Legislature(1993 - 1994)
05/02/1994 01:45 PM House FIN
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* first hearing in first committee of referral
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HOUSE BILL NO. 466
"An Act authorizing the issuance of bonds by the Alaska
Housing Finance Corporation to pay for the costs of
repair and rehabilitation of student housing facilities
of the University of Alaska; authorizing the issuance
of bonds by the University of Alaska to pay for the
costs of repair and rehabilitation of facilities of the
University of Alaska; amending powers of the Alaska
Housing Finance Corporation; amending the definition of
"public building"; relating to the Alaska debt
retirement fund; and providing for an effective date."
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LINDA REXWINKLE, FISCAL ANALYST, OFFICE OF BUDGET AND
MANAGEMENT provided members with a schedule of the state of
Alaska state general obligation bonds annual debt service
(copy on file). She reviewed the schedule.
Co-Chair Larson noted that the legislation would increase
the annual ratio of facility repair and rehabilitation and
student housing repair and rehabilitation debt service.
Co-Chair MacLean provided members with AMENDMENT 1 (copy on
file). Amendment 1 would delete "$30.0 million dollars and
insert "$15.0 million dollars on page 2, line 23 and delete
"$45.0 million dollars and insert "$30.0 million dollars on
page 3, line 7.
Representative Therriault MOVED to AMEND Amendment 1 to
delete the deletion of "$30.0 million dollars and insert
"$15.0 million dollars on page 2, line 23. He noted that
the amendment to the amendment would reinstate the deferred
maintenance for university housing.
WENDY REDMOND, VICE PRESIDENT, UNIVERSITY OF ALASKA spoke in
support of the amendment to the amendment. She indicated
that the University would prefer that any reductions be made
to the facility repair rehabilitation bonding. She
emphasized that addressing the health, life and safety
problems in the dormitory is the University's first
priority. She clarified that classroom renovation or
completion is not covered by the bonding issuance.
ALISON ELGEE, DIRECTOR OF BUDGET, UNIVERSITY OF ALASKA
explained that only deferred maintenance will be financed by
the bond issuance. Ms. Redmond added that a list of
individual projects has been submitted for the entire $150
million dollar bond issuance. In response to questions by
Representative Navarre, Ms Redmond noted that the projects
are part of the Board of Regents program and planning
priority. She reiterated that funding for deferred
maintenance would not be switched to any building completion
project.
There being no objection, the amendment to the amendment was
adopted.
Representatives Therriault and Navarre spoke against the
amendment. They pointed to the need for funding of the
university's deferred maintenance requirements.
Co-Chair MacLean WITHDREW AMENDMENT 1. There being no
OBJECTION, it was so ordered.
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Representative Martin provided members with AMENDMENT 2
(copy on file). He MOVED to ADOPT AMENDMENT 2. He
explained that amendment 2 would provide for bonding of new
student housing facilities at the University of Alaska,
Southeast and Anchorage campuses.
Co-Chair MacLean OBJECTED to the amendment. She noted that
the amendment would allow new construction.
In response to a question by Representative Navarre, Ms.
Redmond agreed that both projects are high priorities for
new housing. She clarified that deferred maintenance is the
highest priority.
(Tape Change, HFC 94-152, Side 2)
Representative Martin noted that there are over 400 students
requesting housing in Anchorage. He noted that the housing
needs are for students that reside 25 miles or more from the
campus. He stressed the need for on campus housing.
Ms. Elgee explained that the University of Alaska is
required to acquire legislative authorization for bonding
which exceeds $1 million dollars in annual debt service.
Representative Therriault asserted that student housing fees
would not cover debt service costs. Ms. Redmond explained
that student fees can cover maintenance and operations but
not the debt service.
Ms. Elgee added that debt service at the Fairbanks campus
has resulted in a lack of funding for deferred maintenance.
Representative Therriault noted that legislation pending in
the House would allow municipalities to offer tax credits
for private dormitories. Discussion pursued in regards to
upgrading of the Fairbanks campus housing.
Representative Navarre observed that new housing is not the
highest priority of the University.
Ms. Redmond observed that there are only 380 beds available
on the Anchorage campus which services over 30,000 students.
She stated that the need for housing at the Anchorage campus
is extreme. She pointed to the number of rural students
attending the Anchorage campus. Co-Chair MacLean noted that
there is a high withdrawal rate for rural students at the
Anchorage campus.
A roll call vote was taken on the MOTION to adopt AMENDMENT
2.
IN FAVOR: Hoffman, Martin, Grussendorf, Brown
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OPPOSED: Navarre, Parnell, Therriault, Foster, Hanley,
Larson, MacLean
The MOTION FAILED (4-7).
Representative Navarre MOVED to report CSHB 466 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note. Representative Martin OBJECTED.
A roll call vote was taken on the MOTION
IN FAVOR: Navarre, Parnell, Therriault, Brown, Foster,
Grussendorf, Hanley, Hoffman, MacLean
OPPOSED: Martin, Larson
The MOTION PASSED (9-2).
HB 466 was reported out of Committee with "no
recommendation" and with three zero fiscal notes, one by the
University of Alaska, dated 3/9/94, and one by the Office of
the Governor, dated 2/11/94, and one by the Department of
Revenue, dated 2/11/94.
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