Legislature(1999 - 2000)
2000-07-14 House Journal
Full Journal pdf2000-07-14 House Journal Page 3895 HB 281 The following letter, dated June 8, 2000, was received: "Dear Speaker Porter: On this date I have signed the following bill passed by the second session of the Twenty-first Alaska State Legislature and am transmitting the engrossed and enrolled copies to the Lieutenant Governor's Office for permanent filing: SENATE CS FOR CS FOR HOUSE BILL NO. 281(FIN) "An Act relating to the financing of construction of public school facilities, facilities for the University of Alaska, and facilities for ports and harbors; authorizing the commissioner of revenue to sell the right to receive a portion of the anticipated revenue from a certain tobacco litigation settlement to the Alaska Housing Finance Corporation; relating to the deposit of certain anticipated revenue from a certain tobacco litigation settlement; authorizing the issuance of bonds by the Alaska Housing Finance Corporation with proceeds to finance public school construction, facilities for the University of Alaska, public housing facilities of the Alaska Housing Finance Corporation, and facilities for ports and harbors; providing for the creation of subsidiary corporations of the Alaska Housing Finance Corporation for the purpose of financing or facilitating the financing of public school construction, facilities for the University of Alaska, and facilities for ports and harbors; and providing for an effective date." Chapter No. 130, SLA 2000 ¦Effective Date: July 1, 2000á I am signing this bill because it authorizes many vitally needed projects throughout the state and uses appropriate and available bonding mechanisms to pay for them. However, there are several issues not addressed in the bill, or that are raised by the approach used in the bill, which merit mention and which will require additional action in the future. 2000-07-14 House Journal Page 3896 HB 281 Most of the projects cited by the state Board of Education as critically needed new school construction or major maintenance are not funded in this bill. I had proposed a funding method to address the 40 top- ranked new school construction projects and all of the major maintenance projects throughout the state. This bill authorizes funding for only the first five new school construction projects plus the 24th ranked project and skips through the major maintenance projects, ignoring most of the list, particularly in rural Alaska. In the case of projects authorized for bond debt reimbursement, there appears to be no rational basis for the amounts allocated to various districts. Some districts which still have an allocation for debt reimbursement from two years ago are authorized further reimbursement for no specified or prioritized projects. Others, notably Juneau, were not authorized sufficient reimbursement to cover projects already ranked by the board and approved by voters. There are also problems with the specific approaches used in the bill. Although some districts were authorized debt reimbursement retroactively for projects already approved by voters, there was no language in the bill to exempt those districts from the approval and ballot disclosure requirements of current law. Without further legislation, a new vote for bond approval will be required in those districts. Some maintenance projects were also authorized for debt reimbursement which may not be eligible for bonding under current statutory definitions. In addition, the authorization for debt reimbursement for local ports and harbors could present financial problems for small municipalities, despite the promised 100% state reimbursement. Thus, there are a number of issues that must be addressed next year. I will once again pledge my best efforts to work with the legislature in completing the important work we have started in this legislation. Sincerely, /s/ Tony Knowles Governor"