CHAIRMAN RIEGER brought SB 59 (SCHOOL CONSTRUCTION & MAINTENANCE GRANTS) and SB 60 (APPROP:SCHOOL CONSTRUCTION GRANT FUND) before the committee. He directed attention to a draft CSSB 59(HES) which makes two major changes. The first change limits the maximum matching grant that could be required for a district to 30 percent. For REAA's the maximum match is 3.8 percent. The second change is that it suspends these grant provisions for appropriations made in calendar year 1993. Addressing SB 60, CHAIRMAN RIEGER said the bill, as introduced by the Governor, had $150 million appropriated from the earnings reserve account. He said it was his intention to create a work draft which does not appropriate that amount from the earnings reserve account, but appropriates it from the general fund and leaves the source of funding question up to the Senate Finance Committee. Also, allocate that $150 million to each area of the state at the rate of $7.5 million per Senate district, totaling $150 million. SENATOR ELLIS asked if there had been any discussions with the Governor on these suggested changes, and he raised concern of a possible veto by the Governor whereby school projects would go by the wayside. CHAIRMAN RIEGER responded that he wants to have all of the possible modes of getting school construction funded up to the Finance Committee as soon as possible so they can make the final decision. As he perceives it, there are two basic approaches: one is a debt reimbursement and the other is a straight grant approach. He doesn't think it is really within the purview of the HESS Committee to decide which way to finance the schools, but rather a Finance Committee decision. Number 404 DUANE GUILEY, Department of Education, said in discussing the capital legislation with the commissioner, the state board and representatives from the Governor's office, one of the primary goals of all parties concerned was establishing a local match for projects, so it is something that is important to all parties concerned in relation to this bill. Also, the Governor's office has expressed a desire to have a multi- year plan. CHAIRMAN RIEGER stated SB 59 and SB 60 would be held over until the following day at which time they would be back before the committee along with SB 180, SB 181 and SJR 30.