Legislature(2017 - 2018)CAPITOL 106
03/10/2017 08:00 AM House EDUCATION
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| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing(s): || University of Alaska Board of Regents | |
| HB64 | |
| HB135 | |
| HB137 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 64 | TELECONFERENCED | |
| *+ | HB 135 | TELECONFERENCED | |
| *+ | HB 137 | TELECONFERENCED | |
HB 135-SCHOOL CONSTRUCTION GRANT PROGRAM
8:36:58 AM
CHAIR DRUMMOND announced that the next order of business would
be HOUSE BILL NO. 135, "An Act relating to school district
participation in the school construction grant program."
8:37:17 AM
REPRESENTATIVE DEAN WESTLAKE, Alaska State Legislature,
introduced HB 135 paraphrasing from a prepared statement, which
read as follows [original punctuation provided]:
HB 135 will allow the Commissioner of the Department
of Education to grant time extensions to school
districts raising their percentage share of project
costs appropriated through the "Educational facilities
maintenance and construction fund" (as outlined under
AS 14.11.008 "School district participation in grant
program" for appropriations made under AS 37.05.560).
Currently, school districts are required to raise the
percentage share of the total project cost within 3-
years of appropriation approval.
However, since the adoption of the 3-year time
constraint in 1993, multiple projects have required
more time to raise their required percentage share.
The more recent examples of projects that have
required more time include, but not limited to,
projects within the Yukon Flats School District,
Northwest Arctic Borough School District, Yupiit
School District and the Kenai Peninsula Borough School
District.
According to the Department of Education & Early
Development, the 3-year time lapse is appropriate for
about 95% of approved projects. However, there's
about 5% of the projects that could utilize a time
extension when faced with extenuating circumstances
outside of the school districts' control.
The Kivalina Replacement School project is one example
of why a provision for extensions is needed.
In FY2015 the State appropriated $48,958,120 for the
project State Share funding, and the participating
share amounted to $12,239,530, for a total EED
Recommended amount to $61,197,650.
However, the grant agreement has not yet been executed
for reasons beyond the control of both the Borough and
District.
First, for FY 2016 a moratorium was placed on approval
of the grant pending legislative consideration of the
balance of funding [does it need further explanation
on the moratorium?].
Secondarily, the project cannot begin until the access
road is constructed as a separate project. The road
development is proceeding in conjunction with DOT/PF,
but it is not scheduled to be completed before the
three-year deadline expires.
Without an approved grant agreement, it is difficult
to apply for other grant funds that could be used
towards the local share.
Furthermore, if the Borough and School District cannot
apply for an extension, there is potential that a
critically needed school project might be forced to
forfeit the previously appropriated State funds when
all that is needed is more time to secure additional
matching sources.
In this case, if HB 135 is passed, the Northwest
Arctic Borough could apply in writing to the
Commissioner to request an extension. If the
Commissioner decided that the project demonstrated
good cause to for the requested extension, then the
Commissioner could grant one.
REPRESENTATIVE WESTLAKE named projects that fall within the 5
percent category, which are: Tuluksak School improvement,
Hoonah major maintenance, Arctic Village soil remediation,
Kivalina replacement school, and Kachemak Selo new K-12 school
facility.
8:41:18 AM
REPRESENTATIVE JOHNSTON asked what the current balance is for
the outstanding 5 percent, and how many of the schools were part
of a judicial decision [Kasayulie v. State of Alaska].
REPRESENTATIVE WESTLAKE said he could provide further
information regarding the outstanding 5 percent, and he
clarified Kivalina School was part of a lawsuit settlement.
REPRESENTATIVE JOHNSTON inquired as to whether the Kivalina
School project includes infrastructure [access] to the school as
well as the school building.
REPRESENTATIVE WESTLAKE advised a separate project is the
infrastructure road being handled by the Department of
Transportation & Public Facilities (DOT&PF).
REPRESENTATIVE KOPP surmised that the access road that is needed
has delayed the replacement of Kivalina School.
REPRESENTATIVE WESTLAKE concurred and said the road must be
completed prior to the school being rebuilt, and the road
project is outside of the school district's control.
CHAIR DRUMMOND questioned whether construction can begin on a
school prior to having the local share in hand.
