Legislature(1993 - 1994)

04/19/1993 08:33 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         APRIL 19, 1993                                        
                            8:33 A.M.                                          
                                                                               
  TAPE HFC 93 - 107, Side 2, #000 - end.                                       
  TAPE HFC 93 - 108, Side 1, #000 - #496.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Ron Larson called the  meeting of the House Finance                 
  Committee to order at 8:33 A.M.                                              
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Brown                           
  Co-Chair MacLean              Representative Foster                          
  Representative Grussendorf    Representative Therriault                      
  Representative Hoffman        Representative Martin                          
  Representative Navarre        Representative Parnell                         
                                                                               
  Representative Hanley was not present for the meeting.                       
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Edwin  Gonlon,  Superintendent,   Northwest  Arctic   School                 
  District, Kotzebue, Alaska;  Dwayne Guiley, Director, School                 
  Finance,  Department  of  Education;  Representative  Bettye                 
  Davis.                                                                       
                                                                               
  SUMMARY INFORMATION                                                          
  HB 82     An Act relating to  school construction grants and                 
            major  maintenance  grants  to  school  districts;                 
            providing for school district participation in the                 
            cost of school construction and major maintenance;                 
            creating  a  major  maintenance  grant  fund;  and                 
            providing for an effective date.                                   
                                                                               
            HB   82  was   held  in   Committee  for   further                 
  discussion.                                                                  
  HB 83     An Act making appropriations  for construction and                 
            major maintenance of schools; and providing for an                 
            effective date.                                                    
                                                                               
            HB   83  was   held  in   Committee  for   further                 
  discussion.                                                                  
  HOUSE BILL 82                                                                
                                                                               
       "An  Act relating  to  school  construction grants  and                 
                                                                               
                                1                                              
                                                                               
                                                                               
       major maintenance grants to school districts; providing                 
       for school district participation in the cost of school                 
       construction  and major  maintenance; creating  a major                 
       maintenance grant fund; and providing for an  effective                 
       date."                                                                  
                                                                               
  EDWIN  GONLON,  SUPERINTENDENT,   NORTHWEST  ARCTIC   SCHOOL                 
  DISTRICT, KOTZEBUE, ALASKA, addressed concerns regarding the                 
  legislation.    He noted  that only  a  REAA would  have the                 
  opportunity to  apply  for  a waiver.    The  Kotzebue  area                 
  contains the highest unemployment rate, per capita income is                 
  low and  the  borough currently  does  not have  a  property                 
  taxing system in  place.   The community does  not have  the                 
  resources necessary to provide  a match in order to  be able                 
  to participate  in the  construction process.   In  order to                 
  receive a school construction or  major maintenance grant, a                 
  school district must  provide a  participating share of  the                 
  project cost.                                                                
                                                                               
  Mr. Gonlon urged the Committee  to consider amending Page 2,                 
  Line  30  by  deleting  the language  "regional  educational                 
  attendance area" and inserting "district".  [Attachment #1].                 
                                                                               
                                                                               
  DWAYNE  GUILEY,  DIRECTOR,  SCHOOL  FINANCE,  DEPARTMENT  OF                 
  EDUCATION, provided  the Committee a sectional  analysis for                 
  CS  HB  82  (HES).   He  pointed  out  that the  legislation                 
  separates construction  grants into  two categories;  grants                 
  for school construction and grants  for major maintenance of                 
  school  facilities.  The  legislative appropriations for the                 
  two different types of school facility projects will go into                 
  the  appropriate fund  and will  be subject to  the existing                 
  grant procedures as indicated in AS 14.11.                                   
                                                                               
       Section 1 provides that the Department may not  award a                 
       school construction or major maintenance grant under AS                 
       14.11 to a municipality that is  a school district or a                 
       REAA  that  is  not in  compliance  with  the insurance                 
       requirements of AS 14.03.050 (a).                                       
                                                                               
       Section  2  extends  the duties  of  the  Department of                 
       Education under AS 14.07.020 (a)(11)  to include review                 
       of major maintenance projects.                                          
                                                                               
       Section 3 establishes a major maintenance grant fund in                 
       the general fund through legislative appropriations for                 
       school major maintenance.                                               
                                                                               
       Section 4 amends  the section on grant  applications to                 
       reflect  the  new  major  maintenance  grant  fund  and                 
       eliminates the reference to school construction.                        
                                                                               
