Legislature(1999 - 2000)
02/16/2000 01:32 PM Senate HES
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 127-UNIVERSITY OF ALASKA SCHOLARSHIPS
ANN RINGSTAD, Government Relations Director for the Statewide
Office of University Relations, University of Alaska (UA), stated
support for SB 127 and made the following comments. This
legislation came before the committee in a different form last
year. It allowed the UA to get from high schools the names and
addresses of students who qualify for the Alaska Scholars Program.
SB 127 will put the Alaska Scholars Program into statute and it
repeal statutory language about other scholarship programs that may
or may not be in effect right now.
CHAIRMAN MILLER noted the committee has a work draft before it
labelled "Ford 2/16/00 - GS 1029/D." He asked Ms. Ringstad to
address that version (Version D) of the bill.
MS. RINGSTAD said Version D aligns the legislation with the program
that is in place today.
SENATOR WILKEN asked if Version D funds the Alaska Scholars Program
out of the Alaska Student Loan Corporation (ASLC) profits.
MR. JIM LYNCH, Vice President of Finance for the University of
Alaska, replied he does not think this bill does that.
MS. RINGSTAD clarified that the Governor has submitted legislation
to use proceeds from the ASLC. That legislation does not
necessarily state that those funds will be applied to SB 127 but
the bill's fiscal note could lead one to believe that some of that
money will be used to fund it. The UA plans to fund the program
out of its own pocket in FY00 and FY01 and is not asking for
general funds until next year.
CHAIRMAN MILLER asked if Version D merely sets the scholarship
eligibility criteria in statute.
MS. RINGSTAD said that is correct.
Number 2229
SENATOR WILKEN asked whether there is any connection between
Version D and the ASLC proceeds.
MS. RINGSTAD replied, "There could be, that could be part of the
funds to be used in the future to be paid in the future to pay for
a portion of it."
CHAIRMAN MILLER asked if anything attaches those funds to this
bill.
MS. RINGSTAD said there is not.
Number 2258
CARL ROSE, Association of Alaska School Boards, stated support for
this legislation because it addresses the AASB's concern that
education be viewed as a kindergarten through university level
experience rather than a K-12 experience.
CHAIRMAN MILLER asked Mr. Lynch to come back to the table.
SENATOR WILKEN indicated that the fiscal note for Version D (CSSB
127(HES) clearly states that the fiscal note assumes the return of
capital payments from the ASLC to partially fund the Alaska
Scholars Program. He maintained that language creates a very clear
connection between Version D and the Alaska Scholars Program.
MR. LYNCH said he has not seen that fiscal note.
CHAIRMAN MILLER noted that Mr. Lynch's signature is on the fiscal
note.
SENATOR WILKEN asked Mr. Lynch when he found out about this scheme.
MR. LYNCH replied February 11.
SENATOR WILKEN asked Mr. Lynch if he is aware of the debt that the
ASLC owes the debt to the State of Alaska.
MR. LYNCH replied that he is aware that there is a debt but he does
not know the amount.
SENATOR WILKEN noted that debt is about $42 million. He asked
Chairman Miller if he has received any comments from Diane Barrans
of the ASLP about this legislation.
CHAIRMAN MILLER said he has not.
SENATOR WILKEN made the following comment.
I am not particularly concerned about the bill itself - I have
great concern about the fact that someone, somewhere decided
that they were going to take $6 million that the student loan
corporation has worked hard to become profitable and this
Legislature and Administration's helped them do that - and as
soon as we get $6 million into the plus, we ignore the
promises made in the past and we come trumped up with some
political deal to fund the Scholars Program because some one
person happened to think it's a great idea, and I suggest that
we just take this bill and put it in our pockets and leave
until all the people can be on board."
TAPE 00-05, SIDE B
SENATOR WILKEN pointed out that he sits on the ASLC Board and that
Board members had a cursory discussion at the August and December
meeting about using the $6 million to pay the debt. Suddenly, in
February, this has been rolled out to the public as if the entire
Board believes this is a good idea. He repeated that he is totally
supportive of the Scholars Program but he does not support taking
money that should be paying back the people of Alaska without
taking the proper steps to get the ASLC on board, as well as its
managers and the Legislature. He expressed frustration that
Version D short-circuits the entire process. He repeated that he
supports making changes to fix the Scholars Program in general, but
if legislation is connected to the student loan proceeds, and prior
commitments to that money are ignored, he is opposed to it.
SENATOR ELTON asked Mr. Lynch and Ms. Ringstad whether the UA could
operate the Alaska Scholars Program if it is not enshrined in
statute.
MR. LYNCH said it is his opinion that the UA could continue to run
the program.
SENATOR ELTON asked if Senator Wilken's concerns are extant in the
legislative body, whether the UA could continue the program until
a resolution to the funding source is found.
MR. LYNCH noted the bill also contains a few repealers for other
programs.
SENATOR ELTON asked if those provisions need to be repealed this
session.
MR. LYNCH said there is a cost associated with those provisions.
SENATOR ELTON suggested that Mr. Lynch get back to the committee
with those costs and provide information on why the provisions need
to be repealed. He agreed with Senator Wilken that the committee
should hold on to the bill for awhile.
There being no further testimony on SB 127, CHAIRMAN MILLER asked
Mr. Lynch and Ms. Ringstad to contact the ASLC and Senator Wilken
to discuss the concerns expressed today.
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