REPRESENTATIVE WESTLAKE deferred comment to the mayor of the
Northwest Arctic Borough.
8:43:56 AM
ANNMARIE O'BRIEN, PhD, Superintendent, Northwest Arctic Borough
School Board (NWABSD), stated support for HB 135, paraphrasing
from a prepared statement, which read as follows [original
punctuation provided]:
The Northwest Arctic Borough School District
wholeheartedly endorses House Bill 135, a bill
addressing the participation in the school
construction grant program allowing the Commissioner
of Education to grant an extension of the time
limitation for the identification of the required
local participating share of grant funding.
Currently, the statutes require that the local match
be identified within three years of the approval of
the legislative appropriation of grant funding. There
is no provision for the consideration of exceptional
circumstances that warrant additional time to secure
the match. This bill recognizes that such situations
may occur from time to time and allows Boroughs and
Districts to justify and petition the Commissioner for
an extension. Without such an extension, there is a
potential that a critically needed school project
might be forced to forfeit the State appropriation
when all that is needed is more time to secure
additional local funding sources.
The existing State regulations for administration of
the school construction grant program protect the
State's interests and assure the local match is
provided. The Department releases grant funding to
recipients only after specific milestone conditions
are met. The payments are a percentage of only the
State share of the project amount and in addition, 5%
of the state share is withheld until the source of the
local match is identified. There is not a danger of
the State over reimbursing a project.
Not only is the State facing restricted funding, so
are local governments. Incorporating some flexibility
into the provision for local match will allow local
governments more time to fund their share of the cost
of a greatly needed school facility upgrade.
Admittedly, the Northwest Arctic has a project that
would benefit from this bill and the Kivalina
Replacement School project is a perfect example of why
a provision for exceptions is needed. In April 2015,
the legislature appropriated partial grant funding for
the Kivalina Replacement School. At that time the
clock started ticking to secure the local share.
However, the grant agreement has not yet been executed
for several reasons beyond the control of the Borough
and District. For FY 2016 a moratorium was placed on
approval of the grant pending legislative
consideration of the balance of funding.
Another complication is construction of the project
cannot begin until an access road is constructed as a
separate project. The road development is proceeding
in conjunction with DOT/PF [Department of
Transportation & Public Facilities], but it is not
scheduled to be complete before the three-year
deadline for the match expires. Without an approved
grant agreement, it is difficult to apply for other
grant funds that could be used as part of the local
share.
House Bill 135 will delegate to the Department
discretion in extraordinary circumstances to allow
projects such as Kivalina Replacement School to move
forward without the potential of having to forfeit
appropriated funding, and to continue managing risk to
the State and local entities and support the
improvement of educational conditions for the children
of Alaska.
8:48:42 AM
REPRESENTATIVE JOHNSTON noted Northwest Arctic Borough School
District (NWABSD) has been undergoing a methodical rebuilding of
the school facilities begun in the 1990s or 2000, and asked if
this is the final rebuild project.
DR. O'BRIEN replied yes.
REPRESENTATIVE JOHNSTON asked for the percentage of the average
local participation match funding.
DR. O'BRIEN replied the borough-required match is 20 percent.
CHAIR DRUMMOND expressed concern that because of the delay, the
project will cost significantly more, and thus the school
project, as well as school programs, may suffer.
DR. O'BRIEN said it's hard to consider the full effect of
inflation on a project that has been delayed. However, the
needs of the students attending Kivalina School are paramount to
funding issues. The school is in poor condition and the
district makes the best effort with the existing facility. She
pointed out as the delay continues, energy efficiencies and new
construction methods are becoming available.
REPRESENTATIVE JOHNSTON asked for the student population at
Kivalina School, and for the number of students who graduated in
2016.
DR. O'BRIEN answered 160 students are enrolled in grades K-12,
and deferred response on the number of graduates.
CHAIR DRUMMOND said the legislature has been concerned about
Kivalina School for at least five years and asked for an update
on the current project schedule.
DR. O'BRIEN said the completion of the road is indeterminate,
but once construction of the road is complete, school
construction can begin, and that is expected to be completed
within two years; with the road construction estimated at three
years, a five-year timeframe is anticipated in the best
circumstances.
