Legislature(2005 - 2006)HOUSE FINANCE 519
04/27/2005 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB67 | |
| HB13 | |
| HB257 | |
| HB53 | |
| HB218 | |
| HB279 | |
| HB243 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | HB 257 | TELECONFERENCED | |
| + | HB 243 | TELECONFERENCED | |
| + | SB 103 | TELECONFERENCED | |
| + | HB 218 | TELECONFERENCED | |
| + | HB 279 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 67 | TELECONFERENCED | |
| += | HB 13 | TELECONFERENCED | |
| += | HB 53 | TELECONFERENCED | |
HOUSE BILL NO. 13
"An Act relating to reimbursement of municipal bonds
for school construction; and providing for an effective
date."
Representative Croft WITHDREW Amendment 1, which had been
moved during .
Representative Croft MOVED to ADOPT Amendment 2:
Page 9, after line 16:
Add new section to read:
" Sec. The uncodified law of the State of Alaska is
amended by adding a new section to read:
CONTINGENT EFFECT. Section 3 of this Act shall only
apply if all school districts receive funding that is
at least the equivalent of the funding they would have
received under a base student allocation of $4919 per
student, in 2005 inflation-adjusted dollars, under the
formula of state aid to public school districts in
effect as of April 1, 2004. Inflation shall be
calculated under this section as reflected by the
United States Department of Labor's Consumer Price
Index for Anchorage, Alaska."
Representative Croft noted the amendment would hold harmless
the major urban areas: Anchorage and Fairbanks. He asserted
that these areas need to be provided for during the
transition period. The amendment would ensure that everyone
would receive some increase.
Co-Chair Meyer WITHDREW his OBJECTION to adopt Amendment 2.
There being further OBJECTION, Amendment 2 was adopted.
2:10:03 PM
Representative Joule MOVED to ADOPT Amendment 3:
Page 1, line 1, following "to":
Insert "the school construction grant fund and to"
Page 1, following line 4:
Insert new bill sections to read:
"* Section 1. AS 14.11.008(a) is amended to read:
(a) In order to receive a grant under this chapter
or an appropriation under AS 37.05.560, a district must
(1) be
(A) a rural educational attendance area;
(B) a municipal school district and, as
of June 30 of the previous fiscal year, have a
population of less than 1,000; or
(C) a municipal school district that
operates schools on a military reservation; and
(2) provide a percentage share of the project
cost, as determined under (b) or (c) of this section; a
[. A] district shall provide the required participating
share within three years after the date that the
appropriation bill funding the grant is passed by the
legislature.
* Sec. 2. AS 14.11.008(a) is repealed and reenacted to
read:
(a) In order to receive a grant under this chapter
or an appropriation under AS 37.05.560, a district must
provide a percentage share of the project cost, as
determined under (b) or (c) of this section. A district
shall provide the required participating share within
three years after the date that the appropriation bill
funding the grant is passed by the legislature.
* Sec. 3. AS 14.11.008 is amended by adding a new
subsection to read:
(g) Grant funds provided to a municipal school
district under (a)(1)(C) of this section may only be
used for the costs of school construction or major
maintenance for a school located on a military
reservation.
* Sec. 4. AS 14.11.011(a) is amended to read:
(a) A municipality that is a school district or a
regional educational attendance area eligible under
AS 14.11.008(a) may submit a request to the department
for a grant under this chapter.
* Sec. 5. AS 14.11.011(a) is repealed and reenacted to
read:
(a) A municipality that is a school district or a
regional educational attendance area may submit a
request to the department for a grant under this
chapter."
Page 1, line 5:
Delete "Section 1"
Insert "Sec. 6"
Renumber the following bill sections accordingly.
Page 9, line 17:
Delete all material.
Insert new bill sections to read:
"* Sec. 9. AS 14.11.008(g) is repealed.
