Legislature(2017 - 2018)SENATE FINANCE 532
04/23/2018 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB147 | |
| HB176 | |
| HB213 | |
| HB216 | |
| HB267 | |
| HB400 | |
| HB212 | |
| HB216 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 147 | TELECONFERENCED | |
| += | HB 176 | TELECONFERENCED | |
| += | HB 213 | TELECONFERENCED | |
| += | HB 216 | TELECONFERENCED | |
| += | HB 267 | TELECONFERENCED | |
| += | HB 400 | TELECONFERENCED | |
| + | HB 212 | TELECONFERENCED | |
| + | TELECONFERENCED |
CS FOR HOUSE BILL NO. 212(RLS)
"An Act relating to funding for school construction
and major maintenance; relating to the regional
educational attendance area and small municipal school
district fund; and providing for an effective date.
10:14:47 AM
Co-Chair MacKinnon read the title of the bill.
10:15:22 AM
AT EASE
10:15:44 AM
RECONVENED
REPRESENTATIVE NEAL FOSTER, SPONSOR, offered a brief
Sponsor Statement:
House Bill 212 expands the Regional education
attendance area and small municipal school district
fund to include major maintenance in addition to new
school construction.
The Regional education attendance (REAA) fund was
established during the 2010 legislative session. This
fund was created to provide equity in school
construction funding for rural Alaska pursuant to the
Kasayulie decision. This new fund created a funding
stream to pay for prioritized REAA projects on the
department's annual Capital Improvement Project (CIP)
school construction list. In 2013 small municipal
school districts were included in the REAA fund, as
qualified under AS 14.11.025.
HB 212 would allow for REAAs and small municipal
school districts to fund major maintenance as well as
school construction under AS 14.11.030, the regional
educational attendance area and small municipal school
district fund.
JANE PIERSON, STAFF, REPRESENTATIVE FOSTER, discussed the
Sectional Analysis (copy on file):
Section 1. Amends AS 14.11.030 - The regional
education attendance area and small municipal school
district fund (a) to include major maintenance as well
as new school construction.
Sec. 2. Amends AS 14.11.030(b) To clarify that the
maximum statutory fund balance should be calculated to
include only the unexpended and unobligated balance of
the REAA fund.
Sec. 3. Adds a new sub-section (e) to AS 14.11.030
that states that up to 20% of the available fund
balance in a fiscal year can go to school maintenance.
Sec. 4. Amends AS 14.11.035 The Report on School
Construction and Major Maintenance Funding to include
reporting on state aid for major maintenance.
Sec. 5 Adds an effective date of July 1, 2021
10:18:04 AM
Co-Chair MacKinnon asked about the July 1, 2021 effective
date.
Ms. Pierson referenced Attachment 3 in the bill packet
(copy on file). She noted that there were three schools on
the list that carried large monetary amounts. The intent of
the effective date was to make sure that the true nature of
the fund, to fund new school construction, was preserved.
Representative Foster thanked the committee.
Co-Chair MacKinnon OPENED public testimony.
Co-Chair MacKinnon CLOSED public testimony.
10:19:43 AM
Vice-Chair Bishop discussed FN1, OMB Component 2737,
Department of Education and Early Development, School
Finance and Facilities. He read from the analysis:
The bill will require changes to regulations to
identify the priority lists, which currently is just
the School Construction Grant Fund list and the Major
Maintenance Grant Fund list. It is anticipated that
necessary regulation changes could occur with current
staffing.
There is no fiscal impact to the department under this
bill.
Co-Chair MacKinnon returned to her query into the effective
date, and maintenance funds. She wondered why the bill
would hold off on implementation until 2021.
TIM MEARIG, FACILITIES MANAGER, DEPARTMENT OF EDUCATION AND
EARLY DEVELOPMENT, understood that sponsor wanted to
preserve the priority of large projects on the school
construction list.
10:23:31 AM
Senator Olson voiced the same concern that there was three
additional years of facility deterioration to consider with
an effective date of 2021. He mentioned climate change and
geographic weather concerns.
10:24:15 AM
AT EASE
10:28:07 AM
RECONVENED
Co-Chair MacKinnon reminded that the committee was
discussing HB 212.
Vice-Chair Bishop commented that the committee had a
recurring conversation regarding standardization of school
construction. He considered the importance of crafting a
standardization policy for school construction.
Co-Chair MacKinnon commented that the committee had asked
inserted intent language that requested that the department
investigate standardization of school construction and the
department had responded, through the Legislative Budget
and Audit process, that it was not cost effective. She
believed that standardization would save the state money.
She noted that there were 4 new schools in rural Alaska
that would benefit from standardization in the way of cost
savings to the state.
Mr. Mearig stated that the department did encourage
standardization, and districts were making efforts to
optimize the operation and maintenance on facilities.
Co-Chair MacKinnon relayed that she served on a committee
and appreciated public participation. She had offered a
bill that stopped architects from being able to bid on
construction of state buildings put forth in contests. She
felt that standardization of the building design would lead
to more cost-effective construction and maintenance.
CSHB 212(RLS) was HEARD and HELD in committee for further
consideration.
Co-Chair MacKinnon announced a recess and discussed
housekeeping.
10:33:23 AM
RECESSED
11:06:07 AM
RECONVENED