03/24/2014 08:00 AM Senate EDUCATION

              SB 208-SCHOOL CONSTRUCTION BOND DEBT                                                                          
                                                                                                                                
8:14:48 AM                                                                                                                    
CHAIR STEVENS announced the consideration of SB 208.                                                                            
                                                                                                                                
DAVID   SCOTT,   Staff,   Senator  Donny   Olson,   Alaska   State                                                              
Legislature,  Juneau,   Alaska,  presented  changes   in  SB  208,                                                              
version  N. He noted  one change  on page  7, lines  1 and  2, the                                                              
words  "are less than  or equal  to the  20 percent  participating                                                              
share" were  revised. The  intent of  the bill  is to catch  those                                                              
districts whose participating share is 20 percent or less.                                                                      
                                                                                                                                
CHAIR STEVENS asked Mr. Scott to summarize the bill.                                                                            
                                                                                                                                
8:16:18 AM                                                                                                                    
SENATOR DUNLEAVY  moved to  adopt the CS  for SB 208,  labeled 28-                                                              
LS1527\N, as the working document.                                                                                              
                                                                                                                                
CHAIR STEVENS objected for discussion.                                                                                          
                                                                                                                                
8:16:49 AM                                                                                                                    
MR. SCOTT explained  that the bill is designed  to encourage small                                                              
and rural districts  to address facility improvements  via issuing                                                              
debt,  rather than  through the  state  school construction  grant                                                              
program.  He  said there  are  two  mechanisms  for the  state  to                                                              
provide  for capital  projects for  education  facilities. One  is                                                              
bond  debt  reimbursement  program,  which is  typically  a  70/30                                                              
split where  the municipality pays  30 percent and the  state pays                                                              
70  percent.  There  is  also  a   60/40  split  which  has  space                                                              
requirements.   The  second  is   the  school   construction/major                                                              
maintenance grant program.                                                                                                      
                                                                                                                                
He  related the  bill takes  a data  point of  reference from  the                                                              
school construction  and  major maintenance  program, which  is 20                                                              
percent  or lower,  and uses  it  in the  bond debt  reimbursement                                                              
program.  If   eligible  for  the   participant  share,   in  debt                                                              
reimbursement it  would be 20/80.  He pointed out  precedence page                                                              
5,  line 30.  The  participating  share  requirement there  is  10                                                              
percent. From 2005.                                                                                                             
                                                                                                                                
He said  that some schools  have been on  the grant list  for some                                                              
time. Not  every district has the  ability to bond, but  those who                                                              
can, can be reimbursed at a lower rate.                                                                                         
                                                                                                                                
8:20:40 AM                                                                                                                    
ELIZABETH  NUDELMAN,  Director,  School  Finance  and  Facilities,                                                              
Department  of Education  and  Early Development  (DEED),  Juneau,                                                              
Alaska, answered questions related to SB 208.                                                                                   
                                                                                                                                
SENATOR STEDMAN  asked if the  department supports the  program or                                                              
has any concerns.                                                                                                               
                                                                                                                                
MS. NUDELMAN  said the  department does  support the programs  and                                                              
will continue to move them forward.                                                                                             
                                                                                                                                
8:22:20 AM                                                                                                                    
SENATOR  DONNY OLSON,  Alaska State  Legislature, Juneau,  Alaska,                                                              
sponsor of  SB 208.  He said it  is a very  popular bill  and will                                                              
affect many across the state.                                                                                                   
                                                                                                                                
SENATOR HUGGINS  thanked  Senator Olson for  sponsoring the  bill.                                                              
He asked which schools are immediately affected.                                                                                
                                                                                                                                
MR.  SCOTT  said there  is  a  list  in members'  packets  and  it                                                              
includes all  schools eligible for  20 percent and below.  He read                                                              
several schools.  He addressed  the immediate  effects of  Section                                                              
2.                                                                                                                              
                                                                                                                                
SENATOR HUGGINS couldn't find it.                                                                                               
                                                                                                                                
MR. SCOTT commented on Lake and Peninsula.                                                                                      
                                                                                                                                
CHAIR STEVENS thanked.                                                                                                          
                                                                                                                                
TY  MASE,  Superintendent,  Lake and  Peninsula  School  District,                                                              
King  Salmon, Alaska,  answered questions  related to  SB 208.  He                                                              
described  the   issues  surrounding  Port  Alsworth   School.  He                                                              
explained how  the borough  passed a bond  to fund the  repairs on                                                              
the school. SB 208 provides equity for their district.                                                                          
                                                                                                                                
8:27:20 AM                                                                                                                    
CHAIR STEVENS thanked Mr. Mase.                                                                                                 
                                                                                                                                
SENATOR GARDNER                                                                                                                 
                                                                                                                                
MR. MASE                                                                                                                        
                                                                                                                                
SENATOR GARDNER                                                                                                                 
                                                                                                                                
MR. MASE said yes.                                                                                                              
                                                                                                                                
CHAIR STEVENS closed public hearing. [The assumption is that                                                                    
Chair Stevens removed his objection to adopting the CS.]                                                                        
                                                                                                                                
8:29:09 AM                                                                                                                    
SENATOR DUNLEAVY moved to report CSSB 208 (EDC) from committee                                                                  
with individual recommendations and attached fiscal note.                                                                       
                                                                                                                                
SENATOR GARDNER objected to tell a story about the Little Red                                                                   
Hen. She withdrew her objection.                                                                                                
                                                                                                                                
There being no further objection, CSSB 208(EDC) moved from the                                                                  
Senate Education Standing Committee.