Legislature(2009 - 2010)HOUSE FINANCE 519
04/11/2010 12:30 PM House FINANCE
Audio | Topic |
---|---|
Start | |
HB296 | |
HB416 | |
HB421 | |
SB199 | |
HB424 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
+ | HB 296 | TELECONFERENCED | |
+ | HB 416 | TELECONFERENCED | |
*+ | HB 421 | TELECONFERENCED | |
+= | HB 424 | TELECONFERENCED | |
+ | SB 199 | TELECONFERENCED | |
+ | TELECONFERENCED |
HOUSE BILL NO. 424 "An Act providing for and relating to the issuance of general obligation bonds in a principal amount of not more than $1,000,000 for the purpose of paying the cost of education projects for public schools and the University of Alaska; and providing for an effective date." 6:26:02 PM Co-Chair Hawker MOVED to ADOPT CS HB 424(FIN) Work Draft 26-LS1649\P as a working document before the committee. Co-Chair Stoltze OBJECTED for discussion. JAMES ARMSTRONG, STAFF, REPRESENTATIVE BILL STOLTZE, explained the CS. He stated that HB 424 is a request for a $384.2 million general fund bond authority and if adopted would be sent to voters for the November 2010 general election. Mr. Armstrong presented a brief summary of the legislation by section: · Section 1, specifies the amount of the bond. · Section 2, contains the education project fund. He added that is the standard language for bond bills. · Section 3, relates to the Mount Edgecombe High School aquatic facility in Sitka and the State Library Archives and Museum facility in Juneau that will be bonded in the amount of $20 million for each project ($40 million total). · Section 4, identifies three school replacements and renovations in western Alaska for a total of $128.5 million. Co Chair Stoltze interjected that these three schools are referred to as the Kasayulie Schools in reference to the lawsuit and eventual judgment that lead to changes in rural school funding. Mr. Armstrong continued the sectional presentation with: · Section 5 identifies the University of Alaska's Valley Center for Art and Learning on the Matanuska Susitna (Mat-Su) Campus, the Community Arena and Athletic Center in Anchorage, the Life Science Classroom in Fairbanks, two projects for the Kenai Campus's student housing and Career and Technical Education Center and the Prince William Sound Community College campus renovation and renewal. Total $161.8 million. · Section 6 identifies the Department of Fish and Game's Near Island Research facility {$20 million) in Kodiak. · Section 7 names the Department of Commerce, Community and Economic Development grants for a total of $33.9 million. He noted the list of projects begin on page 4, of the legislation. The first seven projects are for library construction in Anchorage, Cordova, Kenai, Mat-Su, North Slope, Petersburg, and Seward. The eighth and ninth projects are located on Prince of Wales Island for a vocational education center in Klawock and the Northwest Magnate School and Kotzebue High School in the Northwest Arctic Borough. · Section 8 appropriates the cost of issuing the bond per the Department of Revenue; total $4,610.400. 6:30:14 PM Mr. Armstrong noted that the bonds were eligible under the Build America Bond Act as part of the federal stimulus program (ARRA); the bonds would need to be sold before December 31, 2010. Upon voter approval the federal government will pay thirty five percent of the interest over the twenty year life of the bond. JERRY BURNETT, DEPUTY COMMISSIONER, DIVISION OF TREASURY, DEPARTMENT OF REVENUE, clarified that the program was extended through December 2011. Representative Doogan asked if the identified projects were pieces of projects rather than whole projects. Mr. Armstrong replied that only two University of Alaska projects (projects two and three) were funded in portions, their balance will be included in the capital budget as general funds. In the event the bonds are not adopted by voters the two projects would move forward with previously appropriated cash on hand; $25 million for an arena on the Anchorage Campus and $38 million for a life sciences center for the Fairbanks campus. Co-Chair Stoltze interjected that $20 million of the existing funds are comprised of University revenue bonds. 6:34:07 PM Co-Chair Hawker announced that not all of the bond projects in HB 424 are for entirely new facilities. Many of the projects such as the Northwest Magnet School and library projects are for renovations, improvements, etc. He cautioned against creating public misperceptions. Mr. Armstrong mentioned that the library projects on page 4 were currently included in the Senate's version of the capitol budget and if approved as part of the bond package, it was the intent of the chair to remove them in the House version. Representative Doogan asked for more information about the Near Island Research Facility listed in Section 6. Representative Austerman explained that it will be located in Kodiak next to the National Oceanic and Atmospheric Association (NOAA) and the University's Fishery and Technology Center buildings. The facility will house Department of Fish and Game offices, research, and educational facilities. 