                                                                               
                                2                                              
                                                                               
                                                                               
       Section 5 substitutes  capital improvement project  for                 
       the term  construction in  reference to grants under AS                 
       14.11.013 (a).                                                          
                                                                               
       Section 6  amends AS  14.11.013 (b)  to substitute  the                 
       term capital  improvement project for  construction and                 
       by eliminating the term school construction.                            
                                                                               
       Section  7 eliminates the  term school  construction in                 
       reference to  approval of  a grant  application.   This                 
       section would provide that the  grants will be approved                 
       only to  the  extent that  money  is available  in  the                 
       appropriate fund.                                                       
                                                                               
       Section 8 eliminates the term school construction under                 
       grant conditions for  a municipality  that is a  school                 
       district or a REAA.                                                     
                                                                               
       Section 9 adds a new subsection to allow the Department                 
       by   regulation   to   establish   time   periods   for                 
       establishing costs of school construction.                              
                                                                               
       Section 10 eliminates the term school construction from                 
       grant appropriation under  AS 14.11.019 and substitutes                 
       the    terms    capital   improvement    projects   for                 
       construction.                                                           
                                                                               
       Section  11  changes  the  definition  section.    This                 
       section would  define "capital improvement  project" to                 
       mean to school  construction or major maintenance.   It                 
       would  define  "grant"  to  mean  a  grant  for  school                 
       construction or major maintenance.                                      
                                                                               
       Section 12 allows that  changes made by this  Act apply                 
       to  grants awarded under AS 14.11.005  - 019 after June                 
       30, 1993.                                                               
                                                                               
       Section 13 provides an effective date.                                  
                                                                               
  Representative   Brown  asked   if  the   "cost  of   school                 
  construction" would  include  the  technology  purchases  of                 
  computer systems.  Mr. Guiley stated it would.                               
                                                                               
  Representative Grussendorf  pointed  out that  there  is  no                 
  prioritization   between   construction    and   maintenance                 
  projects.  He recommended that legislation should  encourage                 
  maintenance  rather than  construction.   Mr. Guiley  stated                 
  that HB 82 would allow the Legislature  to concurrently fund                 
  both types of projects.   It will require the  Department to                 
  continue to prioritize projects.  The Legislature then would                 
  have the authority to tilt the funding.                                      
  Representative Martin advised that  maintenance needs not be                 
                                                                               
                                3                                              
                                                                               
                                                                               
  funded  through  the capital  budget.   Mr.  Guiley replied,                 
  currently there  are  not any  restrictions for  categorical                 
  expenditures  associated  with   public  school   foundation                 
  dollars.    Money  allocated  to  the school  districts  are                 
  subject to  the local  school board  for budget  management.                 
  There is no specific formula  which provides for maintenance                 
  activity.                                                                    
                                                                               
  Mr.  Guiley  stated  that  under  current  regulations,  the                 
  Department  is  required  to  put  first, life,  health  and                 
  safety.    He  added  that  the Department  is  anticipating                 
  rewriting   the  regulations   and  the   prioritization  of                 
  projects.  All projects are rated  in category types and are                 
  ranked 1 - 7 in importance.  That list is then published and                 
  the Governor is then obligated by  statute to include in the                 
  capital appropriation  bill  a list  of school  construction                 
  projects which are derived from the Department's lists.                      
                                                                               
  (Tape Change, HFC 93 - 108, Side 1).                                         
                                                                               
  Mr.  Guiley  stated  that  the  Department  has  prioritized                 
  categories #1 &  #2.  Current  law provides the  opportunity                 
  for  the  Legislature  to  make  one  appropriation  to  the                 
  Department of Education.                                                     
                                                                               
  The  major maintenance projects are the  ones listed on Page                 
  4, Line 2  & 3.  The  school construction fund picks  up the                 
  other projects defined on Page 3, Sections (A), (B), (F) and                 
  (G).  Co-Chair MacLean understood that the legislation would                 
  provide  more  flexibility to  the  priorities.   Mr. Guiley                 
  agreed.                                                                      
                                                                               
  Representative Hoffman asked  why the first category  is not                 
  mandated.  He pointed out that category addresses the health                 
  and safety of the  school children.  Mr. Guiley  stated that                 
  the  current  statute does  not  give  priority  to any  one                 
  classification.    The  Department  of  Education does  have                 
  regulations which  address  that  concern.    Representative                 
  Hoffman recommended not changing this structure.                             
                                                                               
