Legislature(2009 - 2010)BELTZ 105 (TSBldg)
02/01/2010 08:00 AM Senate EDUCATION
| Audio | Topic |
|---|---|
| Start | |
| SB237 | |
| SB109 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 237 | TELECONFERENCED | |
| = | SB 109 | ||
SB 237-SCHOOL CONSTRUCTION DEBT REIMBURSEMENT
CO-CHAIR THOMAS announced consideration of SB 237, sponsored by
the Education Committee.
8:06:33 AM
CO-CHAIR MEYER stated that SB 237 is a housekeeping measure
extending the sunset on the school construction debt
reimbursement program for three years, from November 30, 2010 to
November 30, 2013. The state of Alaska school bond debt
reimbursement is open to any municipality that has the capacity
to bond, and is an important partnership between the local
communities and the state. It allows the projects on the
Department of Education and Early Development's approved list to
be reimbursed up to 70 percent. Local governments share in the
cost of construction projects which they might not be able to do
without state matching funds.
He said it is difficult to say for sure how much it is going to
cost the state because it depends upon the local municipalities'
ability to get school bonds passed, but a spreadsheet in the
committee members' packets provides a history of education debt
reimbursements from fiscal year 1976 through 2009.
In closing, he observed that this has been a very successful
program and the sunset has been extended many times.
8:09:06 AM
SAM S. KITO III, P.E., Technical Engineer and Architect,
Facilities Engineer, Department of Education and Early
Development (DEED), Juneau, Alaska, said he administers approval
for debt projects under the grant debt reimbursement program. He
explained that the program before the committee provides for two
levels of reimbursement for school districts that have the
ability to issue bonds. The 70-percent reimbursement program is
for school districts that are building facilities that fall
within the department's space guidelines. If a school district
has a project that does not meet the department's space
guidelines, it can still bond for the project at a 60 percent
reimbursement level.
He said the current program was authorized originally under HB
13, extended under HB 373 and has been going on for about six
years. Under that program the DEED has authorized a total of
approximately $300 million worth of projects at both 70 and 60
percent.
MR. KITO said the fiscal note reflects an anticipated increase
in the debt service. He provided the members with a graph
detailing the legislature's payment on debt service for all of
the debt programs that have been in place; the total debt
service includes the projects on that graph as well as those
authorized under HB 13 and HB 373.
8:11:28 AM
SENATOR OLSON asked what might be brought up in opposition to
this bill.
MR. KITO responded that the debt program is only available to
districts that have access to municipal bonding capability. Some
districts do not, such as the Regional Education Attendance
Areas (REAA) and smaller municipal school districts that don't
have a large enough tax base to take advantage of the debt
program.
SENATOR OLSON asked what provisions are being made for the REAA
and smaller districts.
MR. KITO said he does not know specifically, but does know that
the Department of Education and Early Development has been
working with the governor's office to try and address the issue
of school construction projects on the department's school
construction grant list.
8:13:11 AM
SENATOR DAVIS moved to report SB 237 out of committee with
individual recommendations and attached fiscal note(s). There
being no objection, SB 237 moved from committee.
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