SENATE BILL NO. 237 "An Act extending the deadline for authorizing school construction debt reimbursed by the state." 9:55:51 AM Co-Chair Stedman explained the intent to bring SB 237 back to the committee for the second time and reopen public testimony by invitation only. SENATOR KEVIN MEYER stated that he had no additional comments and supported the amendment by Co-Chair Hoffman. Co-Chair Stedman reported that the request for a breakdown by the department of school construction funding for urban and Regional Education Attendance Area (REAA) schools over the last twenty years was provided as requested during the bill's last hearing. He asked Senator Meyer for a brief synopsis of the bill. Senator Meyer explained the legislation. He elaborated that SB 237 extends the debt reimbursement program. The program is typically renewed for two year periods and is currently nearing sunset. The program is very important to the urban schools. Co-Chair Stedman mentioned one fiscal note from Department of Education and Early Development (DEED) showing the cost of debt reimbursement beginning in FY13 at $3,700,000. He observed an additional fiscal note just delivered from DEED reflecting changes in the CS, but he preferred to review it prior to passing it out to committee members. Co-Chair Hoffman noted that a ruling by the third judicial district stated that the system in the current debt reimbursement system was unconstitutional due to the lack of focus on rural Alaska. He explained that he was searching for a funding mechanism for both urban and rural Alaska. 9:59:57 AM CARL ROSE, EXECUTIVE DIRECTOR, ASSOCIATION OF ALASKA SCHOOL BOARDS, testified unanimous support of the legislation by the Association of Alaska School Boards. He recalled the General Obligation (GO) bond that cleaned up the major maintenance list eight years ago which lacked a formula to treat the grant and bonding programs with equity. He noted the large imbalance regarding the needs of both urban and rural Alaska. The bill provides a great beginning in providing a formula for both the grant and bonded debt. CAROL COMEAU, SUPERINTENDENT, ANCHORAGE SCHOOL DISTRICT, testified in support of the legislation. She believed it fair to have rural Alaska receive funding as she recognized their needs for new construction as well as the backlog of deferred maintenance. She applauded the Senate Finance Committee for bringing this forward. 10:03:46 AM Co-Chair Hoffman noted the dialog of a sunset for the legislation. He stated that he was not interested in the sunset. Ms. Comeau declared strong support for the elimination of any sunset date for both the debt reimbursement and the proposal for the rural funding. 10:04:37 AM MARY FRANCIS, EXECUTIVE DIRECTOR, ALASKA COUNCIL OF SCHOOL ADMINISTRATORS testified in support of the legislation. She noted that the bill allows a process to address the needs of schools for those unable to bond locally. She suggested an audit for school buildings statewide to allow for better understanding of the maintenance and school construction needs. 10:06:10 AM Co-Chair Hoffman appreciated the testimony on the contentious issue. SB 237 was HEARD and HELD in Committee for further consideration.