2000-02-16                     House Journal                      Page 2207
HB 373                                                                       
HOUSE BILL NO. 373 by the House Rules Committee by request of                  
the Governor, entitled:                                                        
                                                                               
"An Act relating to return of contributed capital, or payment of a            
dividend, to the state by the Alaska Student Loan Corporation; 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 note applies:                                             
                                                                               
Zero fiscal note, Dept. of Education & Early Development, 2/16/00              
                                                                               
The Governor's transmittal letter dated February 10, 2000, appears             
below:                                                                         

2000-02-16                     House Journal                      Page 2208
HB 373                                                                       
"Dear Speaker Porter:                                                          
                                                                               
Since 1995, the Alaska Student Loan Corporation has transformed the            
loan program from an operation posting a $7 million annual loss to             
one with a $6.3 million net income.  The exceptional success of the            
corporation means it is now able to pay dividends back to the state as         
a return of the capital contributed in 1987 when the corporation was           
created.                                                                       
                                                                               
This bill I transmit today provides for the corporation to issue annual        
payments to the state in years when the corporate net income is at least       
$2 million.  The payment would be between 10 and 35 percent of the             
net income, subject to provisions of applicable bond indentures of the         
corporation.                                                                   
                                                                               
A fitting use for the dividend income would be to fund the Alaska              
Scholars Program.  This scholarship program at the University of               
Alaska rewards the top high school students in our state and offers            
them an opportunity to continue their higher education.  The program           
is estimated to reach a cost of about $3.6 million and will need general       
fund support by fiscal year 2002.                                              
                                                                               
Alaska students have reaped great benefits from the state's student loan       
program.  Now that the program can repay some of that investment to            
the state, we should continue to invest it right back into the education       
of our young adults.  I urge your prompt and favorable action on this          
measure to receive payments from the Alaska Student Loan                       
Corporation and the intent to use these receipts to fund the Alaska            
Scholars Program.                                                              
                                                                               
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor"