Legislature(2001 - 2002)
02/05/2001 01:32 PM Senate HES
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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
SB 2-MUNICIPAL SCHOOL BOND REIMBURSEMENT
MS. MARY JACKSON, aide to Senator Torgerson, sponsor of SB 2,
explained the measure as follows. HB 281, which passed last year,
was a bonding package that included a number of projects, including
school bonds. The timeframe for that bonding package is from 1998
to 2004. SB 2 predominantly affects the Anchorage School District.
SB 2 exempts Anchorage from the requirement to adhere to some of
the ballot proposition language currently in statute and corrects
an unintended glitch in HB 281.
CHAIR GREEN asked if the Mat-Su Borough ever fell within the
troublesome part of HB 281.
MS. JACKSON replied Mat-Su was included in HB 281 and was the
reason the bill was retroactive to 1998. Her understanding is that
the Mat-Su Borough has taken full advantage of all of the bonds so
it does not have to come back under this program. She explained
that Anchorage put a vote before the voters for 100 percent
reimbursement, instead of a 70-30 split.
CHAIR GREEN asked if all other language is the same.
MS. JACKSON said it is. She pointed out the first revision to the
law is on page 4 and that Section 1 is in existing law.
CHAIR GREEN asked what cost is associated with SB 2.
MS. JACKSON said the fiscal note is zero because it applies to a
previous bond.
CHAIR GREEN took public testimony.
MS. DEBBIE OSSIANDER, Anchorage School Board, stated strong support
for SB 2. She explained that technical language problems prohibited
Anchorage from taking full advantage of HB 281. Anchorage voters
approved $77.9 million worth of school bonds. At the time no one
knew whether any state reimbursement for those bonds was a
possibility. Passage of SB 2 will enable Anchorage to follow suit
with other districts and take advantage of previously apportioned
money.
CHAIR GREEN asked Ms. Ossiander if Anchorage was included in the
conversation about HB 281 last year.
MS. OSSIANDER said it was and that Anchorage lobbied for debt
reimbursement. Unfortunately, at the time, Anchorage did not know
what percentage of debt reimbursement was possible. At the advice
of bond counsel, language was put forth to the voters saying that
Anchorage would attempt to go for debt reimbursement but, if not
available, 100 percent would be paid locally.
SENATOR WARD asked how much money is involved.
MR. EDDY JEANS, school finance manager for the Department of
Education and Early Development (DOEED), said SB 2 only affects the
Anchorage School District and possibly one project in the Northwest
Arctic Borough. Under HB 281, the legislature passed a lengthy
debt reimbursement list. Unfortunately, this will continue to be a
problem in the future as municipalities continue to get voter
approval for projects when the debt reimbursement program has no
authorization for those projects. DOEED will not review and
approve projects for a debt reimbursement program if there is no
authorization. That is exactly what happened in Anchorage. There
was no authorization on the books but Anchorage decided to go to
the voters for approval. Key elements were not on the ballot that
were required by the legislation, such as the amount of
reimbursement from the State, the estimated total cost of the
project, the estimated interest, and the estimated annual cost of
operation and maintenance. DOEED will not review ballot language
if it does not have authorization on the books so Anchorage got
ahead of DOEED.
CHAIR GREEN asked if the Mat-Su Borough came back to DOEED after it
held its election.
MR. JEANS said it did.
CHAIR GREEN asked if it was assumed that Anchorage would qualify
when HB 281 was enacted.
MR. JEANS said that he could make that assurance.
SENATOR DAVIS asked Ms. Ossiander for the projects those bonds will
cover.
MS. OSSIANDER replied SB 2 applies to the bonds that were passed on
April 4, 2000. The projects include:
· Phase 1 Bartlett High School
· Phase 2 and 3 Chugiak High School
· Phase 1 East High School
· Phase 1 Service High School
· Phase 1 Wendler Middle School
· The Denali Elementary replacement project
· District wide renewal/replacement ADA code grades, roof
replacements, Girdwood roof replacement, electrical upgrades
and traffic safety work.
CHAIR GREEN noted an absence of any reference to charter schools.
MS. OSSIANDER said that is true.
CHAIR GREEN asked what it would take to get a charter school on the
list.
MS. OSSIANDER said it would take a bit of a philosophical shift for
the Board. Currently, the Board assumes that charter schools would
deal with their own building needs.
There being no further testimony on SB 2, SENATOR LEMAN moved SB 2
from committee with individual recommendations and a zero fiscal
note, if there is one. There being no objection, the motion
carried.
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