04/30/2001 04:55 PM Senate HES

                    SB  94-EDUCATION FUNDING                                                                                
                                                                                                                                
CHAIRWOMAN GREEN  announced the final  order of business  was SSSB
.                                                                                                                             
                                                                                                                                
SENATOR  TAYLOR,  bill sponsor,  said  the  dollar amount  in  the                                                              
substitute is  very similar to the  original bill. They  wanted to                                                              
raise the  formula by $210.00, which  would have generated  $57 to                                                              
$60  million  but  because  the bill  was  misread  and  therefore                                                              
misunderstood, it  was not successful.  Therefore, he  decided the                                                              
$58 million  could be  used to  repair every  school in  the state                                                              
according to  the list  provided by  the Department of  Education.                                                              
This  does not  include  any  new school  construction.  Forty-six                                                              
schools  are  listed that  would  benefit  from its  passage.  The                                                              
tobacco settlement is part of the  funding base and he knows there                                                              
is  controversy concerning  the funding  mechanism.  There are  at                                                              
least two mechanisms coming from the House.                                                                                     
                                                                                                                                
CHAIRWOMAN GREEN  commented she has  no letters either  in support                                                              
or against the bill.                                                                                                            
                                                                                                                                
SENATOR  TAYLOR said  that  is because  the  bill  is fairly  new.                                                              
Anyone having  read SB 94  would be familiar  with the  intent. He                                                              
has   received    enthusiastic   support   from    educators   and                                                              
administrators.                                                                                                                 
                                                                                                                                
CHAIRWOMAN  GREEN asked  for  the general  response  to using  the                                                              
tobacco settlement money.                                                                                                       
                                                                                                                                
SENATOR TAYLOR  said there could  be better ways to  finance this,                                                              
he's not necessarily tied to that method.                                                                                       
                                                                                                                                
SENATOR WARD reported he asked for  a printout from the settlement                                                              
and the  tax and learned  there is a  little over $75  million. Of                                                              
that,  almost $2  million  has been  spent  on  campaigns to  stop                                                              
smoking  and $73  million on  government. Therefore,  this is  "in                                                              
stride with  that effort of those  people that wanted  children to                                                              
stop smoking."                                                                                                                  
                                                                                                                                
CHAIRWOMAN  GREEN  asked  if  the   money  was  from  the  tobacco                                                              
litigation.                                                                                                                     
                                                                                                                                
SENATOR TAYLOR said it was.                                                                                                     
CHAIRWOMAN  GREEN  commented  that  the  money is  headed  to  the                                                              
general fund.                                                                                                                   
                                                                                                                                
SENATOR WARD  said, "We and the  Governor have certainly  spent it                                                              
like general fund money… We've spent  $73 of the $75 on government                                                              
and from  one that voted against  the cigarette tax for  this very                                                              
reason, I hope  we keep this in  mind when the next sin  tax rolls                                                              
around."                                                                                                                        
                                                                                                                                
SENATOR WILKEN  thanked Senator Taylor  then pointed out  that the                                                              
deferred  maintenance  list includes  about  98 projects  totaling                                                              
about $108.8  million, so the  money would address  about one-half                                                              
the list.                                                                                                                       
                                                                                                                                
He  then   expressed  frustration   with  those  Rural   Education                                                              
Attendance Areas (REAA) that are  unwilling to help fund their own                                                              
educational  needs  but are  more  than  willing to  accept  "free                                                              
government". He  said he would continue  to vocalize his  views in                                                              
this area.                                                                                                                      
                                                                                                                                
CHAIRWOMAN  GREEN  asked  for  other  testimony  and  received  no                                                              
response. She asked for the will of the committee.                                                                              
                                                                                                                                
SENATOR WILKEN moved  SSSB 94 and fiscal note  from committee with                                                              
individual recommendations.                                                                                                     
                                                                                                                                
There being no objection, the bill moved from committee.