04/30/2002 03:08 PM House FIN

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. 528                                                                                                            
                                                                                                                                
     "An Act relating to programs of state reimbursement for                                                                    
     debt payments for certain capital projects; and                                                                            
     providing for an effective date."                                                                                          
                                                                                                                                
Co-Chair  Mulder  reviewed  House Bill  528,  which  provides                                                                   
state reimbursement  to local entities for debt  incurred for                                                                   
schools   and   projects   that    contribute   to   economic                                                                   
development.   The  legislation   would   replace  the   debt                                                                   
reimbursement  package  (adopted   two  years  earlier)  with                                                                   
Unalaska,  Akutan, Chignik  and False  Pass and expansion  of                                                                   
the Port  of Anchorage. The  total cost would  be $70,405,000                                                                   
dollars.  The legislation  also  contains  funding for  power                                                                   
projects,  which  have  been  previously  leveraged  and  are                                                                   
therefore not eligible for GO  bonding. The legislation would                                                                   
provide   debt  reimbursement   for   the  following   energy                                                                   
projects: Nyman Combined Cycle  Cogeneration Plant in Kodiak;                                                                   
the   Power  Creek   Hydropower  Project   in  Cordova;   the                                                                   
Cogeneration  Project in Valdez;  and the Southeast  Intertie                                                                   
(Swan  Lake to  Lake Tyee).  Debt  reimbursement would  allow                                                                   
Cordova Electric  Cooperative  to end its  draw on  the power                                                                   
cost equalization program.                                                                                                      
                                                                                                                                
Representative John Davies referred  to section 1, line 7. He                                                                   
noted  that  the  authorization  would be  increased  to  $10                                                                   
million dollars,  but the school only anticipates  a need for                                                                   
$7 - $8 million dollars.                                                                                                        
                                                                                                                                
Co-Chair Mulder noted that the  combined state/local share is                                                                   
$10 million  dollars. The state  share for the  Ambler School                                                                   
is $7 million dollars.                                                                                                          
                                                                                                                                
Representative Davies referred to section 2 on page 4.                                                                          
                                                                                                                                
TAPE HFC 02 - 98, Side B                                                                                                      
                                                                                                                                
Co-Chair  Mulder clarified  that  Valdez and  Nome are  still                                                                   
authorized;  these two  communities are  still going  forward                                                                   
with debt reimbursement.                                                                                                        
                                                                                                                                
Representative  Croft  questioned if  the  Akutan Small  Boat                                                                   
Harbor request is  $3 or $4 million dollars.  Co-Chair Mulder                                                                   
noted that  it was  originally submitted at  $3 but  that the                                                                   
backup  indicated  that  the  amount  needed  is  $4  million                                                                   
dollars.                                                                                                                        
                                                                                                                                
Co-Chair Mulder  clarified that the Anchorage  port needs $14                                                                   
- $16 million dollars.                                                                                                          
                                                                                                                                
HB  528  was   heard  and  HELD  in  Committee   for  further                                                                   
consideration.