8:53:55 AM
MIKE NAVARRE, Mayor, Kenai Peninsula Borough, said as currently
drafted, HB 135 doesn't directly affect the Kenai Peninsula
Borough at this time, but he expressed support for the bill's
intent. Mayor Navarre recalled last year the borough received a
legislative grant in the amount of $10 million to build a school
in Kachemak Selo, which is a small community located at the
terminus of East End Road. Access to the school is not legal
access because of switchbacks and the steep grade of the road,
thus the borough is exploring options on where to build the
school. The bill would allow the commissioner, for good cause,
to provide some flexibility [in the school construction grant
program] for issues such as looking at school population trends.
Mayor Navarre said additional flexibility for good cause makes
good sense. Regarding the percentage of the match, which is 35
percent for the Kenai Peninsula Borough, he cautioned that due
to the economic contraction and the fiscal situation in Alaska,
the amount of the match is a challenge for local governments to
achieve. He noted the borough seeks to find a successful model
that can be applied for all local governments with remote
schools throughout the state. Mayor Navarre related in 1991
there was a recommendation to relocate Kivalina because the
village was being eroded by the ocean and the river; Kivalina is
the best demonstrated case that HB 135 may prevent a local
government from rushing to find the funds to preserve a grant,
instead of finding the most rational and fiscally responsible
solutions.
8:57:39 AM
REPRESENTATIVE JOHNSTON asked the mayor if, given a choice, the
borough would prefer the $10 million designated for the school,
for education, or for other capital projects.
MR. NAVARRE responded that the reality of budget priorities must
be faced. He described the existing student housing in Kachemak
Selo as deficient and inadequate, and reluctantly suggested that
for this community, correspondence education may be the best
option, or perhaps a change to the grant in order to build a
multi-purpose building to also serve as a school. He
acknowledged funding education is a dilemma for the borough and
the state and expressed his support for education.
CHAIR DRUMMOND asked if Kachemak Selo is located at the head of
Kachemak Bay.
MR. NAVARRE said yes, adding the village is situated at the end
of East End Road and across tidal flats. The village was built
in a difficult area due to its topography and soil conditions;
in fact, to build a road would cost about $15 million.
CHAIR DRUMMOND surmised that busing is not an option.
MR. NAVARRE concurred and said a gondola was considered but that
option was also ruled out - there are no easy options.
9:02:28 AM
CHAIR DRUMMOND, after ascertaining no one else wished to
testify, closed public testimony on HB 135.
[HB 135 was held over.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| CS HB64.pdf |
HEDC 3/10/2017 8:00:00 AM |
HB 64 |
| HB64 Fiscal Note LEG-COU-O2-23-17.pdf |
HEDC 3/10/2017 8:00:00 AM |
HB 64 |
| HB64 Letter of Support Council on Disabilities.pdf |
HEDC 3/10/2017 8:00:00 AM |
HB 64 |
| HB135A.PDF |
HEDC 3/10/2017 8:00:00 AM |
HB 135 |
| HB135 Sponsor Statement.pdf |
HEDC 3/10/2017 8:00:00 AM |
HB 135 |
| HB 135 Fiscal Note EED 3-03-17.pdf |
HEDC 3/10/2017 8:00:00 AM |
HB 135 |
| HB 135 Support Letter NWAB 2.24.17.PDF |
HEDC 3/10/2017 8:00:00 AM |
HB 135 |
| HB 135 Support Letter NWABSD 2.24.17.pdf |
HEDC 3/10/2017 8:00:00 AM |
HB 135 |
| HB 135 Participating Share Issue Examples.pdf |
HEDC 3/10/2017 8:00:00 AM |
HB 135 |
| HB137A.PDF |
HEDC 3/10/2017 8:00:00 AM |
HB 137 |
| HB137 Sponsor.pdf |
HEDC 3/10/2017 8:00:00 AM |
HB 137 |
| HB137 Supporting Document Brown.pdf |
HEDC 3/10/2017 8:00:00 AM |
HB 137 |
| HB137 Supporting Document Alaska Public Media.pdf |
HEDC 3/10/2017 8:00:00 AM |
HB 137 |
| HB 137 Fiscal Note EED 3-03-17.pdf |
HEDC 3/10/2017 8:00:00 AM |
HB 137 |
| HB137 Letter of Support Kawerak.pdf |
HEDC 3/10/2017 8:00:00 AM |
HB 137 |