Legislature(2023 - 2024)DAVIS 106
03/18/2024 08:00 AM House EDUCATION
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| Audio | Topic |
|---|---|
| Start | |
| HB236 | |
| SB99 | |
| Confirmation Hearing(s): | |
| University of Alaska Board of Regents | |
| Professional Teaching Practices Commission | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 236 | TELECONFERENCED | |
| += | SB 99 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
HB 236-UA MAJOR MAINTEN. MODERNIZATION FUND
8:02:28 AM
CO-CHAIR RUFFRIDGE announced that the first order of business
would be HOUSE BILL NO. 236, "An Act relating to the duties of
the Board of Regents of the University of Alaska; establishing
the University of Alaska major maintenance and modernization
fund; repealing the University of Alaska building fund; and
providing for an effective date."
8:02:50 AM
REPRESENTATIVE WILL STAPP, Alaska State Legislature, as prime
sponsor, introduced HB 236. He provided a brief introduction
and explained that his staff would give a recap of the bill and
what it does.
8:03:08 AM
PAUL MENKE, Staff, Representative Will Stapp, Alaska State
Legislature, presented HB 236 on behalf of Representative Stapp,
prime sponsor. He said the bill would be a fund in the budget
dedicated to renovating and maintaining existing buildings in
the University of Alaska System (UA).
8:03:44 AM
CO-CHAIR RUFFRIDGE welcomed invited testifiers.
8:04:18 AM
RALPH SEEKINS, Chair, Board of Regents, University of Alaska
(UA) System, gave invited testimony in support of HB 236 and
briefly provided his background. He reported that the
university has gone from a deferred maintenance situation to a
critical maintenance situation. He said 40 percent of the
buildings that the state owns are on university campuses and UA
is looking to preserve and modernize those buildings without
unnecessary upgrades. He thanked the committee for the
consideration and offered to stay online to answer questions.
8:08:02 AM
PAT PITNEY, President, University of Alaska System, gave invited
testimony in support of HB 236 and thanked Representative Stapp
for introducing the bill. She explained that UA has prioritized
deferred maintenance as the highest capital priority. She said
UA's annual need is over $60 million to keep up with maintenance
and it is asking for only half of that. She related that UA has
many mechanisms to stay accountable with the legislature and a
planned approach to address deferred maintenance. There are
many aged facilities including some built in the 1960s that need
structural changes.
8:12:15 AM
REPRESENTATIVE HIMSCHOOT asked how other universities deal with
deferred maintenance.
MS. PITNEY replied that most universities have a budget
structure and consistent approaches to deferred maintenance, and
she provided brief examples of other states. She further noted
that the last time UA's deferred maintenance did not grow was in
the period of 2010 to 2015 when there was a consistent $35
million of deferred maintenance funding provided to the
university.
8:13:48 AM
REPRESENTATIVE PRAX communicated that he tried to understand
whether $30 million for the maintenance and modernization fund
is in addition to what UA allocated in its operating budget.
MS. PITNEY confirmed that was correct and that the $30 million
was for preventative maintenance.
REPRESENTATIVE PRAX offered his belief that there is a
difference between the activity of maintaining and that of
modernizing. He asked whether there was a number that just
focused on maintaining, such as an aforementioned ventilation
system. He questioned the amount of $35 million being enough to
catch up on deferred maintenance and inquired how much would be
needed annually to keep up maintenance in general.
MS. PITNEY replied that if UA were modeling to facility
standards, the investment on the facility would be about $66
million annually on top of current maintenance and operations of
the facilities. The $66 million is requested in UA's capital
budget, she noted.
8:19:49 AM
CO-CHAIR ALLARD asked Representative Stapp if the University of
Alaska Anchorage (UAA) would build more buildings as part of its
modernization.
REPRESENTATIVE STAPP responded that the number one project is
the replacement of the centralized heating system at the UAA
campus. The priorities and project list included in the bill
can clearly articulate those things, he added.
CO-CHAIR ALLARD asked Ms. Pitney if UA is looking at building
more buildings with a focus on modernizing.
MS. PITNEY replied yes, there are modernization facilities that
are priorities for UA, and UA is very much focused on non-state
funding for those facilities. Public and private partnerships
are crucial to new facility projects, she added.
CO-CHAIR ALLARD asked whether overall enrollment had gone up or
down.
MS. PITNEY confirmed that UA was in the third semester of
enrollment increases. Most encouraging, she said, is the
category of first-time freshmen, which grew 16 percent last
fall.
8:24:17 AM
REPRESENTATIVE PRAX asked whether UA has a published high-level
maintenance strategy.
MS. PITNEY replied that UA has its preventative maintenance
strategy in policy.
REPRESENTATIVE PRAX expressed interest in looking into the
strategy so the legislature has a better appreciation for the
need for maintaining what UA has and, in addition, how decisions
are made regarding a building's useful life with no point of
maintaining it further.
8:26:53 AM
REPRESENTATIVE STORY asked how UA takes into account those
Alaskans visiting campuses and deciding whether to attend in
state, noting that learning environments matter when people are
choosing institutions, and she questioned whether this is
considered when putting together the deferred maintenance list.
MS. PITNEY replied absolutely, and that was part of the reason
dorms were a priority. The view given to students on their
visits is extremely important as well as program opportunities.
Priorities are based on functionality and age but also a
commitment to a return on investment from enrollment, she
explained.
8:28:57 AM
CO-CHAIR RUFFRIDGE opened public testimony on HB 236. After
ascertaining no one wished to testify, he closed public
testimony.
CO-CHAIR RUFFRIDGE announced his intention to hold HB 236 for
future amendments.
8:30:18 AM
REPRESENTATIVE PRAX commented that in the legislative process,
[legislators] should make a concerted effort to get the bill
through both the House and the Senate than to get it perfect, as
it is fairly important, he opined.
8:31:01 AM
REPRESENTATIVE STAPP thanked committee members for their time
and remarked that deferred maintenance may not be as exciting as
ribbon cuttings, but it is important long term.
8:31:33 AM
The committee took an at-ease from 8:31 a.m. to 8:35 a.m.
8:35:43 AM
REPRESENTATIVE PRAX moved to report HB 236 out of committee with
individual recommendations and the accompanying fiscal notes.
8:36:21 AM
CO-CHAIR ALLARD objected to express her concern that because the
legislature failed to address the issue years ago, the numbers
have "crawled."
CO-CHAIR ALLARD then removed her objection. There being no
further objection, HB 236 was reported out of the House
Education Standing Committee.