* Sec. 10. The uncodified law of the State of Alaska
is amended by adding a new section to read:
CONTINGENT EFFECT. Sections 1 - 7 and 9 of this Act
take effect only if, at the first regular session or at
a special session, the Twenty-Fourth Alaska State
Legislature passes a bill appropriating an amount equal
to or more than $100,000,000 to the school construction
grant fund under AS 14.11.008 - 14.11.011, as amended
by secs. 1, 3, and 4 of this Act, and that bill becomes
law not later than October 1, 2005.
* Sec. 11. If, under sec. 10 of this Act, secs. 1, 3, 4,
6, and 7 of this Act take effect, they take effect
July 1, 2005.
* Sec. 12. If, under sec. 10 of this Act, secs. 2, 5,
and 9 of this Act take effect, they take effect July 1,
2006.
* Sec. 13. Section 8 of this Act takes effect July 1,
2005.
* Sec. 14. Section 10 of this Act takes effect
immediately under AS 01.10.070(c)."
Co-Chair Meyer OBJECTED.
Amendment 3 would restore contingency language adopted by
the House HES Committee, which was removed from the
committee Substitute adopted on April 26, 2005.
Representative Hawker asked for more information on the
contingent effect.
2:11:46 PM
REPRESENTATIVE CARL GATTO, sponsor, noted that he was not
present in the House Education and Social Services (HES)
Committee when the amendments were made.
CODY RICE, STAFF, REPRESENTATIVE CARL GATTO, explained that
the amendment was offered by Representative Cissna. The
amendment would make reauthorization of the bond debt
contingent on a direct appropriation of a minimum of $100
million appropriation for areas without the ability to issue
debt: Regional Education Attendance Area's (REAA) and school
districts under 5,000.
2:13:09 PM
Representative Joule referred to Kasayulie v. State of
Alaska, which questioned if rural areas of the state were
able to get construction projects done at the same rate as
urban schools. He noted that the amendment would be in that
spirit.
Representative Hawker related his reluctance to authorize
additional funding and stressed the need to hold the line on
the budget. He felt that areas with bonding capacity would
be held hostage to a commitment on another appropriation
bill. He noted that there is a school construction bill. He
stated that he would support the amendment if there were an
identifiable fund source and questioned if SB 155 would
satisfy the $100 million requirement [for rural support].
2:15:38 PM
Representative Joule did not know if SB 155 would meet the
requirements. He noted that SB 155 goes down the major
maintenance list, but does not address new school
construction. House Bill 13 would address new school
construction.
Representative Hawker felt that SB 155 would satisfy the
intent [of the amendment]. Representative Joule pointed out
that there is no certainty about SB 155.
Representative Croft referred to Representative Hawker's use
of the word "hostage" and the battle between the two
concepts rural vs. urban.
2:19:52 PM
Representative Gatto spoke in opposition to Amendment 3. He
felt that HB 13 should stand alone and stressed that the
intent is to put new schools in places where there are none.
He spoke against tacking on other construction lists. He
reiterated that there are areas that need schools. He argued
against adoption of the amendment and recommended it be
placed in separate legislation.
2:22:22 PM
Co-Chair Meyer noted that the bill came forth as a
continuation of a match.
Representative Hawker defended his use of the term
"hostage". He pointed out that there is $141 million in
projects on the major maintenance list. He noted that the
issue should be addressed and spoke against Amendment 3.
2:24:00 PM
Representative Croft maintained that statewide need would
not be met without the amendment. He stressed that the
problems of school construction is not that simple. He
asserted that rural Alaska only gets schools built if they
get together with urban projects and pointed out that
Alaskans had voted for similar language. He felt that it
would be inappropriate to proceed with urban school
construction without provisions for rural construction. He
maintained that the legislation, without the amendment,
would be a "slap in the face" of the Kasayulie case. He
spoke in favor of adopting Amendment 3 because it would
provide some new construction in rural Alaska.
2:27:31 PM
Representative Gatto referred to the 70/30 split. He
acknowledged that the only communities that only urban
communities have applied, but stressed that any community
could apply. He felt that the legislation would satisfy the
requirements.
Mr. Rice addressed a legal opinion regarding Kasayulie v.
