Legislature(2003 - 2004)
04/26/2004 08:45 AM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 507
An Act providing for and relating to the issuance of
general obligation bonds for the purpose of paying the
cost of design, construction, and major maintenance of
educational facilities; and providing for an effective
date.
REPRESENTATIVE MIKE HAWKER, SPONSOR, commented that the bill
was introduced following consultation with the University of
Alaska, recognizing the needs for continued design
construction and expansion for statewide facilities. The
nd
bill is modeled after the 22 Legislature education bond
bill. As structured, HB 507 is a general obligation (G.O.)
bond and would require voter approval. Getting any G.O.
bond on a ballot could be problematic unless there is a
larger package of fiscal legislation. The bill as drafted
contains only a list of University facilities with the
largest item being the integrated science facility in
Anchorage. There are other facilities included.
Representative Hawker pointed out that when originally
introduced, the amounts proposed were brought forward by the
administration of the University. He suggested that part of
the intent of introducing HB 507, is contemplating statewide
K-12 needs.
Co-Chair Williams stated that the bill would be placed into
a Subcommittee consisting of Representative John Harris as
the Chair and with members Representative Hawker and
Representative Croft.
DARREL HARGRAVES, SUPERINTENDANT, YUKON FLATS SCHOOLS, noted
that HB 507 is the only bill with a title that could
incorporate some regular K-12 projects. He stressed that
the Capital Improvement Project (CIP) list prepared by the
Department of Education & Early Development includes
projects that have been scrutinized. He stressed that
these are needed projects.
DOROTHY ADAMS, PRESIDENT FOR YUKON FLATS SCHOOL DISTRICT,
stated that the Arctic Village School is number #5 on the
CIP list. It is a former Bureau of Indian Affairs (BIA)
facility and judged to be inadequate and unsafe for
students. There is heavy oil saturation. The furnace is a
fire hazard due to oil leaks. She noted that the last bond
issue provided sufficient funds to do an architecture design
and it would be best to proceed at this time. The project
would require $182 thousand dollars from the district and
the district is prepared to make that contribution. Ms.
Adams requested that the school's CIP list should be added
to HB 507.
Co-Chair Harris asked if they were aware of SB 283, dealing
with school funding and if they had applied pressure on
their Senator to support that legislation. He pointed out
that there has been a proposal to put in the top ten
projects into that bill. Ms. Adams responded that they have
spoken to their senator and anyone else who would listen.
Representative Hawker clarified that there is both the major
maintenance list and the capital construction list. He
pointed out that their needs are listed in the CIP list.
Mr. Hargraves agreed and noted that he would also support
the major maintenance list, as it is important because it
keeps projects off the CIP list.
CARL ROSE, EXECUTIVE DIRECTOR, ASSOCIATION OF ALASKA SCHOOL
BOARDS, JUNEAU, stated that the Association is considering
how to accomplish tasks that need to be addressed. He put
forward that a couple years ago, they were part of a G.O.
Bond, however, they no longer have the ability to
appropriate for the needs for the State but do have the
ability to bond out over a period of time, taking advantage
of low interest rates. That option appears to be the only
way to address many of the capital and major maintenance
needs. When putting a G.O. bond together, passing the
electorate must be considered. A major appeal package must
be shaped.
Mr. Rose identified projects, noting one on the list where
the well system has failed; in Copper River, the result from
the serious leakage is now dry rot; another project on the
list is a roof system that is in need of serious repair
where the roof is now sagging. That project is listed as #3
with life safety at hand. He urged that each critical issue
on the list be addressed.
Mr. Rose commented that the State must determine how to
fashion a G.O. bond so the critical issues are addressed.
He pointed out the document included in the files, which
educates people regarding the critical needs statewide.
(Copy on File). He advised that the Association supports
the concept of G.O. bonds, as it would be a viable way to
address critical needs. Public schools are the State's
investment and must be protected. Major maintenance must be
addressed in an appropriate fashion to reduce the long-term
need for construction.
Mr. Rose noted that there are a number of items in play at
this time having the Senate dealing with the major
maintenance list. He noted that there are other options
available, however, the end result is, if no action is taken
this year, the problems will become even more exacerbated
and dangerous. He acknowledged that this is also tied to
the fiscal plan and that a G.O. bond is most likely the only
way to address these needs. He offered to work with the
Subcommittee.
HB 507 was HELD in Committee for further consideration.
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