on to say the proposed financing structure would have the Department of Highways issue $145 million in Revenue Bonds which would be secured by Highway program revenues. The net cost to the State of the proposed structure would be $0.5 million, based on conservative assumptions regarding interest rates, current IRS regulations, the Department's construction program, and revenue receipts. The actual cost could vary depending upon the final financial structure used and the legal requirements which are prevalent at the time the bonds are issued. The financing would include moneys for both the $58.8 million of Advanced Construction-Interstate (ACI) projects as well as other Department projects in order to allow the Department to better manage its cash flow and thereby generate investment earnings which would aid in the repayment of the bonds. All costs of the program will be locked in at the time the bonds are sold (by September 1983), virtually eliminating the risk of any unforeseen costs.

Under this financing plan, the State of Montana can borrow money through bonds at a rate lower than the return it can realize on investments. With effective cash flow management funds will be generated through investment earnings to help repay the bonds.

Once the federal government has approved the projects, it is contractually obligated to make reimbursement for them, removing the obligation from the State, even if federal interstate funding laws change. These reimbursements can also be used to help repay the bonds.

The cost to the State of this borrowing will depend upon the financing structure as well as the borrowing costs and the investment rates available for borrowed funds. Conservative assumptions regarding market conditions and reinvestment rates have resulted in the estimated net cost of $0.5 million. Not included in these assumptions is any allowance for additional reimbursement by the Federal Highway Administration for the State's interest costs, or for more favorable investment earnings that would result if ACI reimbursements are made in a lump sum instead of the anticipated 36-month reimbursement period.

The State will realize the following benefits: An estimated 790 new jobs now, when and where they are needed most. A direct payroll from the accelerated program of more than $20 million plus the "multiplier effect." Much earlier use of five key sections of Montana Interstate with an economic value of many millions of dollars. A presently-favorable construction bidding climate, which will enable Montana to construct more interstate with the same dollars than under ordinary financing. And, a savings of $15.3 million in inflation costs.


The proposed bill (SB454) provides flexibility for the Department in selecting the best financing structure available at the time of issue. The Department will review market conditions at that time in order to insure that the alternative with the lowest risk/costs is se1ected. Based upon current market conditions, the structure proposed here creates the highest value for virtually no risk. Also, authorizing a financing program now will allow flexibility in obtaining the lowest cost financing and the most effective cash flow management and thus the lowest net cost to Montana.

The Proposed ACI Projects are:

Bernice-Basin, 1-15, $17.5 million in cost, with a 1984 letting date.

Elk Park-North, 1-15, $7.9 million in cost, with a 1984 letting date.

Bernice-South, 1-15, $10.8 million in cost, with a 1984 letting date.

Springdale-West, .I-90, $7.8 million in cost, with a 1985 letting date.

Lodge Grass - South, I-90, $14.7 million in cost, with a 1985 letting date.

This is a total of $58.7 million in total cost.

Gary Wicks, Director, Department of Highways spoke in support of Senate Bill No. 454. He passed out a summary of the information Senator Jacobson presented and two charts. See Exhibit 2. He read the summary and went through the charts. He explained each one of the amendments to the committee. Refer back to Exhibit 1.

Ben Havdahl, Montana Motor Carriers Association, told the committee they would like to go on record as supporting this bill.

Representative John Harp told the committee he supports this bill.

Jim Murry, representing the Montana State AFL-CIO, told the committee they support this bill. He passed out written testimony to the committee, which he read to them. See Exhibit 3.

Jim Mayes, representing the Operating Engineers, Local 400, spoke in support of the bill. He read from prepared testimony. See Exhibit 4.


William Olson, Montana Contractors Association, told the committee this bill addresses transportation problems. The bonding proposal is cost effective and we recommend a "DO PASS" to this committee.

Keith Olson, representing the Montana Logging Association told the committee they support this bill. The intent of the bill, to complete the interstate highway system ahead of schedule, along with the prudent, economic reasons behind it, are very good. We respectfully urge this committee to support Senate Bill 454 with the proposed amendments.

Gene Fenderson did not speak to the committee, but submitted written testimony in support of the bill. See Exhibit 5.