  Mr. Guiley stated that if HB 82  and HB 83 were to pass, the                 
  Department of Education would completely  fund all the life,                 
  health and safety projects on the current list.                              
                                                                               
  Representative Martin expressed concern that the legislation                 
  could  create  incentive  to  incorporated  areas  to become                 
  single site districts.  Mr.  Guiley stated that the proposed                 
  legislation  establishes  the match  based  on an  amount of                 
  local wealth available for each community served.  The  size                 
  of the school district is immaterial.  The legislation would                 
  not serve  as an  incentive for  a district  to incorporate.                 
  The  advantage  to  a district  to  be  incorporated is  the                 
                                                                               
                                4                                              
                                                                               
                                                                               
  ability  to provide  more to  the students  above  the basic                 
  needs.  An  REAA is  restricted to funding  only the  "basic                 
  need".                                                                       
                                                                               
  Co-Chair MacLean echoed Representative Martin's concerns and                 
  referenced the handout  provided by  him.  [Attachment  #2].                 
  Co-Chair  MacLean  asked  if the  fish  tax  and the  forest                 
  receipts had  been taken  into consideration  of the  wealth                 
  factor  in the  determination for  the  match section.   Mr.                 
  Guiley stated that  the federal forest receipts and fish tax                 
  was not  considered.  The  calculations were based  upon the                 
  taxable value of  real and personal property  located within                 
  the district boundaries.   The ability to come with  a match                 
  can originate  from any other source other than grant funds.                 
                                                                               
                                                                               
  Representative Hoffman asked under what circumstances  could                 
  a  commissioner  deny a  waiver  if  a REAA  were  unable to                 
  provide their participating share.  Mr. Guiley replied those                 
  situations would be arise when  a REAA would have sufficient                 
  fund balance in a capital project fund designated for future                 
  construction and  then that  district wished  to hold  those                 
  funds for use  ofa different  project.  Discussion  followed                 
  regarding the  qualifications of  receiving a  waiver.   Mr.                 
  Guiley  added  that with  the passage  of the  legislation a                 
  "waiver" will  not be easy  to get.   Traditionally,  REAA's                 
  have  set aside money  to help with  major projects, knowing                 
  that they would  not be funded  through the capital  funding                 
  process.  HB 82 and HB 83 would provide a vehicle from which                 
  to fund major projects.                                                      
                                                                               
  Representative  Hoffman  asked  the   Department's  position                 
  should the language on Page 3,  Line 2 be changed from "may"                 
  to  "shall".   Mr.  Guiley  advised that  the determiniation                 
  would no  longer continue  to be  at the  discretion of  the                 
  commissioner.                                                                
                                                                               
  Co-Chair Larson  stressed that  the Department  of Education                 
  can not  establish what  is equitable  in determining  major                 
  school  construction.    He  noted  that  he  supported  the                 
  legislation.                                                                 
                                                                               
  HB 82 was HELD in Committee for further discussion.                          
  HOUSE BILL 83                                                                
                                                                               
       "An Act  making  appropriations  for  construction  and                 
       major  maintenance  of schools;  and  providing for  an                 
       effective date."                                                        
                                                                               
  Mr. Guiley provided the Committee a sectional analysis of CS                 
  HB 83 (HES).                                                                 
                                                                               
                                5                                              
                                                                               
                                                                               
       Section   1   appropriates   $109,441,663    from   the                 
       constitutional  budget  reserve   fund  to  the  school                 
       construction  grant  fund  and  allocates  payments  to                 
       school  districts   and   REAA's   subject   to   grant                 
       conditions.                                                             
                                                                               
       Section   2   appropriates    $41,819,937   from    the                 
       constitutional  budget   reserve  fund  to   the  major                 
       maintenance grant fund and allocates payments to school                 
       districts and REAA's subject to grant conditions.                       
                                                                               
       Section  3 provides  that appropriations under  the Act                 
       are  for  capital  projects  and  are  subject  to  the                 
       provisions  of  AS  37.25.020  relating  to  unexpended                 
       balances of appropriations for capital projects.                        
                                                                               
       Section 4 provides  for an effective date  for sections                 
       one and three of the Act.                                               
                                                                               
       Section 5 provides that section two takes effect on the                 
       effective date of  an Act creating a  major maintenance                 
       grant fund in AS 14.11.                                                 
                                                                               
  HB 83 was HELD in Committee for further consideration.                       
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 9:45 A.M.                                           
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         APRIL 19, 1993                                        
                            8:33 A.M.                                          
                                                                               
