02/10/1994 09:08 AM Senate CRA

 The Senate Community & Regional Affairs Committee was called to               
 order by Chairman Randy Phillips at 9:08 a.m.  He brought  SB 232             
 (SCHOOL CONSTRUCTION BOND REIMBURSEMENT) before the committee as              
 the first order of business.                                                  
                                                                               
 Number 012                                                                    
                                                                               
 CAROL CARROL, staff to Senator Jay Kerttula, said at the previous             
 hearing on SB 232, the Department of Education spoke of an excess             
 capacity that is built into the system, and Senator Kerttula                  
 requests that the committee consider changing the date on page 1,             
 line 8 to December 1, 1994 so that the excess capacity could be               
 used after this year's elections.  If this were done, it would not            
 be necessary to increase the capacity that the state would have to            
 pay.                                                                          
                                                                               
 Number 060                                                                    
                                                                               
 SENATOR TAYLOR moved the following amendment to SB 232:                       
                                                                               
 AMENDMENT NO. 1                                                             
                                                                               
 Page 1, line 8:  Delete "July 1, 1996" and insert in its                      
                  place "December 1, 1994"                                     
                                                                               
 Hearing no objection, the Chairman stated Amendment No. 1 was                 
 adopted.                                                                      
                                                                               
 Number 082                                                                    
                                                                               
 DUANE GUILEY, Director, School Finance, Department of Education,              
 explained that SB 7, which was passed last session, carried with it           
 a $250 million capital project authorization for the department               
 based upon principal amount of the project.  Of that $250 million             
 that was allocated, $133 million went to Anchorage, $67 million to            
 Fairbanks and $50 million to the remainder of the state.  The                 
 allocation was effective through July 1, 1996.                                
                                                                               
 Currently, there is available capacity of the $250 million                    
 allocation.  Of the $50 million that was allocated to the remainder           
 of the state, there is $14.8 million that has yet to have voter               
 approval.  There is $133 million available in Anchorage.  There is            
 $44.4 million available in Fairbanks.  So of the $250 million, the            
 amount that has actually been voted on and approved by voters to              
 date includes an amount just short of $36 million in the $50                  
 million group, and in the case of Fairbanks, $22 million has been             
 approved of the $67 million.                                                  
                                                                               
 Number 123                                                                    
                                                                               
 SENATOR TAYLOR asked what the cut-off date was for the current                
 program.  DUANE GUILEY answered that under the current program, if            
 the ballot issue fails, the bond reimbursement authorization is               
 immediately voided and the department then goes to the next project           
 on the list.  In the case of Anchorage and Fairbanks, they are                
 currently competing only against themselves until July 1, 1996, but           
 the amendment changes that to December 1, 1994.                               
                                                                               
                                                                               
 Number 155                                                                    
                                                                               
 SENATOR TAYLOR asked if Mr. Guiley agreed that with the adoption of           
 the amendment, the additional $90 million was not needed.  DUANE              
 GUILEY acknowledged that was correct.                                         
                                                                               
 Number 168                                                                    
                                                                               
 SENATOR TAYLOR moved the following amendment to SB 232:                       
                                                                               
 AMENDMENT NO. 2                                                             
                                                                               
 Page 1, line 7:  Delete "$340,000,000" and reinsert "$250,000,000"     "    
                                                                               
 Page 2, lines 1 & 2:  Delete subparagraph (D)                                 
                                                                               
 Hearing no objection, the Chairman stated the amendment was adopted           
 and the two amendments would be incorporated into a C&RA committee            
 substitute.                                                                   
                                                                               
 Number 187                                                                    
                                                                               
 SENATOR RANDY PHILLIPS closed the public hearing on SB 232 and                
 stated that the bill would be rescheduled for another hearing.