05/07/1994 01:50 PM Senate FIN

                                                                               
  HOUSE BILL NO. 466 am                                                        
                                                                               
       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.                   
                                                                               
  Co-chair Pearce  directed that  HB 466am  be brought  on for                 
  discussion.   ALISON ELGEE,  Budget Director,  University of                 
  Alaska,  came  before  committee.   She  explained  that the                 
  legislation  was introduced by the Governor on behalf of the                 
  University.  It  contains $75 million in  bond authorization                 
  to   deal  with  one-half  of  the  University's  identified                 
  deferred  maintenance.   A  $30  million  bond authorization                 
  through  the  Alaska Housing  Finance  Corporation addresses                 
  maintenance in  student  dormitories and  housing,  and  $45                 
  millions issued under the University  will provide for other                 
  deferred maintenance projects.  Ms.  Elgee next referenced a                 
  listing of projects to  be covered by the funding  and noted                 
  the companion Senate bill (SB 304).                                          
                                                                               
  Senator Kelly directed attention to Amendment No. 1 which he                 
  explained would  provide  funding for  construction  of  new                 
  student  housing facilities  at  the  University of  Alaska,                 
  Anchorage and  University of Alaska,  Southeast.   Inclusion                 
  would require a title change.   Senator Kelly then MOVED for                 
  adoption of Amendment No. 1.  Co-chair Pearce OBJECTED.  She                 
  explained that  the  committee  already  passed  legislation                 
  allowing  the  University  to  "get  private  financing  for                 
  student housing."  The House removed provisions contained in                 
  the  amendment  from  the proposed  bill.    Co-chair Pearce                 
  voiced concern that reinsertion of those provisions, at this                 
  time, would "kill the bill."  She expressed a preference for                 
  a parking  garage at the  Anchorage campus.   Senator Rieger                 
  inquired concerning need  for construction at University  of                 
  Alaska,  Southeast.    Alison Elgee  explained  that  the $6                 
  million would purchase an additional 129 beds.   The project                 
  received planning  and design  money in  the current  fiscal                 
  year.  It has  been designed and is ready  for construction.                 
  Student housing at  both Anchorage and Juneau  is completely                 
  occupied, and  there  is a  waiting list.   Co-chair  Pearce                 
  called  for a show of hands on  adoption of Amendment No. 1.                 
  The motion failed  on a vote of 2 to 4,  and Amendment No. 1                 
  was NOT ADOPTED.                                                             
                                                                               
  Senator   Rieger   acknowledged   a   substantial   deferred                 
  maintenance  problem at  the University  but voiced  concern                 
                                                                               
                                                                               
  over  use  of  reserves  and  issuance of  additional  debt.                 
  Senator Kelly pointed to the  fact that Alaska's latest bond                 
  issue was  rated AA  by Wall  Street.   That indicates  that                 
  Alaska is a good investment risk  because of the state's low                 
  debt.   He further  attested to  deferred maintenance  needs                 
  within the University  and voiced his belief  that the board                 
  of regents has  been irresponsible over  the past decade  in                 
  using funding for other things.                                              
                                                                               
  Co-chair Pearce queried members on  disposition of the bill.                 
  Senator Kelly MOVED  that HB 466am pass  from committee with                 
  individual recommendations.  OBJECTION was  voiced.  The Co-                 
  chair called for a  show of hands.  The motion  carried on a                 
  vote of 4 to 3, and  HB 466am was REPORTED OUT of  committee                 
  with  zero fiscal  notes from  the Office  of the  Governor,                 
  University  of  Alaska,  and Dept.  of  Revenue.   Co-chairs                 
  Pearce and  Frank and Senators  Kelly and  Sharp signed  the                 
  committee report with  a "do pass" recommendation.   Senator                 
  Rieger signed  "no recommendation."   Senator  Jacko signed,                 
  "do not pass."   Senator Kerttula signed, "do not  pass, use                 
  GFs."                                                                        
                                                                               
  RECESS                                                                       
                                                                               
  Co-chair  Pearce  acknowledged  the  impending Senate  floor                 
  session  and the  fact  that remaining  bills on  the agenda                 
  would  require "some testimony."  She then directed that the                 
  meeting be recessed and  reconvened later in the day  at the                 
  call of the chair.  The meeting was recessed at 2:20 p.m.