Legislature(2013 - 2014)BELTZ 105 (TSBldg)
03/14/2014 08:00 AM Senate EDUCATION
| Audio | Topic |
|---|---|
| SB100 | |
| Start | |
| SB139 | |
| SB100 | |
| SB139 | |
| SB208 | |
| SB113 | |
| SB147 | |
| SB100 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 139 | TELECONFERENCED | |
| += | SB 113 | TELECONFERENCED | |
| += | SB 100 | TELECONFERENCED | |
| = | SB 147 | ||
| = | SB 208 | ||
SB 208-SCHOOL CONSTRUCTION BOND DEBT
9:12:31 AM
Chair Stevens announced the consideration of SB 208. He noted
the intent to move the bill from committee. He noted the new
committee substitute (CS), Version U.
SENATOR DUNLEAVY moved to adopt the CS for SB 208, labeled 28-
LS1527\U, as the working document.
CHAIR STEVENS objected for discussion purposes.
TIM LAMKIN, Staff, Senator Gary Stevens, Alaska State
Legislature, Juneau, Alaska, explained that Version U is
identical to language contained in Version N of SB 139. The main
thrust of the bill is on pages 6 and 7. The bill changes the
structure by which school districts might qualify for
construction reimbursement. An amendment would be needed before
moving forward with the bill on page 7, line 2 and line 13, the
words "or equal to" would follow "less than." He understood that
the language targets only the Lake and Peninsula School
District.
DAVID SCOTT, Staff, Senator Donny Olson, Alaska State
Legislature, Juneau, Alaska, presented information regarding SB
208 on behalf of the sponsor. He explained the legislation is
designed to encourage all rural schools to address facility
improvements by issuing debt, versus waiting for a state grant.
9:16:35 AM
SENATOR STEDMAN asked why the ratio is 80/20 instead of 70/30,
which districts are affected, and what tax base would be
required.
MR. SCOTT said there are seven districts that are at the 20
percent level and there are several that are at 5 percent, but
they may not have the necessary economy to bond.
SENATOR STEDMAN said he did not understand the difference
between Klawock's and Craig's percentages.
MR. SCOTT said Craig is at 10 percent.
SENATOR STEDMAN questioned how they could have different debt
reimbursement levels.
MR. SCOTT explained that they both would fall under the 80/20
provision of the bill. They have different local participating
shares. Craig is at 10 percent; Hydaburg is at 20 percent. The
formula is in law and districts move in and out of different
levels.
9:19:46 AM
CHAIR STEVENS asked about the wording change in the amendment.
MR. SCOTT said the first language was very broad. It needed to
include those at a lower percentage rate if they were able to
participate.
SENATOR HUGGINS asked if there is a fiscal projection.
MR. SCOTT referred to Section 2, which relates to only one
project - Port Alsworth.
SENATOR HUGGINS asked what the project consists of.
MR. SCOTT said it is a major maintenance project for Port
Alsworth's school.
SENATOR HUGGINS inquired further about maintenance details.
MR. SCOTT said he does not have that information.
SENATOR DUNLEAVY said Port Alsworth's expansion is due to a
population growth.
9:22:28 AM
ELIZABETH NUDELMAN, Director, School Finance and Facilities,
Department of Education and Early Development (DEED), Juneau,
Alaska, spoke to the fiscal note for SB 208. She related that
those districts in the state grant program with a participating
share of 20 percent or less would be eligible for debt
reimbursement at 80 percent, rather than 70 percent. Of the 12
districts that fall into that category, three have participated
in the debt program in the last ten years: Northwest Arctic,
Lake and Peninsula Borough, and Dillingham. She said the
retroactive language is specifically for Lake and Peninsula. The
voters have approved 70 percent debt at $16.8 million and $15
million of that is for renovation and expansion of the Port
Alsworth School.
She commented that the correction "equal or less than" matches
the intent of the bill.
SENATOR DUNLEAVY said it would be hard to make a decision on the
bill. He suggested holding the bill.
CHAIR STEVENS agreed. He maintained his objection and held SB
208 in committee.