There were no further proponents and no opponents.

Senator Shaw asked Gary Wicks what the interest rate, and cost of these bonds would be.

Gary Wicks, Department of Highways, told the committee the interest rate can only be an assumption. He asked the committee to refer to Exhibit 2, next to the last page. We have made an assumption that 7% would be an average interest rate.

Senator Manning asked Mr. Wicks what the term of the bonds would be.

Gary Wicks said up to 40 years, but we are not anticipating doing that. We anticipate about 7 years. This is a break even program, and costs the state nothing.

Senator Etchart asked if this would complete the interstate.

Gary Wicks said no, it does not complete the interstate. But, it would complete the major gaps, the ones we think are most crucial to complete. He had the committee refer to the maps in Exhibt 2.

In closing, Senator Jacobson told the committee she feels the Department of Highways has come up with a realistic proposal. The benefits of this are great and outweigh any other proposals. We have had many proposals this session, but this one would both create jobs and immediate payroll and make the state much more accessible, and increase the safety factor of our highways. If we are going to get this state moving again, lets get our highways built and take care of them.

There being no further discussion, hearing on Senate Bill No. 454 was closed.


ACTION ON SENATE BILL NO. 454: Senator Shaw made the motion to adopt the amendments proposed by Senator Jacobson and Gary Wicks. The motion carried.

Senator Shaw made the motion that Senate Bill No. 454 as amended, DO PASS. The motion carried unanimously.

ADJOURN: There being no further business before the Committee, the meeting was adjourned at 1:15 p.m.

Senator Mark Etchart, Chairman

ME/cdf

ROLL CALL

SENATE HIGHWAYS AND TRANSPORTATION COMMITTEE

48 ~~th LEGISLATIVE SESSION -- x~iix 1983 ~/rJjh

Date ----- - - - - - - ~ - -

NAME PRESENT ABSENT EXCUSED

Senator Mark Etchart, Chairman V

Senator Hager, Vice Chairman jafo ~

Senator Elliott / Senator Shaw V

Senator Tveit r/fo6 ~

Senator Graham v'

Senator D. Manning /

Senator Stimatz V'/ -

Senator Daniels ,/

Paul Verdon, Leg. Council ./ -

Carol Doyle Frasier, Secretary / -

(

SENATE

BILL~ !/Sf

NAME

,-

~ COMMITTEE

DATE o1/rj/n VISITORS' REGISTER

REPRESENTING

~ , Please note bill no.

(check one)-BILL # SUPPORT OPPOSE

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PLEASE LEAVE l-REPARED STATEMENT WITH SECRETARY

<::Y(/'7/0:/

funendments to S.B. 454

1. Page 3, line 1 Following: receipts Strike: "and"

2. Page 3, line 2 Following: "fund" Strike: ""

,

Insert: "and the highway trust Federal and private revenue account. "

3. Page 3, lines 19 and 20 Followins: "the" Strike: "bond proceeds and insurance clearance fund" Insert: "highway earmarked revenue fund"

;f 4. Page 4 Following: line 4

Insert: "( 3) Interest and investment earnings on the sep~rate accounts named in subparagraphs (1) and (2) shall be retained in the highway earmarked revenue fund.

(4) Notwithstanding 17-6-202 and except as provided in subparagraph (3) interest and investment earnings on the hishway earmarked rev"enue fund shall be credi ted to the ~eneral fund until July 1, 1985 and thereafter shall be retained in the highway earmarked revenue fund."

5. Page 9, line 4 Following: "time." Insert: "No additional bonds, other than refunding bonds, n~y be issued until the pledge in favor of the highway revenue bonds is satisfied and discharged."

SH:mb:239/K

f ~ ~ '"'

09/01/83 l

Issuance of: S144.9 M

ill ion S

tate H

ighway

Revenue

80nds

Bond Issue

for ACI P

rojects &

Other S

tate Highw

ay P

rojects

09/01/86 06/01/87

09/01/90 I

I _

__

~ __ ~

Com

pletion of

All

Other S

tate H

ighway P

rojects

I ---

Com

pletion of

All

ACI P

rojects M

aturi ty of

All

State H

ighway

Revenue

Bonds

Com

ponents of the Bond

Issue Flow

of Funds

't\

~ "-~ t-....

