03/07/1997 01:30 PM Senate CRA

                                                                               
       SSSB 37 EDUCATION FACILITIES FINANCING AUTHORITY                      
           SB 111 APPROP: EDUCATION FACILITIES FUND                          
                                                                               
  CHAIRMAN MACKIE  brought SSSB 37 and SB 111 back before the                  
 committee.                                                                    
                                                                               
  RICK CROSS , Deputy Commissioner, Department of Education, expressed         
 the department's willingness to work on the difficult problem of              
 providing a steady source of funding for capital construction and             
 major maintenance needs.                                                      
                                                                               
 Mr. Cross noted the original version of the legislation used the              
 Department of Education's capital construction and major                      
 maintenance list as the list that would be funded.  However, the              
 sponsor substitute uses a modified list, and the the department               
 strongly recommends that SSSB 37 revert to using the department's             
 capital construction and major maintenance list.  He said the Bond            
 Reimbursement & Debt Review Committee has worked hard over the last           
 several years to improve the quality of that list and to have it              
 become a list that truly reflects the capital construction and                
 major maintenance needs throughout the entire state.  He added that           
 the process is not perfect, but the pledge is there is to continue            
 to improve it.                                                                
                                                                               
 Mr. Cross also pointed out that there is a statutory process for              
 ranking projects, which, he said, is fair to both urban and bush              
 Alaska and it is the one that should be used in determining the               
 order of rank.                                                                
                                                                               
 In conclusion, Mr. Cross said this is part of a solution to the               
 problem of providing a steady source of funding for all of the                
 educational needs, which not only includes capital construction and           
 major maintenance, but includes operation expenses as well.  He               
 also expressed the department's willingness to work with the                  
 leadership in ensuring that there is a steady source of funding for           
 the operation of the state's school programs that will improve                
 quality for all children.                                                     
                                                                               
 Number 104                                                                    
                                                                               
  CHAIRMAN MACKIE  commented that the DOE list doesn't, in a lot of            
 peoples' minds, take care of needs that are in the urban areas as             
 well as the rural areas.  So he has made the decision to look to              
 some of the urban school districts and those members that represent           
 those areas to be more involved in a plan that's going to have fair           
 distribution throughout the state.  He added that's the only chance           
 that anything like this would even have of being approved.   MR.              
 CROSS  said he understands what the chairman is saying, but some of           
 the projects in the bill are not approvable under the statute.  He            
 also said that when Alaska has had boom years, urban Alaska has               
 been well represented on the list.                                            
                                                                               
 Number 140                                                                    
                                                                               
  CHAIRMAN MACKIE  stated the issue is a huge policy question, and it          
 is something that is going to be decided by the leadership and the            
 Finance Committee if and when anything like this were to be                   
 considered.  He thinks it is important to have this issue move over           
 to the Health, Education & Social Services Committee where it can             
 be considered along with other education issues.                              
                                                                               
 Number 155                                                                    
                                                                               
  SENATOR DONLEY  stated he thinks the Department of Education has             
 been very biased against urban school districts and that he                   
 completely disagrees with the testimony from the department.  He              
 said the department has been very difficult to work with over the             
 past four to six years and has been insensitive to the urban areas.           
 It's so bad that for many years the Anchorage School District                 
 hasn't even bothered to put in capital requests.  He concluded that           
 maybe the fact the department has less contested requests is                  
 because some of the urban districts have given up even trying.                
                                                                               
  SENATOR WILKEN  moved SSSB 37 and SB 111 and the attached fiscal             
 notes be passed out of committee with individual recommendations.             
  SENATOR PHILLIPS  objected.  The roll was taken with the following           
 result:  Senators Donley, Wilken and Mackie voted "Yea" and Senator           
 Phillips voted "Nay."  The Chairman stated SSSB 37 and SB 111 would           
 move to the next committee of referral with individual                        
 recommendations.