  TAPE HFC 93 - 107, Side 2, #000 - end.                                       
  TAPE HFC 93 - 108, Side 1, #000 - #496.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Ron  Larson called the meeting of the House Finance                 
  Committee to order at 8:33 A.M.                                              
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Brown                           
  Co-Chair MacLean              Representative Foster                          
  Representative Grussendorf    Representative Therriault                      
  Representative Hoffman        Representative Martin                          
  Representative Navarre        Representative Parnell                         
                                                                               
  Representative Hanley was not present for the meeting.                       
                                                                               
                                6                                              
                                                                               
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Edwin  Gonlon,  Superintendent,   Northwest  Arctic   School                 
  District, Kotzebue, Alaska; Dwayne Guiley, Director,  School                 
  Finance,  Department  of  Education;  Representative  Bettye                 
  Davis.                                                                       
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  HB 82     An Act relating to school construction grants  and                 
            major  maintenance  grants  to  school  districts;                 
            providing for school district participation in the                 
            cost of school construction and major maintenance;                 
            creating  a  major  maintenance  grant  fund;  and                 
            providing for an effective date.                                   
                                                                               
            HB   82  was   held   in  Committee   for  further                 
  discussion.                                                                  
                                                                               
  HB 83     An Act making  appropriations for construction and                 
            major maintenance of schools; and providing for an                 
            effective date.                                                    
                                                                               
            HB   83  was   held   in  Committee   for  further                 
  discussion.                                                                  
                                                                               
  HOUSE BILL 82                                                                
                                                                               
       "An Act  relating  to school  construction  grants  and                 
       major maintenance grants to school districts; providing                 
       for school district participation in the cost of school                 
       construction  and major  maintenance; creating  a major                 
       maintenance  grant fund; and providing for an effective                 
       date."                                                                  
                                                                               
  EDWIN  GONLON,  SUPERINTENDENT,   NORTHWEST  ARCTIC   SCHOOL                 
  DISTRICT, KOTZEBUE, ALASKA, addressed concerns regarding the                 
  legislation.    He noted  that only  a  REAA would  have the                 
  opportunity  to apply  for  a  waiver.   The  Kotzebue  area                 
  contains the highest unemployment rate, per capita income is                 
  low  and the  borough  currently does  not  have a  property                 
  taxing system in  place.   The community does  not have  the                 
  resources necessary to provide  a match in order to  be able                 
  to participate  in the  construction process.   In order  to                 
  receive a school construction or  major maintenance grant, a                 
  school district must  provide a  participating share of  the                 
  project cost.                                                                
                                                                               
  Mr. Gonlon  urged the Committee to consider amending Page 2,                 
  Line  30  by  deleting  the  language "regional  educational                 
  attendance area" and inserting "district".  [Attachment #1].                 
                                                                               
                                7                                              
                                                                               
                                                                               
  DWAYNE  GUILEY,  DIRECTOR,  SCHOOL  FINANCE,  DEPARTMENT  OF                 
  EDUCATION, provided  the Committee a  sectional analysis for                 
  CS  HB  82  (HES).   He  pointed  out  that the  legislation                 
  separates  construction grants  into two  categories; grants                 
  for school construction and grants  for major maintenance of                 
  school facilities.  The  legislative appropriations for  the                 
  two different types of school facility projects will go into                 
  the appropriate  fund and  will be  subject to the  existing                 
  grant procedures as indicated in AS 14.11.                                   
                                                                               
       Section 1 provides that the Department may not award  a                 
       school construction or major maintenance grant under AS                 
       14.11 to a municipality that is  a school district or a                 
       REAA  that  is  not in  compliance  with  the insurance                 
       requirements of AS 14.03.050 (a).                                       
                                                                               
       Section  2  extends  the duties  of  the  Department of                 
       Education  under AS 14.07.020 (a)(11) to include review                 
       of major maintenance projects.                                          
                                                                               
       Section 3 establishes a major maintenance grant fund in                 
       the general fund through legislative appropriations for                 
       school major maintenance.                                               
                                                                               
       Section 4 amends  the section on grant  applications to                 
       reflect  the  new  major  maintenance  grant  fund  and                 
       eliminates the reference to school construction.                        
                                                                               
       Section 5 substitutes  capital improvement project  for                 
       the term   construction in reference to grants under AS                 
       14.11.013 (a).                                                          
                                                                               