~\j'

~~ ~

;H/cp/208S3

(inm

iTT

Ion

$l

Construction Funds:

Financing C

osts: D

ebt Servo

Reserve

Fund: C

apitalized In

terest:

Total

:ssue Date:

Final

t·laturity D

ate: N

et In

terest Cost:

S120.0 3.2

21.7 -0

-

$144.9

9-1

-83

9-1-90

7.06':.

t

'"

[fiiImT

Tlonsl

Total

Debt

Service:

Less:

Departm

ent C

onstruction Funds: Investm

ent Earnings:

DSRF P

rincir;al: ACI

Reim

bursements:

Total

Cost

to S

tate:

S199.0

70.0 48.0 21.7 58.8

S 0.5

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ro

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ONLY AFFECTS FEDERAL FUND ING

$100.3 MILLION IN FEDERAL APPORTIONMENTS

INTERSTATE NEED

ACCELERATE $58.8 MILLION INTO 1984

NOT A REPLACEMENT FOR PROPOSED REVENUE INCREASE~

t~ANY BENEF I TS

FINANCING STRUCTURE

MONTANA DEPARTMENT OF HIGHWAYS

BOND FINANCING PROPOSAL

The Montana Department of Highways has a $200 million budget with many revenue sources and expense accounts.

Presently, the State's annual federal funding includes about $17.7 million for Interstate construction and an additional $82.6 million for all other federal programs.

Only eight states have a larger percentage than Montana of their interstate system still unfinished.

This plan is designed to accelerate the construction of Interstate Projects totaling $58.8 million dollars origlnally SCheduled tor tlscal years 1986 through 1988 so the work can begin in fiscal years 1984 and 1985.

An important question is how the new federal user fees and the new proposed state revenues on fuel and other sources may affect this proposal. Federal Interstate construction funding for Montana froM the federal revenue increases in 1983 will be minimal for the next sever~1. years. In addition, enactment of any other Department of Highways revenue proposals presently before the Legislature would not affect this financing; those revenue measures remain necessary to pay for current level programs and the reconstruction trust program.

Among the many reasons to undertake this financing program are (1) to obtain the use of some important Interstate highways earlier, (2) to qive the state's economy a maJor boost almost immediately, and (3) to save approximately $15.3 million in inflation costs.

The proposed financing structure would have the Department of Highways issue $145 million in Revenue Bonds which would be secured by High\'/ay program revenues. The net cost to the State of the proposed structure would be $0.5 million, based on conservative assumptions regarding interest rates, current IRS regulations, the Department's construction program, and revenue receipts. The actual cost could vary depending upon the final financial structure used and the legal requirements which are prevalent at the time the bonds are issued. The financing would include moneys for both the $58.8 million of Advanced Construction-Interstate (ACI) projects as well as other Department projects in

-1-

CASH FLOW MANAGEMENT HELPS REPAY NOTES AND/OR BONDS

FEDERAL GOVERNMENT ACI FULLY OBLIGATED

COSTS TO STATE

BENEFITS TO STATE

790 NEW JOBS

$20 MILLION PAYROLL

ECONOMIC BENEFITS

FAVORABLE BIDDING CLIMATE NOW

order to allow the Department to better manage its cash flow and therehy generate investment earnings which would aid in the repayment of the bonds. All costs of the program will be locked in at the time the bonds are sold (by September 1983), vlrtually ellminatlng the risk of any unforeseen costs (see cash flow and timetable attached).

Under this financing plan, the State of Montana can borrow money through bonds at a rate lower than the return it can reallze on investments. With effective cash flow management funds will be generated through investment earnings to help repay the bonds.

Once the federal government has approved the projects, it is contractually obligated to make rei~bursement for them, removing the obligation from the State, even if federal Interstate funding laws change. TheSe reimbursements can also be used to help repay the bonds.

The cost to the State of this borrowing will depend upon the financing structure as well as the borrowing costs and the investment rates available for borrowed funds. Conservative assumptions regarding market conditions and reinvestment rates have resulted in the estimated net cost of $0.5 million. Not included in these assumptions 1S any allowance for additional reimbursement by the Federal Highway Administration for the State's interest costs, or for more favorable investment earnings that would result if ACI reimbursements are made in a lump sum instead of the anticipated 36-month reimbursement period.

