2000-02-11                     Senate Journal                      Page 2282
SB 270                                                                       
SENATE BILL NO. 270 BY THE SENATE RULES COMMITTEE                              
BY REQUEST OF THE GOVERNOR, entitled:                                          
                                                                               
An Act relating to return of contributed capital, or                          
payment of a dividend, to the state by the Alaska                              
Student Loan Corporation; and providing for an                                 
effective date.                                                                
                                                                               
was read the first time and referred to the State Affairs and Finance          
Committees.                                                                    
                                                                               
Zero fiscal note published today from Department of Education and              
Early Development.                                                             
                                                                               
Governors transmittal letter dated February 10:                                
                                                                               
Dear President Pearce:                                                         
                                                                               
Since 1995, the Alaska Student Loan Corporation has transformed                
the loan program from an operation posting a $7 million annual loss            
to one with a $6.3 million net income. The exceptional success of              
the corporation means it is now able to pay dividends back to the              
state as a return of the capital contributed in 1987 when the                  
corporation was created.                                                       

2000-02-11                     Senate Journal                      Page 2283
SB 270                                                                       
This bill I transmit today provides for the corporation to issue annual        
payments to the state in years when the corporate net income is at             
least $2 million. The payment would be between 10 and 35 percent               
of the net income, subject to provisions of applicable bond                    
indentures of the corporation.                                                 
                                                                               
A fitting use for the dividend income would be to fund the Alaska              
Scholars Program. This scholarship program at the University of                
Alaska rewards the top high school students in our state and offers            
them an opportunity to continue their higher education. The program            
is estimated to reach a cost of about $3.6 million and will need               
general fund support by fiscal year 2002.                                      
                                                                               
Alaska students have reaped great benefits from the state's student            
loan program. Now that the program can repay some of that                      
investment to the state, we should continue to invest it right back            
into the education of our young adults. I urge your prompt and                 
favorable action on this measure to receive payments from the                  
Alaska Student Loan Corporation and the intent to use these receipts           
to fund the Alaska Scholars Program.                                           
                                                                               
					Sincerely,                                                                
					/s/                                                                       
					Tony Knowles                                                              
					Governor