Legislature(1997 - 1998)
1998-01-26 Senate Journal
Full Journal pdf1998-01-26 Senate Journal Page 2298 SB 258 SENATE BILL NO. 258 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: An Act relating to the states participation in the financing of construction and major maintenance of public school facilities; giving notice of and approving the entry into, and the issuance of certificates of participation in, lease-financing agreements for public school facilities; and providing an effective date. was read the first time and referred to the Health, Education and Social Services and Finance Committees. Fiscal note published today from Department of Revenue. Indeterminate fiscal note published today from Department of Education. Zero fiscal note published today from Department of Administration. Governors transmittal letter dated January 23, 1998: Dear President Miller: Part of my Quality Schools Initiative is the provision of adequate, safe and well-maintained schools in which our children can learn. Unfortunately, with declining general fund capital budgets, the backlog of needed school construction and major maintenance projects across our state has continued to grow. Today I am 1998-01-26 Senate Journal Page 2299 SB 258 introducing legislation that provides a plan and a funding mechanism for addressing the entire current statewide prioritized list of $744 million of capital projects over the next 10 years. The Public School Facilities Financing Program authorizes the issuance of certificates of participation a specialized type of revenue bond which has recently been issued by the state at very favorable interest rates. These bonds will be repaid by revenues from cigarette taxes deposited into the designated School Fund. In this way, up to $100 million can be leveraged annually over the next six years. After that, general funds will be utilized that are currently budgeted for the local school debt reimbursement program as local school bonds are retired. The program will balance the needs of rural and urban school districts, with an emphasis in the early years on critical major maintenance projects. Annual funding is designed to meet critical projects quickly yet maintain a level that maximizes the use of in- state workers and companies. This program will provide a predictable source of funds and certainty in project scheduling for local districts. As in the current grant program, a local matching share would be required from 35% to 2% of total project costs depending on the tax base of the district. However, unlike the current school debt reimbursement program, school districts would be required only to come up with their match share and would not have to bond for the entire project amount. Education is a top priority for most Alaskans and this Administration. To address the many challenges facing our schools and to advance quality in the education of our children, I have introduced legislation that 1) mandates standards, comprehensive testing, and remedial actions for deficient schools; 2) provides more resources for our strapped schools; 3) revises our foundation formula 1998-01-26 Senate Journal Page 2300 SB 258 to more efficiently and equitably distribute state funds; and 4)provides adequate space and safety for students. I urge your prompt and favorable action. Sincerely, /s/ Tony Knowles Governor