The State will realize the following benefits:

1. An estimated 790 new jobs now - when and where they are needed most.

2. A direct payroll from the accelerated program of more than $20 million plus the "mUltiplier effect. II

3. r~uch earlier use of five key sections of Montana Interstate with an economic value of many millions of dollars.

4. A presently-favorable construction bidding climate, which will enable Montana to construct more interstate with the same dollars than under ordinary financing.

-2-

SAVES INFLATION COSTS

FLEXIBILITY

PROPOSED ACI PROJECTS

SH:nr:mb:239/G

5. A savings of $15.3 million in inflatio~ costs.

The proposed bill (SR 454) provides flexibility for the Department in selecting the best financing structure available at the time of issue. The Department will review market conditions at that time in order to insure that the alternative with the lowest risk/costs is selected. Based upon current market conditions, the structure proposed here creates the highest value for virtually no risk. Also, authorizing a financing program now will allow flexibility in obtaining the lowest cost financing and the most effective cash flow management and thus the lowest net cost to Montana.

Cost Letting Project Route (in millions) Date (FY)

Bernice-Basin I-IS $17.5 1984 E1 k Park-North 1-15 7.9 1984 Berni ce-South I-IS 10.8 1984 Springdale-West 1-90 7.8 1985 Lodge Grass-South 1-90 14.7 1985

TOTAL . $58.7

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-----,--

In Co

ters tate

In Re

Pr

Se

Ur

Ot

Oh Au

ns truct i on

terstate surfacing

imary

----

conda ry

ban

idqe placement

- ------- -----

her

- -----------_.-

TOTALS

---

ligation tho ri ty

1982 {Actual}

14,887

12,127

17,466

7,204

3,842

3,245

5,337

64,108

66,100

FEDERAL APPORTIONr1ENTS (Federal Fiscal Years) (l,OOO's of dollars)

1983 1983 1984 1985 (Pri or to (Based on New Federal Law)

new Federal Law)

15,848 17,732 17,732 17 ,732

12,336 29,815 36,696 42,811

19,098 21,007 23,581 25,827

9,006 11,742 11,742 11,742

3,362 - . 3,841 3,841 3,841

5,223 9,990 10,483 11 ,208

2,064 5,076 5,235 5,373

66,937 99,203 109,310 118,534

66,000 100,30~ 104,800 114,500

( 1986

17,732

48,163

27,512

11,742

3,841

13,383

5,514

127,887

124,300

1 New Federal Law provides obligation authority in excess of apportioned funds.

SH:nr:210/H

"-

Hig

hway

Fu

nd

Cas

h Fl

ow

Ana

lysi

s C

urre

nt L

evel

Adjust~d

for

New

Fed

eral

R

even

ues

(OO

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of $

)

FY

1983

FY

19

84

FY

1985

FY

19

86

FY

1987

~

~

Beg

inni

ng C

ash

Bal

ance

37

,058

29

,293

11

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(1

1,70

8 )

(28,

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-u,

Rev

enue

s C

urre

nt L

evel

l 80

,907

73

,156

75

,200

78

,304

83

,238

Ava

ilab

le F

unds

11

7,96

5 10

2,44

9 86

,273

66

,596

55

,208

f E

xpen

di t

ure

s {

Cur

rent

Lev

e12

88,6

72

91,3

7.6

2 93

,956

98

,651

10

3,67

6 M

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Lev

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s 88

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91

,376

93

,956

98

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10

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76

~

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ance

29

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11

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(7

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) (3

2,05

5)

(48,

468)

Not

es:

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tax

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/30/

83.

