04/01/2010 09:00 AM Senate FINANCE

SENATE BILL NO. 237                                                                                                           
                                                                                                                                
     "An Act extending the deadline for authorizing school                                                                      
     construction debt reimbursed by the state."                                                                                
                                                                                                                                
9:07:51 AM                                                                                                                    
Co-Chair Hoffman  proposed committee substitute,  work draft                                                                    
#26-  LS1342\C, Mischel,  3/31/10 (copy  on file).  Co-Chair                                                                    
Stedman OBJECTED.                                                                                                               
                                                                                                                                
JAY LIVEY, STAFF, CO-CHAIR  HOFFMAN, discussed the Committee                                                                    
Substitute  (CS). He  relayed  that  three proposed  changes                                                                    
exist. First,  the findings section more  closely focuses on                                                                    
the Kasayulie hearing. Secondly,  Section 2, Line 18 changes                                                                    
the  name of  the  fund created  to  the Regional  Education                                                                    
Attendance Area School  Fund, as the previous  title did not                                                                    
relate to  the text. The third  change in Section 4,  Page 8                                                                    
calls for  review of the  impact the legislation has  on the                                                                    
state's bond  rating. The  change calls for  a review  to be                                                                    
conducted five years from the effective date of the bill.                                                                       
                                                                                                                                
9:11:33 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman added  that his office is  working with the                                                                    
administration to  wordsmith the legislation. He  planned to                                                                    
discuss his concerns in the  other body. He commented on the                                                                    
Kasayulie versus  State case. He  explained that  his office                                                                    
has  worked with  the plaintiffs  and school  districts with                                                                    
much headway in the right direction.                                                                                            
                                                                                                                                
Co-Chair  Stedman WITHDREW  his  OBJECTION.  There being  NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Co-Chair Stedman stated  that a new updated  fiscal note was                                                                    
released.                                                                                                                       
                                                                                                                                
EDDY  JEANS,  DIRECTOR,   SCHOOL  FINANCES  AND  FACILITIES,                                                                    
DEPARTMENT  OF  EDUCATION  AND EARLY  DEVELOPMENT,  informed                                                                    
that the two  fiscal notes were combined. The  first part of                                                                    
the  fiscal note  estimates the  amount  of state  liability                                                                    
under the  debt reimbursement  program. He  anticipated that                                                                    
the first  year of  liability would occur  in FY13.  A three                                                                    
year average of projects  approved under the program yielded                                                                    
the  $3.7 million  estimated  state  liability beginning  in                                                                    
FY13  under the  debt reimbursement  program. He  elaborated                                                                    
that the  second portion  of the  fiscal note  addresses the                                                                    
new  funding  formula   for  regional  education  attendance                                                                    
areas.   The  estimation   is   an   annual  allocation   of                                                                    
approximately $40 million dollars.                                                                                              
                                                                                                                                
Co-Chair Stedman stated that public testimony is closed.                                                                        
                                                                                                                                
Co-Chair Hoffman MOVED to report  CS SB 237 out of Committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
SB  237 was  REPORTED  out  of Committee  with  a "do  pass"                                                                    
recommendation  and   with  new  fiscal  impact   note  from                                                                    
Department of Education and Early Development.                                                                                  
                                                                                                                                
9:15:00 AM