       Section 6  amends AS  14.11.013 (b)  to substitute  the                 
       term capital  improvement project for  construction and                 
       by eliminating the term school construction.                            
                                                                               
       Section 7  eliminates the term  school construction  in                 
       reference to  approval of  a grant  application.   This                 
       section would provide that the  grants will be approved                 
       only  to the  extent  that money  is  available in  the                 
       appropriate fund.                                                       
                                                                               
       Section 8 eliminates the term school construction under                 
       grant conditions for  a municipality  that is a  school                 
       district or a REAA.                                                     
                                                                               
       Section 9 adds a new subsection to allow the Department                 
       by   regulation   to   establish   time   periods   for                 
       establishing costs of school construction.                              
                                                                               
                                                                               
                                8                                              
                                                                               
                                                                               
       Section 10 eliminates the term school construction from                 
       grant appropriation under AS 14.11.019 and  substitutes                 
       the    terms    capital   improvement    projects   for                 
       construction.                                                           
                                                                               
       Section  11  changes  the  definition  section.    This                 
       section would define  "capital improvement project"  to                 
       mean to school  construction or major maintenance.   It                 
       would  define  "grant"  to  mean  a  grant  for  school                 
       construction or major maintenance.                                      
                                                                               
       Section 12 allows that changes  made by this Act  apply                 
       to grants  awarded under AS 14.11.005 -  019 after June                 
       30, 1993.                                                               
                                                                               
       Section 13 provides an effective date.                                  
                                                                               
  Representative   Brown  asked   if   the  "cost   of  school                 
  construction"  would  include  the  technology purchases  of                 
  computer systems.  Mr. Guiley stated it would.                               
                                                                               
  Representative  Grussendorf  pointed  out that  there  is no                 
  prioritization   between   construction    and   maintenance                 
  projects.  He recommended  that legislation should encourage                 
  maintenance  rather than  construction.   Mr.  Guiley stated                 
  that HB 82 would allow the Legislature to  concurrently fund                 
  both types of projects.   It will require the  Department to                 
  continue to prioritize projects.  The Legislature then would                 
  have the authority to tilt the funding.                                      
  Representative Martin advised that maintenance needs  not be                 
  funded  through  the capital  budget.   Mr.  Guiley replied,                 
  currently  there are  not  any restrictions  for categorical                 
  expenditures  associated  with   public  school   foundation                 
  dollars.    Money  allocated  to  the school  districts  are                 
  subject to  the local  school board  for budget  management.                 
  There is no specific formula  which provides for maintenance                 
  activity.                                                                    
                                                                               
  Mr.  Guiley  stated  that  under  current  regulations,  the                 
  Department  is  required  to  put  first, life,  health  and                 
  safety.    He  added  that  the Department  is  anticipating                 
  rewriting   the  regulations   and  the   prioritization  of                 
  projects.  All projects are rated  in category types and are                 
  ranked 1 - 7 in importance.  That list is then published and                 
  the Governor is then obligated by  statute to include in the                 
  capital  appropriation bill  a  list of  school construction                 
  projects which are derived from the Department's lists.                      
                                                                               
  (Tape Change, HFC 93 - 108, Side 1).                                         
                                                                               
  Mr.  Guiley  stated  that  the  Department  has  prioritized                 
  categories #1 &  #2.  Current  law provides the  opportunity                 
                                                                               
                                9                                              
                                                                               
                                                                               
  for  the  Legislature  to  make  one  appropriation  to  the                 
  Department of Education.                                                     
                                                                               
  The major  maintenance projects are the ones  listed on Page                 
  4, Line 2  & 3.  The  school construction fund picks  up the                 
  other projects defined on Page 3, Sections (A), (B), (F) and                 
  (G).  Co-Chair MacLean understood that the legislation would                 
  provide  more  flexibility to  the  priorities.   Mr. Guiley                 
  agreed.                                                                      
                                                                               
  Representative Hoffman asked  why the first category  is not                 
  mandated.  He pointed out that category addresses the health                 
  and safety of the  school children.  Mr. Guiley  stated that                 
  the  current  statute  does not  give  priority  to  any one                 
  classification.   The  Department  of  Education  does  have                 
  regulations  which  address  that  concern.   Representative                 
  Hoffman recommended not changing this structure.                             
                                                                               
  Mr.  Guiley stated that if HB 82 and HB 83 were to pass, the                 
  Department of Education would completely  fund all the life,                 
  health and safety projects on the current list.                              
                                                                               
