1994-02-11                     House Journal                      Page 2348
HB 466                                                                       
HOUSE BILL NO. 466 by the House Rules Committee by request of                  
the Governor, entitled:                                                        
                                                                               
"An Act authorizing the issuance of bonds by the Alaska Housing               
Finance Corporation to pay for the costs of repair and                         
rehabilitation of student housing facilities of the University of              
Alaska; authorizing the issuance of bonds by the University of                 
Alaska to pay for the costs of repair and rehabilitation of facilities         
of the University of Alaska; amending powers of the Alaska                     
Housing Finance Corporation; amending the definition of "public                
building"; relating to the Alaska debt retirement fund; and                    
providing for an effective date."                                              
                                                                               
was read the first time and referred to the Health, Education & Social         
Services and Finance Committees.                                               
                                                                               
The following fiscal notes apply:                                              
                                                                               
Zero fiscal note, Office of the Governor, 2/11/94                              
Zero fiscal note, Dept. of Revenue, 2/11/94                                    

1994-02-11                     House Journal                      Page 2349
HB 466                                                                       
The Governor's transmittal letter, dated February 11, 1994, appears            
below:                                                                         
                                                                               
                                                                               
"Dear Speaker Barnes:                                                          
                                                                               
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am     
transmitting a bill authorizing the issuance of Alaska Housing Finance         
Corporation and University of Alaska bonds for repair and                      
rehabilitation of university facilities.                                       
                                                                               
                                                                               
This legislation will provide funding to partially meet the university         
facilities' deferred maintenance needs throughout the state.  The              
Legislature's approval of my bill last session creating the educational        
facilities maintenance and construction fund was a start in stepping up        
to our responsibilities in investing in the state's existing infrastructure.   
But it was only a start.  We now have the responsibility to continue to        
meet the university's critical needs.                                          
                                                                               
The bill I am proposing authorizes the Alaska Housing Finance                  
Corporation to issue $30 million in bonds for student housing repair           
and rehabilitation, and authorizes the University of Alaska to issue $45       
million in bonds for repair and rehabilitation of other university             
facilities.  This program will allow the buildings to be repaired now,         
with costs of the upgrades spread over the remaining useful life of the        
facilities.  Repayment of the debt service will be made from annual            
legislative appropriations from the Alaska debt retirement fund (AS            
37.05.011).  The historic low interest rates currently prevailing in the       
national capital markets, combined with reduced future maintenance             
and operating costs brought about by fixing the university facilities,         
makes this approach particularly appropriate this year.                        
                                                                               
                                                                               
I urge your early and favorable consideration of this legislation.             
                                                                               
										Sincerely,                                                           
										/s/                                                                  
										Walter J. Hickel                                                     
										Governor"