03/30/2010 09:00 AM Senate FINANCE

SENATE BILL NO. 237                                                                                                           
                                                                                                                                
     "An Act extending the deadline for authorizing school                                                                      
     construction debt reimbursed by the state."                                                                                
                                                                                                                                
9:55:51 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman explained  the intent to bring  SB 237 back                                                                    
to  the committee  for  the second  time  and reopen  public                                                                    
testimony by invitation only.                                                                                                   
                                                                                                                                
SENATOR  KEVIN  MEYER  stated  that  he  had  no  additional                                                                    
comments and supported the amendment by Co-Chair Hoffman.                                                                       
                                                                                                                                
Co-Chair Stedman  reported that the request  for a breakdown                                                                    
by the  department of school construction  funding for urban                                                                    
and Regional  Education Attendance Area (REAA)  schools over                                                                    
the last twenty  years was provided as  requested during the                                                                    
bill's  last hearing.  He asked  Senator Meyer  for a  brief                                                                    
synopsis of the bill.                                                                                                           
                                                                                                                                
Senator Meyer explained the  legislation. He elaborated that                                                                    
SB 237  extends the debt reimbursement  program. The program                                                                    
is typically renewed  for two year periods  and is currently                                                                    
nearing sunset. The  program is very important  to the urban                                                                    
schools.                                                                                                                        
                                                                                                                                
Co-Chair Stedman  mentioned one fiscal note  from Department                                                                    
of Education  and Early Development (DEED)  showing the cost                                                                    
of debt  reimbursement beginning  in FY13 at  $3,700,000. He                                                                    
observed an additional fiscal note  just delivered from DEED                                                                    
reflecting changes in the CS,  but he preferred to review it                                                                    
prior to passing it out to committee members.                                                                                   
                                                                                                                                
Co-Chair Hoffman noted  that a ruling by  the third judicial                                                                    
district  stated  that  the  system   in  the  current  debt                                                                    
reimbursement system  was unconstitutional  due to  the lack                                                                    
of  focus  on  rural  Alaska.   He  explained  that  he  was                                                                    
searching for a  funding mechanism for both  urban and rural                                                                    
Alaska.                                                                                                                         
                                                                                                                                
9:59:57 AM                                                                                                                    
                                                                                                                                
CARL ROSE, EXECUTIVE DIRECTOR,  ASSOCIATION OF ALASKA SCHOOL                                                                    
BOARDS, testified  unanimous support  of the  legislation by                                                                    
the  Association of  Alaska School  Boards. He  recalled the                                                                    
General  Obligation  (GO) bond  that  cleaned  up the  major                                                                    
maintenance list eight  years ago which lacked  a formula to                                                                    
treat the grant  and bonding programs with  equity. He noted                                                                    
the large  imbalance regarding the  needs of both  urban and                                                                    
rural  Alaska.  The  bill  provides  a  great  beginning  in                                                                    
providing a formula for both the grant and bonded debt.                                                                         
                                                                                                                                
CAROL  COMEAU,  SUPERINTENDENT, ANCHORAGE  SCHOOL  DISTRICT,                                                                    
testified  in support  of the  legislation. She  believed it                                                                    
fair to have rural Alaska  receive funding as she recognized                                                                    
their needs for  new construction as well as  the backlog of                                                                    
deferred  maintenance.  She  applauded  the  Senate  Finance                                                                    
Committee for bringing this forward.                                                                                            
                                                                                                                                
10:03:46 AM                                                                                                                   
                                                                                                                                
Co-Chair  Hoffman  noted the  dialog  of  a sunset  for  the                                                                    
legislation. He  stated that  he was  not interested  in the                                                                    
sunset.                                                                                                                         
                                                                                                                                
Ms. Comeau  declared strong support  for the  elimination of                                                                    
any  sunset date  for both  the debt  reimbursement and  the                                                                    
proposal for the rural funding.                                                                                                 
                                                                                                                                
10:04:37 AM                                                                                                                   
                                                                                                                                
MARY FRANCIS,  EXECUTIVE DIRECTOR, ALASKA COUNCIL  OF SCHOOL                                                                    
ADMINISTRATORS testified in support  of the legislation. She                                                                    
noted that  the bill allows  a process to address  the needs                                                                    
of schools for  those unable to bond  locally. She suggested                                                                    
an audit for school buildings  statewide to allow for better                                                                    
understanding  of the  maintenance  and school  construction                                                                    
needs.                                                                                                                          
                                                                                                                                
10:06:10 AM                                                                                                                   
                                                                                                                                
Co-Chair Hoffman appreciated the testimony on the                                                                               
contentious issue.                                                                                                              
                                                                                                                                
SB 237 was HEARD and HELD in Committee for further                                                                              
consideration.