State of Alaska. He pointed out that the case has not been
decided and noted that any appropriation to urban districts
is contingent on a vote of those districts and legislative
appropriation. He added that a direct appropriation is
always within the purview of the legislature. In addition,
the 2002 provision went before the voters. The current
legislation would not go before the voters. He referred to
SB 155 and noted that the potential implications have not
been addressed.
2:29:59 PM
Representative Joule spoke in support of the amendment and
noted that it would be appropriate to merge the bills. He
stressed that there is an opportunity to fund rural school
construction.
2:31:14 PM
Representative Kelly questioned the rural participation.
2:31:59 PM
EDDY JEANS, DIRECTOR, EDUCATION SUPPORT SERVICES, DEPARTMENT
OF EDUCATION AND EARLY DEVELOPMENT, explained that the
participating share for a REAA is 2 percent.
Representative Foster observed that Nome does not get 2
percent. Mr. Jeans explained that there are REAA's and
municipal school districts. There is a graduated scale for
municipal school district grant programs based on property
wealth per child.
Representative Croft added that the percentage is on a
sliding scale. Mr. Jeans noted that the sliding scale for
municipalities is 5 - 35 percent. Regional Education
Attendance Area's are at 2 percent.
2:33:59 PM
Co-Chair Meyer maintained his OBJECTION.
A roll call vote was taken on the motion to adopt Amendment
3.
IN FAVOR: Moses, Weyhrauch, Croft, Foster, Joule
OPPOSED: Hawker, Holm, Kelly, Chenault, Meyer
The MOTION FAILED (5-5).
2:35:34 PM
Representative Hawker MOVED to ADOPT Amendment 4:
Page 7, line 15 through page 9, line 16
Delete all material
Renumber following sections accordingly
Co-Chair Meyer OBJECTED for discussion purposes.
Representative Hawker explained that the amendment would
delete the mechanism for the district cost differential. He
felt that the legislation was an inappropriate vehicle and
spoke in support of keeping a clean bill.
2:36:43 PM
Co-Chair Chenault spoke against Amendment 4. He stated that
the two studies were not conclusive. He acknowledged that
problems remained, but emphasized that delay would only hurt
students. All the studies demonstrated need, even if there
is no agreement over the level of need. The bill is a
compromise, phased in over 4 years, which helps out the
school districts and forces everyone to admit that there is
a problem in order to find a remedy. He spoke passionately
about his school district's efficiency. He opined that short
funding has made them efficient, but they can't go any
farther. Rural Alaska only recently had to make the same
cuts. He said the problem is the cost differential and
stressed that he was trying to do what is best for kids
around the state.
2:41:27 PM
Representative Hawker observed that the legislative drafters
would conform the amendment. He addressed the fiscal notes,
which show a $20 million increase for each of the next four
years. He pointed out that the cost would be $80 million by
FY09. He argued for being judicious.
2:44:06 PM
Co-Chair Meyer WITHDREW his objection. Co-Chair Chenault
maintained his objection.
A roll call vote was taken on the motion.
IN FAVOR: Hawker, Meyer
OPPOSED: Weyhrauch, Croft, Foster, Holm, Joule, Kelly,
Moses, Chenault
The MOTION FAILED (2-8).
2:45:41 PM
Co-Chair Chenault spoke in support for the bill.
2:46:24 PM
GRAYSON CARLYLE, STUDENT, DZ MIDDLE SCHOOL, spoke in support
of HB 13. He referred to district cost factors and the
Institute of Social and Economic Research (ISER) research.
He spoke in support of the new costs factors, which he felt
were better than the current ones. He stressed the need to
take steps forward to improve school systems.
Representative Foster MOVED to report CSHB 13 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CSHB 13 (FIN) was REPORTED out of Committee with a "do pass"
recommendation and with a new fiscal impact by the
Department of Education and Early Development, and with
indeterminate fiscal note #1 by the Department of Education
and Early Development, and with a new indeterminate fiscal
note by the Department of Health and Social Services
2:50:42 PM
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