Legislature(2013 - 2014)BELTZ 105 (TSBldg)
03/17/2014 08:00 AM Senate EDUCATION
| Audio | Topic |
|---|---|
| Start | |
| SJR23 | |
| SB195 | |
| SB100 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 195 | TELECONFERENCED | |
| += | SJR 23 | TELECONFERENCED | |
| += | SB 100 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SJR 23-CONST. AM: STUDENT LOAN DEBT
8:01:33 AM
CHAIR STEVENS announced the consideration of SJR 23, version U.
SENATOR ANNA FAIRCLOUGH, Alaska State Legislature, Juneau,
Alaska, sponsor of SJR 23, explained that the bill proposes to
ask voters if the state can refinance post-secondary student
loans. It would allow the state to use its good credit to
provide students in the past and future with a lower interest
rate.
CHAIR STEVENS opened and closed public testimony.
8:03:02 AM
SENATOR STEDMAN asked why a constitutional amendment is needed
instead of going through an appropriations process.
CHAIR STEVENS announced the arrival of Senator Huggins.
SENATOR FAIRCLOUGH explained that Alaska's constitution only
allows bonding, with the full faith and credit of the state, for
housing loans for veterans and for capital improvement projects.
SENATOR STEDMAN restated the question and asked why the
treasury's ability to restructure notes is not used, or other
loan programs, instead of changing the constitution.
SENATOR FAIRCLOUGH said it certainly is up to the will of the
body if they want to use general fund dollars, but that is
something that has not been done in the past. She explained
that, currently, the loans are issued against the revenues that
the students will pay, a higher percentage than the bond market.
SENATOR STEDMAN asked if there is no other mechanism to achieve
the goal, short of changing the constitution.
SENATOR FAIRCLOUGH said the legislature could fully fund the
program if they opted to. There would be an issue of fairness
due to the number of loans still due.
She related that before this could happen, it would go to a vote
of the people in the 2014 election. Next, the commission would
have to seek approval by the legislature. In 2016, at the
earliest, voters would have to approve the constitutional
amendment. The earliest a student could receive the benefits
would be in 2017.
8:06:25 AM
CHAIR STEVENS said the actual vote would take place in the
general election of 2014.
SENATOR FAIRCLOUGH said yes.
SENATOR DUNLEAVY moved to report SJR 23 from committee with
individual recommendations and attached fiscal notes. There
being no objection, SJR 23 was reported from the Senate
Education Standing Committee.
8:07:05 AM
At ease
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