Legislature(2009 - 2010)BELTZ 105 (TSBldg)
02/01/2010 08:00 AM Senate EDUCATION
Audio | Topic |
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Start | |
SB237 | |
SB109 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
*+ | SB 237 | TELECONFERENCED | |
= | SB 109 | ||
SB 237-SCHOOL CONSTRUCTION DEBT REIMBURSEMENT CO-CHAIR THOMAS announced consideration of SB 237, sponsored by the Education Committee. 8:06:33 AM CO-CHAIR MEYER stated that SB 237 is a housekeeping measure extending the sunset on the school construction debt reimbursement program for three years, from November 30, 2010 to November 30, 2013. The state of Alaska school bond debt reimbursement is open to any municipality that has the capacity to bond, and is an important partnership between the local communities and the state. It allows the projects on the Department of Education and Early Development's approved list to be reimbursed up to 70 percent. Local governments share in the cost of construction projects which they might not be able to do without state matching funds. He said it is difficult to say for sure how much it is going to cost the state because it depends upon the local municipalities' ability to get school bonds passed, but a spreadsheet in the committee members' packets provides a history of education debt reimbursements from fiscal year 1976 through 2009. In closing, he observed that this has been a very successful program and the sunset has been extended many times. 8:09:06 AM SAM S. KITO III, P.E., Technical Engineer and Architect, Facilities Engineer, Department of Education and Early Development (DEED), Juneau, Alaska, said he administers approval for debt projects under the grant debt reimbursement program. He explained that the program before the committee provides for two levels of reimbursement for school districts that have the ability to issue bonds. The 70-percent reimbursement program is for school districts that are building facilities that fall within the department's space guidelines. If a school district has a project that does not meet the department's space guidelines, it can still bond for the project at a 60 percent reimbursement level. He said the current program was authorized originally under HB 13, extended under HB 373 and has been going on for about six years. Under that program the DEED has authorized a total of approximately $300 million worth of projects at both 70 and 60 percent. MR. KITO said the fiscal note reflects an anticipated increase in the debt service. He provided the members with a graph detailing the legislature's payment on debt service for all of the debt programs that have been in place; the total debt service includes the projects on that graph as well as those authorized under HB 13 and HB 373. 8:11:28 AM SENATOR OLSON asked what might be brought up in opposition to this bill. MR. KITO responded that the debt program is only available to districts that have access to municipal bonding capability. Some districts do not, such as the Regional Education Attendance Areas (REAA) and smaller municipal school districts that don't have a large enough tax base to take advantage of the debt program. SENATOR OLSON asked what provisions are being made for the REAA and smaller districts. MR. KITO said he does not know specifically, but does know that the Department of Education and Early Development has been working with the governor's office to try and address the issue of school construction projects on the department's school construction grant list. 8:13:11 AM SENATOR DAVIS moved to report SB 237 out of committee with individual recommendations and attached fiscal note(s). There being no objection, SB 237 moved from committee.
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