Legislature(1999 - 2000)
2000-01-27 Senate Journal
Full Journal pdf2000-01-27 Senate Journal Page 2093 SB 228 SENATE BILL NO. 228 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: An Act relating to the financing of construction and major maintenance of public school facilities; authorizing the commissioner of revenue to sell the right to receive a portion of the anticipated revenue from a certain tobacco litigation settlement to the Alaska Housing Finance Corporation; authorizing the issuance of bonds by the Alaska Housing Finance Corporation with proceeds to finance public school construction and major maintenance grants; providing for the creation of subsidiary corporations of the Alaska Housing Finance Corporation for the purpose of financing or facilitating the financing of 2000-01-27 Senate Journal Page 2094 SB 228 public school construction and major maintenance grants; relating to the annual public school construction and major maintenance grant application and approval process; providing for allocation of additional reimbursement of public school construction debt; and providing for an effective date. was read the first time and referred to the Health, Education and Social Services, State Affairs and Finance Committees. Fiscal notes published today from Department of Revenue, Department of Education and Early Development. Governors transmittal letter dated January 26: Dear President Pearce: Part of my Quality Schools Initiative is the provision of adequate, safe and well-maintained schools in which our children can learn. Unfortunately, with declining general fund capital budgets, the backlog of needed school construction and major maintenance projects across our state has continued to grow. Today I am introducing a $510 million package that will address all of the statewide deferred maintenance list and two-thirds of the current statewide prioritized list of construction projects. In addition, the bill extends the 70 percent school debt reimbursement program for those districts that bond directly for projects. The revenues for the state portion of the bond proposal rely largely on Alaska's share of national tobacco settlement funds. The settlement proceeds would serve as security for bonds issued by a subsidiary of the Alaska Housing Finance Corporation (AHFC). Additional proceeds would be raised from bonds issued directly by AHFC. This method for raising school construction money preserves the state's debt capacity. 2000-01-27 Senate Journal Page 2095 SB 228 The program will provide $360 million for all 86 major maintenance projects and 40 of 69 new school construction projects on the current Department of Education and Early Development priority list. The current priority list will remain in effect over the next three years to allow these critical projects to be funded. To address funding for school districts with the capacity to bond, my proposal includes $150 million in authorization for a 70% school debt retirement program. This authorization will provide $60 million for the states largest school district and $90 million for other municipal districts. We know we have needs beyond what is included in this package. However, this proposal will address a significant portion of our existing need, address issues raised in the Kasayulie case, and provide adequate space and safe learning environments for Alaskas children. I urge your prompt and favorable action. Sincerely, /s/ Tony Knowles Governor