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even

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& A

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S

tate

Rev

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1983

FY

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84

FY

1985

FY

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Beg

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37

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29

,293

21

,873

13

,918

Rev

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s C

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evel

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78

,291

80

,335

83

,439

Ava

il ab

le F

unds

11

7,96

5 10

7,58

4 10

2,20

8 97

,357

Expe

ndi t

ures

C

urre

nt L

eve1

2 88

,672

85

,711

88

,290

92

,699

M

odifi

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Lev

el

Rec

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ruct

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Tru

st

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Tot

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s 88

,672

85

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88

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92

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Endi

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29

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Not

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SH:m

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FY

1987

4,65

8

88,3

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93,0

31

97,3

61

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Exp

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FY

1983

FY

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FY

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37,0

58

29,2

73

24,4

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80,9

07

78,2

91

nO,3

35

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12,8

35

12,8

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-0-

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--0

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-

117,

965

120,

399

122,

787

88,6

72

85,6

36

88,2

15

-0-

1,45

7 1,

228

-0-

8,82

3 10

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-0

--0

--0

-

88,6

72

95,9

16

100

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29,2

93

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83

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SH:m

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FY

1986

FY

19

87

~

---

22,7

32

10,6

24

...... ~

83,4

39

88,3

73

12,8

35

13,1

39

10,2

68

10,5

12

~

9,0

00

19

,000

~

~

138,

274

141,

648

~

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92,6

24

97,2

86

t 1,

230

1,29

9 33

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33

,796

-0

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-~

127,

050

132,

381

10,6

24

9,26

7

........

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3

Coal Tax Revenues Taken From All Earmarked Accounts

FY 1986 FY 19B7 FY 1985 urrent urrent -ro. roo

General Fund 23,383 27,~41 24,521 30,734 23,'114 Public School Equal. 6,154 7,353 6,453 8,088 fi,188 Co. Land Planning 615 735 645 809 619 Local Impact 10,769 12,868 11,293 14,154 10,829 Conservation Di st. 308 368 323 404 3()9 State Library 615 735 645 80Q 619 Alternative Energy 2,769 3,309 2,904 3,640 2,785 Renewable Resources 769 919 807 1,011 773 Water Development 769 919 807 1,011 773 Parks & Cultural 3,077 3,677 3,226 4,044 3,094 Education Trust 12,307 14,706 12,906 16,176 12,376 Pennanent Trust 61,535 73,530 73,530 80,880 80,880 Highway Program -0- -0- 9,000 -0- 19,000

Total , 0 1,

* Funding for the Highway Program would amount to 12 percent of the Non-Trust revenues in FY 1986 and 23 percent in FY 1987.

Schedule 4

SH:mb:228/Q4

Fuel Tax

Summary of Revenue Proposals

Make permanent I-cent increment

3-cent increase effective July 1, 1983, with 1/2-cent to go to local governments

2-cent increase effective January 1, 1985

Hi ghway Patrol

Coal Tax

Fund with General Fund revenues effective July 1, 1983

Earmark $9 million (12 l1ercent) from non-Trust portion, for Fiscal Year 1986

Earmark $19 million (24 percent) from non-Trust portion for Fiscal Year 1987

Earmark a constant 24 percent per year for future years

Gross Vehicle Weight Fees

No increase -- leave at current level

SH:mb:228/Q5

Ihgt & ~U{)or

NAME: -I-a~~~PJ~I-_-j;_cJ-_t/ d._d-<_" -<--1 ____ DATE:_L--r-=-/;--L.Z~/<f-3-ADDRESS: __ ~;g<~~~--4~~~~d _____________________________ __ PIIONE: ____________________________ _

REPRESENTING WHOM? ;!//tJlt~cJ f'I1D mv ~Vl~ /fSS/Cj

APPEARING ON 'i'lHICH PROPOSAL: 58 t.fS-V --------------------DO YOU: SUPPORT? AMEND? OPPOSE? ------ ------

COMMENTS:

PLEASE LEAVE ANY PREPARED STATEMENTS WITH THE COMMITTEE SECRETARY

----------- Box 1176, Helena, Montana -----------JAMES W. MURRY

EXECUTIVE SECRETARY ZIP CODE 59624

406/442·1708

TESTIMONY OF JIM MURRY, ON SENATE BILL 454, HEARINGS OF THE SENATE HIGHWAYS AND TRANSPORTATION COMMITTEE, FEBRUARY 19, 1983 ----------------------------------------------------------------------------------

I am Jim Murry, with the Montana State AFL-CIO. We support Senate

Bill 454.

