Legislature(2001 - 2002)
2001-03-09 House Journal
Full Journal pdf2001-03-09 House Journal Page 0518 HB 169 HOUSE BILL NO. 169 by the House Rules Committee by request of the Governor, entitled: "An Act relating to the financing of construction and major maintenance of public school facilities; authorizing the commissioner of revenue to sell the right to receive a portion of the anticipated revenue from a certain tobacco litigation settlement 2001-03-09 House Journal Page 0519 to the Northern Tobacco Securitization Corporation; relating to the deposit of certain anticipated revenue from a certain tobacco litigation settlement; authorizing the issuance of bonds by the Northern Tobacco Securitization Corporation with proceeds to finance public school construction and major maintenance; and providing for an effective date." was read the first time and referred to the Health, Education & Social Services and Finance Committees. The following fiscal note(s) apply: 1. Fiscal, Dept. of Revenue 2. Fiscal, Dept. of Revenue The Governor's transmittal letter dated February 28, 2001, appears below: "Dear Speaker Porter: With declining general fund capital budgets, the backlog of needed school construction and major maintenance projects across our state has continued to grow. Last year we addressed a few of these needs recognizing it was just the beginning of a several-year plan. This bill I am transmitting today is the next phase in our effort to provide adequate, safe and well-maintained schools in which our children can learn. This legislation proposes a bond package addressing some $127 million in statewide school construction and major maintenance to cover the highest priorities on the current statewide list. It is the intent of this legislation that the entire list totaling some $547 million in school construction and maintenance needs be addressed within five years. This bill provides for the sale of a portion of the revenues from the settlement of the state's tobacco litigation, to the Northern Tobacco Securitization Corporation, a subsidiary corporation of the Alaska Housing Finance Corporation created under AS 18.56.086. Similar to the program the Legislature approved last year, the bill authorizes the corporation to issue revenue bonds secured by the litigation revenues 2001-03-09 House Journal Page 0520 to finance state grants for the specified school construction and major maintenance projects. Those projects are comprised of some $69 million for the first four school construction projects on the statewide priority list: Togiak, Golovin, Koyuk, and Tuluksak schools; and $58 million for the top 46 major maintenance projects on the list. We know we have needs beyond those included in this bill. However, this proposal addresses a significant portion of our existing need and provides adequate space and safe learning environments for Alaska's children. I urge your prompt and favorable action. Sincerely, /s/ Tony Knowles Governor"