Legislature(2001 - 2002)
04/30/2002 03:08 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
GENERAL OBLIGATION BONDS
Co-Chair Mulder noted that there were $1.4 billion dollars
in general obligation (GO) bond requests. The attorneys
indicated that they could not be included in one ominous
bond bill. The intent was to use as few vehicles as possible
and identify consistent themes. He observed that HB 524
contains GO bonds for new schools and university
construction. House Bill 525 contains GO bonds for deferred
maintenance of public facilities. Bond debt reimbursement
was used for projects that did not fit into a GO bond
package, because they were previously leveraged [HB 528].
Representative Lancaster's energy bill [HB 175] was utilized
for the final component. House Bill 524 and HB 525 would
appear on the November general election ballot.
Co-Chair Mulder observed that projects were prioritized. The
priority lists were strictly used with one exception. In new
school construction, out of the first six schools: three
were in [Representative Kaspner's] district and three were
in Representative Foster's district. The proposed committee
substitute took the first two [in Representative Kaspner's
district] and the first two from Representative Foster's.
HOUSE BILL NO. 524
"An Act relating to the issuance of general obligation
bonds for the purpose of paying the cost of design,
construction, and maintenance of schools and state
facilities; and providing for an effective date."
Co-Chair Mulder provided members with proposed committee
substitute, work draft LS1725\C, dated 4/29/02 (copy on
file.) He observed that HB 524 contains the new construction
component of schools and learning facilities. He observed
that in order to get the bonds to pass there needs to be a
broad statewide perspective.
Finance Committee Substitute for House Bill 524 authorizes a
vote of the people on general obligation bonds issued by the
state of Alaska for the construction of educational
facilities. The proposal, totaling $149,795,595 dollars,
provides for new schools, University of Alaska projects and
a portion of a museum expansion in Anchorage. The new school
projects include facilities in Tuluksak, Akiak, Scammon Bay,
Teller and Anchorage. The University of Alaska funding
includes projects on campuses in Fairbanks, Juneau, Homer,
Valdez, Anchorage, Kenai, Sitka, Homer, and Ketchikan. The
bond question would be on the November ballot. If approved
by the voters, projects could commence early in 2003.
Representative Croft observed that the third school on the
priority list, Akiachak, was skipped. Co-Chair Mulder
explained that the intent was to balance the two districts.
Representative Croft observed that Anchorage schools, which
were ranked 48, 49, 53, and 54, were added. Co-Chair Mulder
pointed out that they were schools passed by the Anchorage
voters. He stressed the need to assure the greatest support
for passage of the bond package. The Anchorage schools are
partially funded. He observed that there was a error on the
Bartlett High School appropriation, which should be $1.9
million dollars. The Chugiak High School appropriation was
also in error and should be $3.655,728 dollars.
Representative Croft noted that Chugiak would be completely
funded, but Barlett High School would only be funded for
phase 2 and 3. He noted that parts of several schools were
being funded. Co-Chair Mulder explained that the legislation
contains the state share for projects proposed by the
Anchorage School Board and accepted by the voters.
WENDY REDMAN, VICE PRESIDENT, STATEWIDE PROGRAMS, UNIVERSITY
OF ALASKA, provided information on HB 524. She noted that
the Board approved the projects and rankings. The Fairbanks
and Anchorage classroom projects represent board-approved
phases for the facilities. The Lena Point facility was
originally $18 million dollars, which was reduced in half in
order to fit into the appropriation amount. The project was
not designed to be phased. Other projects are as they were
on the Board's priority list. She explained that pieces of
their deferred maintenance needs are contained in other
legislation. The University's top $50 million dollars in
capital requests were funded, excluding deferred
maintenance, which might show up in the capital budget bill.
She did not know where the University Center would be
funded. Delay in funding would be a problem for the Center,
which was not in any of the funding bills.
Vice-Chair Bunde questioned if the University of Alaska had
discussed local contribution for the expansions. Ms. Redman
noted that the Fairbanks campus would be contributing $30
million dollars. Overhead on the science and laboratory
facilities would also be contributed in Anchorage.
Representative Hudson questioned if the University has
dropped the joint University of Alaska Southeast and
Military and Veterans Affairs readiness facility. Ms. Redman
noted that the project is a high priority but was submitted
in the Military and Veterans Affairs budget. She stressed
that the joint use/recreational facility is a high priority
for the Alaska National Guard and University. Co-Chair
Mulder stated that he was willing to work with
Representative Hudson and the University to fund the
project.
Ms. Redman referred to the University Center, Anchorage
campus. Co-Chair Mulder observed that the University
indicated that the funding was needed earlier than later and
bonding might be problematic. The intent is to provide
funding through another vehicle.
Representative Croft clarified that Tuluksak is in
Representative Morgan's district.
Representative Hudson referred to section 5. There is a $5
million dollar appropriation in the Department of Community
and Economic Development for an educational museum facility
design. He observed that the state has the opportunity to
acquire several acres of land from the Alaska Electric Light
and Power Company (AELP). The cost would be $1.9 million
dollars, which covers the land acquisition and $500 thousand
dollars to design a multi-facility that would be an
expansion of the state museum and archives; both of which
are in tough shape. He emphasized that the purchase must
occur in the current year.
HB 524 was heard and HELD in Committee for further
consideration.
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