6:38:14 PM Representative Gara cited the university projects on page 3, line 8, and asked what the regent priorities were. Co- Chair Stoltze stated that projects number 2 (Community arena and athletic center) and 3 (Life Science Classroom and laboratory building) were regents priorities. The other projects have been on the regents lists in the past. Mr. Armstrong pointed out that all of the ten previous bond propositions put forward to voters since statehood had been approved. Representative Foster underscored the importance of resolving the Kasayulie case and contended that the three school projects were a positive step. He reported that the Alakanuk School was two hundred and twenty percent over capacity. Co-Chair Hawker relayed that the three school projects in HB 424 were the three top schools by ranking on the school construction list prepared by the Department of Education and Early Development. Mr. Armstrong affirmed. Representative Gara asked if any projects in HB 424 are included in the Senate version of the capital budget bill. 6:41:36 PM Mr. Armstrong listed the seven library projects on page 4, lines 1-12, that are in the Senate version of the capital budget: Loussac Library, Anchorage; Cordova Center and Library Cordova; Community Library expansion Kenai; Sutton Community Library and Resource Center, Matanuska- Susitna ; Tuzzy Library expansion, North Slope; Public Library, Petersburg; Community library ,Seward. Co-Chair Stoltze closed public testimony. Mr. Armstrong cited that the Department of Revenue's fiscal note accompanying the legislation depicts the sum of $29,095,000 in expenditures for the out years FY 2012 through FY 2016. The amount will be decreased in a revised fiscal note to $28,773,000. 6:46:08 PM Representative Doogan asked if the intent was to find complete funding for the two projects that would only be partially funded by the general obligations bonds, before the end of session. Co-Chair Stoltze affirmed. Representative Gara requested to hear from the university regarding the university projects. He wondered if the university was in support of the list. 6:49:34 PM WENDY REDMAN, VICE PRESIDENT, STATEWIDE PROGRAMS, UNIVERSITY OF ALASKA, responded that the university supported the projects. She noted that the Life Sciences facility in Fairbanks was the major priority for the university this year. The other projects were on campus priority lists. Representative Gara inquired about the university's priority for funding for engineering buildings. Ms. Redman replied that the university requested $10 million for planning engineering facilities for the Anchorage and Fairbanks campuses. She reported that the request was not included in the governor's budget. They were considered the most important projects that the university wanted to move forward after the Life Sciences building. The Senate included $5 million in the capital budget for the Anchorage engineering facility and nothing for Fairbanks. Co-Chair Stoltze suspected that all the bond projects were on the regents' list at some point. 6:53:14 PM Representative Gara voiced frustrations with the shortage of university housing in Anchorage. He felt that more housing at the main campuses of Anchorage, Fairbanks, and Juneau would create a vibrant, statewide university system. Ms. Redman reported that the university created a committee to work on housing in collaboration with AHFC to facilitate the project and to expect a plan to come before the legislature in the near future. Representative Fairclough reported that she had two boys at the University of Alaska in Fairbanks, in order to avoid any conflicts of interest. Representative Gara inquired if the $20 million Department of Fish and Game Near Island facility was a state priority. Representative Austerman explained that the project was the top priority on the capital improvement list for the City and Borough of Kodiak. Representative Gara wondered if it was a priority for the Department of Fish and Game. Representative Austerman was not certain. 6:58:51 PM Representative Fairclough spoke in support of the "Build America Bond" projects. She commented that projects had to be chosen that met the requirements of the program. She voiced that she supported the legislation and liked the concept of the thirty five percent interest payback. She believed the package helped the state save money on these projects. Representative Salmon wondered if the bond package amount was going to grow. Co-Chair Stoltze stated that he did not think the amount could grow. He felt that there was a limit to the debt threshold the voters would approve. He stated that the legislature would act responsibly and leverage the available federal money over a fair geographical balance in the state according to the constraints of the bond program. Representative Gara thought that there has been a lot of criticism of the federal government within the state but a readiness to accept federal funds. He pointed out that the bill was an example of something the President has done that was getting people back to work. 7:02:28 PM Co-Chair Hawker MOVED to report CSHB 424(FIN) out of Committee with individual recommendations and the accompanying fiscal note. CSHB 424(FIN) was REPORTED out of Committee with a "do pass" recommendation and with attached new fiscal note by the Department of Revenue.