This is a complex bill involving some financial transactions that I

don't pretend to understand. No doubt experts from the Highway Department will be

able to answer all of your questions about the specifics of how the money is to be

raised and spent.

I am here to support the concept of completing the interstate system

ahead of schedule. This is a good idea, for the workers who will get the highway

jobs, and for the entire economy of the state.

Businesses benefit in two ways, from having better transportation

available, and from having highway workers with paychecks to spend in their stores.

According to the Highway Department, much of the work to be done is on I-IS near

Butte, which currently has an unemployment rate of 11.6%. These jobs will help

workers and businesses.

Improving and maintaining the infrastructure is an important function of

government, one that is entirely beyond the capacity of the private sector.

Infrastructure is an important component of a valid economic development plan,

especially in Montana which already has a severe transportation problem due to

our distance from major markets.

PRINTED ON UNION MADE PAPER

Testimony of Jim Murry Senate Bill 454 February 19, 1983

This bill basically borrows money against future income. That seems

to be an appropriate course of action during the present recession. When times

improve, the funding crunch should not be as great as it is at present.

We ask that you give Senate Bill 454 a "do pass" recommendation.

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TESTIMONY OF JIM MAYES ON SENATE BILL 454, BEFORE THE SENATE HIGHWAYS COMMITTEE, FEBRUARY 19, 1983

I am Jim Mayes, with the state's largest local union, Operating

Engineers, Local 400.

Senate Bill 454 is a jobs bill of the best kind. It creates jobs in

occupations and in geographical areas which need it. Our union is currently

experiencing about 45% unemployment. That is up from a normal 22% unemployment

at this time of the year, due to the seasonal nature of our work. This bill

will put some of our members back to work, along with other types of workers.

The bill creates jobs which are not make-work jobs, but which provide

an invaluable public service. The economy needs good roads, and the government

is the only one who can build and repair those roads.

Not only does this bill create jobs, but it does so without putting even

a small dent in the present state budget. It issues bonds against future

income, so in effect this simply does the work now based on future income

which was going to be raised and spent anyway. If the national trends are

reversed, and the federal government starts putting more emphasis on highways

again, we will have the benefit of jobs now when we need them and also later.

We support Senate Bill 454. Thank you.

(Union bug removed for copying purposes)

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ADDRESS: H4'(~" q H'f. -~~~~~,--~~--------.------------------------------

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APPEARING ON WHICH PROPOSAL: #8 £15 GI --~~~~~~-----------------

DO YOU: SUPPORT? ------ AMEND? ------ OPPOSE? ----

COMMENTS: 6,-/1 6-.IJ",.sr-r

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PLEASE LEAVE ANY PREPARED STATEMENTS WITH THE COMMITTEE SECRETARY.

______ DATE: (:) - \ 9 ~ 83

REPRESENTING WHOM? I?ZL ~Q06/;1/G As.<;/V.

AP PEARl NG ON WH I CH PROPOSAL: __ ..;:>s~d",-,· '"-. _L/~5----,'f_' ______ _

DO YOU:

COMMENTS:

SUPPORT? AMEND? V OPPOSE? ----- ---- ---

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TESTIMONY OF EUGENE FENDERSON SUPPORTING SENATE BILL 454 BEFORE THE SENATE HIGHWAYS AND TRANSPORTATION COMMITTEE FEBRUARY 19, 1983

P. O. BOX 702 110 N. WARREN

HELENA. MT 59624 (406) 442-1441

My name is Gene Fenderson, business manager of Laborers #254, Helena.

I am here to support Senate Bill 454, which is part of the Governor's highway

package.

As I understand this bill, its basic purpose is to speed up completion

of the interstate system. That is done by issuing highway revenue bonds, which

are backed up by future revenue from state gross vehicle weight fees and excise and

license taxes, and also by future federal highway revenue coming into this state.

I can't speak to all the mechanics of how bonds are put out, and whether

this bill addresses that process in the best way. But we do support the concept

of speeding up completion of the interstate system. There are several benefits

to this. First, it provides a better highway system, on which much of our

commerce depends. Better highways also helps the tourism industry.

