2001-03-01                     Senate Journal                      Page 0557
SB 124                                                                                            
SENATE BILL NO. 124 BY THE SENATE 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 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 and Social                            
Services, Judiciary and Finance Committees.                                                         
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, Department of Revenue                                                           
 Fiscal Note No. 2, Department of Revenue                                                           
                                                                                                    
Governor's transmittal letter dated February 28:                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2001-03-01                     Senate Journal                      Page 0558
Dear President Halford:                                                                             
                                                                                                    
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                               
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