Legislature(2001 - 2002)

02/05/2001 01:32 PM Senate HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
            SB   2-MUNICIPAL SCHOOL BOND REIMBURSEMENT                                                                      
                                                                                                                                
MS.  MARY JACKSON,  aide  to Senator  Torgerson,  sponsor  of SB  2,                                                            
explained the  measure as follows.  HB 281, which  passed last year,                                                            
was a bonding package that  included a number of projects, including                                                            
school bonds.   The timeframe for that bonding package  is from 1998                                                            
to 2004. SB 2  predominantly affects the Anchorage  School District.                                                            
SB 2 exempts  Anchorage from  the requirement  to adhere to  some of                                                            
the ballot  proposition language currently  in statute and  corrects                                                            
an unintended glitch in HB 281.                                                                                                 
                                                                                                                                
CHAIR  GREEN  asked if  the  Mat-Su  Borough  ever fell  within  the                                                            
troublesome part of HB 281.                                                                                                     
                                                                                                                                
MS.  JACKSON replied  Mat-Su  was included  in  HB 281  and was  the                                                            
reason the bill was retroactive  to 1998.  Her understanding is that                                                            
the Mat-Su Borough  has taken full advantage of all  of the bonds so                                                            
it does  not have to come  back under this  program.  She  explained                                                            
that  Anchorage  put  a vote  before  the  voters  for  100  percent                                                            
reimbursement, instead of a 70-30 split.                                                                                        
                                                                                                                                
CHAIR GREEN asked if all other language is the same.                                                                            
                                                                                                                                
MS. JACKSON said  it is.  She pointed out the first  revision to the                                                            
law is on page 4 and that Section 1 is in existing law.                                                                         
                                                                                                                                
CHAIR GREEN asked what cost is associated with SB 2.                                                                            
                                                                                                                                
MS. JACKSON  said the fiscal  note is zero  because it applies  to a                                                            
previous bond.                                                                                                                  
                                                                                                                                
CHAIR GREEN took public testimony.                                                                                              
                                                                                                                                
MS. DEBBIE OSSIANDER, Anchorage  School Board, stated strong support                                                            
for SB 2. She explained  that technical language problems prohibited                                                            
Anchorage from  taking full advantage  of HB 281.  Anchorage  voters                                                            
approved $77.9  million worth of school  bonds.  At the time  no one                                                            
knew  whether  any  state  reimbursement   for  those  bonds  was  a                                                            
possibility.  Passage of SB 2 will  enable Anchorage to follow  suit                                                            
with other  districts and take advantage  of previously apportioned                                                             
money.                                                                                                                          
                                                                                                                                
CHAIR GREEN  asked Ms. Ossiander  if Anchorage  was included  in the                                                            
conversation about HB 281 last year.                                                                                            
                                                                                                                                
MS.  OSSIANDER said  it  was and  that  Anchorage lobbied  for  debt                                                            
reimbursement.   Unfortunately, at the time, Anchorage  did not know                                                            
what percentage  of debt reimbursement was possible.   At the advice                                                            
of bond counsel,  language was put  forth to the voters saying  that                                                            
Anchorage  would attempt to  go for debt  reimbursement but,  if not                                                            
available, 100 percent would be paid locally.                                                                                   
                                                                                                                                
SENATOR WARD asked how much money is involved.                                                                                  
                                                                                                                                
MR.  EDDY  JEANS,  school finance  manager  for  the  Department  of                                                            
Education and Early Development  (DOEED), said SB 2 only affects the                                                            
Anchorage School District  and possibly one project in the Northwest                                                            
Arctic  Borough.  Under  HB 281,  the legislature  passed a  lengthy                                                            
debt reimbursement list.   Unfortunately, this will continue to be a                                                            
problem  in the  future  as  municipalities  continue  to get  voter                                                            
approval  for projects when  the debt reimbursement  program  has no                                                            
authorization  for  those  projects.    DOEED will  not  review  and                                                            
approve projects  for a debt  reimbursement  program if there  is no                                                            
authorization.   That is exactly what happened in  Anchorage.  There                                                            
was no  authorization on  the books but Anchorage  decided to  go to                                                            
the voters for  approval.  Key elements were not on  the ballot that                                                            
were  required   by  the   legislation,  such   as  the  amount   of                                                            
reimbursement  from  the State,  the  estimated  total  cost of  the                                                            
project, the  estimated interest,  and the estimated annual  cost of                                                            
operation and  maintenance.  DOEED  will not review ballot  language                                                            
if it  does not have  authorization  on the books  so Anchorage  got                                                            
ahead of DOEED.                                                                                                                 
                                                                                                                                
CHAIR GREEN asked if the  Mat-Su Borough came back to DOEED after it                                                            
held its election.                                                                                                              
                                                                                                                                
MR. JEANS said it did.                                                                                                          
                                                                                                                                
CHAIR GREEN  asked if it  was assumed that  Anchorage would  qualify                                                            
when HB 281 was enacted.                                                                                                        
                                                                                                                                
MR. JEANS said that he could make that assurance.                                                                               
                                                                                                                                
SENATOR DAVIS asked Ms.  Ossiander for the projects those bonds will                                                            
cover.                                                                                                                          
                                                                                                                                
MS. OSSIANDER replied SB  2 applies to the bonds that were passed on                                                            
April 4, 2000.  The projects include:                                                                                           
                                                                                                                                
   · Phase 1 Bartlett High School                                                                                               
   · Phase 2 and 3 Chugiak High School                                                                                          
   · Phase 1 East High School                                                                                                   
   · Phase 1 Service High School                                                                                                
   · Phase 1 Wendler Middle School                                                                                              
   · The Denali Elementary replacement project                                                                                  
   · District wide renewal/replacement ADA code grades, roof                                                                    
     replacements, Girdwood roof replacement, electrical upgrades                                                               
     and traffic safety work.                                                                                                   
                                                                                                                                
CHAIR GREEN  noted an absence of any  reference to charter  schools.                                                            
                                                                                                                                
MS. OSSIANDER said that is true.                                                                                                
                                                                                                                                
CHAIR GREEN asked what  it would take to get a charter school on the                                                            
list.                                                                                                                           
                                                                                                                                
MS. OSSIANDER said it would  take a bit of a philosophical shift for                                                            
the Board.  Currently,  the Board assumes that charter schools would                                                            
deal with their own building needs.                                                                                             
                                                                                                                                
There being no  further testimony on SB 2, SENATOR  LEMAN moved SB 2                                                            
from committee  with individual  recommendations  and a zero  fiscal                                                            
note,  if there  is  one.   There  being no  objection,  the  motion                                                            
carried.                                                                                                                        

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