Second, it provides good jobs. These are jobs which pay good money, and

therefore have more beneficial impact on the local economy in the places where

the workers live. When Montana workers are hired, all of that money circulates and

recirculates through the hands of the local merchants, so that even more employment

is created.

Third, much of the work will be in the Butte area. Instead of waiting for

this work to occur in the future, it helps now in an area of the state which has

been devastated by tre ARCO closure.

I urge you to vote for SB 454.

(Union label removed for duplication)

HIGHWAYS AND TRANSPORTATION

Date_~~-/-/~/q __ I

Bill NO~ J.f.51---------1983 Time ----a~

NAME

Senator Etchart, Chairman ~

Senator Haqer, Vice Chairman V'

Senator Elliott

Senator Shaw V

Senator Tveit r,/

Senator Graham

Senator D. Manning / Senat<i)r Stimatz /

Senator Daniels V

I

Carol Doyle Frasier ")" , / "Z' / /' -' t/fA fV'Z4~ {/IC:.~

Senator Mark Etchart Secretary Chainnan

M:>tion! 9uzar a.d¥ am&v!~. ~W· ~-

(include enough infoz:mation on notion-put with yellow copy of ccmnittee report.)

HIGHWAYS AND TRANSPORTATION

1983 Bill No. SB tJ5'-{ Titre Date __ ...;;..d..+/.;......Jlq,--_ ---------..; ----Clo~

NAME YES

Senator Etchart L Chairman /'

Senator Haqer, Vice Chairman ~ -Senator Elliott

Senator Shaw / Senator Tveit V

-Senator Graham -Senator D. Manning V Senat<!)r Stimatz V Senator Daniels t/

Carol Doyle Frasier Senator Mark Etchart

. "1 S.tt1..l· ~ha.W ln1o.J.t. t/u..-~ i:b.o..,t S {J; !IS'I 120 OmtU7U 00 PIf~S. 71U ~.

(include enough infomlation on rrotion-put with yellow copy of cx:mnittee report.)

~L.

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... ~!.~~;Y .. .!? .................................. 19.Jt~ ... .

MR ...•... ~~~gP.;rt;~1~ ............................ .

We, your committee on .............. ~.1;g,ij"-~1.$. ... ~.Q ... ~~S.~O.RTA'lION .............................................................. .

having had under consideration ............................................. SENAT..E. .................................................... Bill No.45A ........ .

Respectfully report as follows: That .•.••••••••••••.••..•••••.•.•.•..•.• .s.BNAm ...................................................... Bill No ... 4S4. ...... . introduced bill, be amended as follows:

1. Page 3, line 1. Following: "receipts· Strike: "are"

2. Page 3, line 2. Following' • fund" Insert: "and the highway trust Federal and private revenue account"

3. Page 3, lines 19 aDd 20. Following: "the" Strike: "bond proceeds and insurance clearance fund" Insert: "highway earmarked revenue fund"

CONTINUED ON PAGE 2

JIXXl(B

STATE PUB. CO. ...................................................... ·····················ch~i~·~~~:·:·······

Helena, Mont.

vtJ'~

February 19 83 Senate Commit.ee on Highways and 'l'ransPO·rea€ioii···················· .. ··········· .. ···· .. ·· 19 ........... .

. Page 2 Senate Bill No. 454

4. Page 4. Following: line 4 Insert: -(3) Interest and investment earnings on the separate

accounts named in subparagraphs (1) and (2) shall be retained in the hiqbway earmarked revenue fund.

(4) Notwithstanding 17-6-202 and except as provided in subparagraph (3) interest and investment earnings on the highway earmarked revenue fund shall be credited to the general fund until July 1, 1985 and thereafter shall be retained in the highway earmarked revenue fund.-

s. Page 9, line 4. Following: -time.-Insert: -Ho additional bonds, other than refunding bondsr

may be issued until the pledge in favor of the highway revenue bonds ia satisfied and discharged.-

And, as 80 amended, DO PASS

STATE PUB. CO, Helena, Mont.

··SENATOR··MAH··ETCHART·················Ch~i~~~~:·········

AI f:'

minutes of the meeting highways and transportation...

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