  Representative Martin expressed concern that the legislation                 
  could  create  incentive  to incorporated  areas  to  become                 
  single site districts.  Mr. Guiley  stated that the proposed                 
  legislation  establishes  the match  based  on an  amount of                 
  local  wealth available for each community served.  The size                 
  of the school district is immaterial.  The legislation would                 
  not serve  as an  incentive for  a district  to incorporate.                 
  The  advantage  to  a  district to  be  incorporated  is the                 
  ability to  provide more  to  the students  above the  basic                 
  needs.  An  REAA is  restricted to funding  only the  "basic                 
  need".                                                                       
                                                                               
  Co-Chair MacLean echoed Representative Martin's concerns and                 
  referenced the handout  provided by  him.  [Attachment  #2].                 
  Co-Chair MacLean  asked  if  the fish  tax  and  the  forest                 
  receipts had  been taken  into consideration  of the  wealth                 
  factor in  the  determination for  the match  section.   Mr.                 
  Guiley stated that the federal forest receipts and fish  tax                 
  was not  considered.  The  calculations were based  upon the                 
  taxable value of  real and personal property  located within                 
  the district boundaries.   The ability to come with  a match                 
  can originate from any other source other than  grant funds.                 
                                                                               
                                                                               
  Representative Hoffman asked under what circumstances  could                 
  a  commissioner  deny a  waiver  if  a REAA  were  unable to                 
  provide their participating share.  Mr. Guiley replied those                 
  situations would  be arise when a REAA would have sufficient                 
  fund balance in a capital project fund designated for future                 
  construction and  then that  district wished  to hold  those                 
                                                                               
                               10                                              
                                                                               
                                                                               
  funds for use  ofa different  project.  Discussion  followed                 
  regarding the  qualifications of  receiving a  waiver.   Mr.                 
  Guiley added  that  with the  passage of  the legislation  a                 
  "waiver"  will not  be easy to  get.   Traditionally, REAA's                 
  have set  aside money to  help with major  projects, knowing                 
  that they  would not be  funded through the  capital funding                 
  process.  HB 82 and HB 83 would provide a vehicle from which                 
  to fund major projects.                                                      
                                                                               
  Representative  Hoffman  asked  the   Department's  position                 
  should the language on Page 3,  Line 2 be changed from "may"                 
  to  "shall".   Mr.  Guiley  advised that  the determiniation                 
  would no  longer continue  to be  at the  discretion of  the                 
  commissioner.                                                                
                                                                               
  Co-Chair  Larson stressed that  the Department  of Education                 
  can not  establish what  is equitable  in determining  major                 
  school  construction.    He  noted  that  he  supported  the                 
  legislation.                                                                 
                                                                               
  HB 82 was HELD in Committee for further discussion.                          
                                                                               
  HOUSE BILL 83                                                                
                                                                               
       "An  Act  making  appropriations  for construction  and                 
       major  maintenance of  schools;  and  providing for  an                 
       effective date."                                                        
                                                                               
  Mr. Guiley provided the Committee a sectional analysis of CS                 
  HB 83 (HES).                                                                 
                                                                               
       Section   1   appropriates   $109,441,663    from   the                 
       constitutional  budget  reserve   fund  to  the  school                 
       construction  grant  fund  and  allocates  payments  to                 
       school  districts   and   REAA's   subject   to   grant                 
       conditions.                                                             
                                                                               
       Section   2   appropriates    $41,819,937   from    the                 
       constitutional  budget   reserve  fund  to   the  major                 
       maintenance grant fund and allocates payments to school                 
       districts and REAA's subject to grant conditions.                       
                                                                               
       Section 3  provides that  appropriations under the  Act                 
       are  for  capital  projects  and  are  subject  to  the                 
       provisions  of  AS  37.25.020  relating  to  unexpended                 
       balances of appropriations for capital projects.                        
                                                                               
       Section 4 provides  for an effective date  for sections                 
       one and three of the Act.                                               
                                                                               
       Section 5 provides that section two takes effect on the                 
       effective date of  an Act creating a  major maintenance                 
                                                                               
                               11                                              
                                                                               
                                                                               
       grant fund in AS 14.11.                                                 
                                                                               
  HB 83 was HELD in Committee for further consideration.                       
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 9:45 A.M.                                           
                                                                               
                                                                               
                               12                                              

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