Legislature(2005 - 2006)HOUSE FINANCE 519
04/06/2006 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB307 | |
| HB493 | |
| HCR30 | |
| HB105 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 488 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HCR 30 | TELECONFERENCED | |
| += | HB 307 | TELECONFERENCED | |
| += | HB 493 | TELECONFERENCED | |
| += | HB 105 | TELECONFERENCED | |
2:39:30 PM HOUSE BILL NO. 493 An Act relating to reimbursement of municipal bonds for school construction. Co-Chair Meyer pointed out that Amendment #1 had been adopted at the previous hearing. Representative Joule WITHDREW Amendment #2. Representative Joule MOVED to ADOPT Amendment #3 for discussion purposes. Co-Chair Meyer OBJECTED. Representative Joule explained that the amendment would provide a limit of the total amount of the debt reimbursement to $400 thousand dollars, to be allocated between districts based on their size, as done in previous years. Co-Chair Meyer noted his intent there be no 60% cap, as it would not be as attractive with the 70% amount. PETE ECKLUND, STAFF, REPRESENTATIVE KEVIN MEYER, explained that from 2002 to 2004, there was an open-ended 70% approved and 60% non-approved reimbursement rate. Under that program, there was $699 million dollars authorized for bonds. Last year, $177 million dollars for bonds was authorized with a cap structure. Representative Joule WITHDREW Amendment #3. Representative Joule MOVED to ADOPT conceptual Amendment #4. Co-Chair Meyer OBJECTED. Representative Joule explained that conceptual Amendment #4 would provide an effective date. Representative Joule observed that last time bonds were issued, it included a provision for rural development. Co-Chair Meyer agreed that HB 202 added funding for rural schools; he observed the importance of keeping the balance between rural and urban schools. He pointed out that rural needs have been addressed partly through the major maintenance lists. Representative Joule WITHDREW Amendment #4. Representative Joule MOVED to ADOPT Amendment #5, a conceptual amendment which would add an effective date clause. Co-Chair Meyer OBJECTED. 2:45:39 PM Representative Joule explained that Amendment #5 allows rural school districts to participate in the debt reimbursement program. The amendment is technical in nature, addressing the North Slope Borough School District. Co-Chair Meyer clarified that the amendment would allow the North Slope Borough School District to participate in the st current 70/30 program, in effect until October 1, 2006. He asked if it was intended they be included in the 60/40 reimbursement after that date. Representative Joule did not know about that eligibility. Co-Chair Meyer asked if it would be possible to provide for Representative Joule's request. EDDY JEANS, DIRECTOR, EDUCATION SUPPORT SERVICES, DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT, explained that the proposed legislation is open to all school districts & the North Slope would qualify under the proposal. He stated that Amendment #5 would reallocate funds approved in SB 73, by taking $2 million out of the allocation for the Anchorage School District for the North Slope Borough School District. Mr. Jeans noted that the Borough had passed the school bond package, so they would fit within the timeline but they would not be eligible for any reimbursements in the FY07 budget since they did not notify the Department of Education of their intended debt. Co-Chair Meyer maintained his opposition to Amendment #5. 2:50:04 PM Co-Chair Meyer pointed out that the Anchorage bonds failed, but through the new election, they would qualify. Co-Chair Meyer questioned if the North Slope Borough School District understood that they would be responsible for 100%. 2:51:00 PM Mr. Ecklund explained that the list at the time crafted, did not include projects for the North Slope Borough. Representative Joule WITHDREW Amendment #5. Co-Chair Meyer said he would support the amendment if it did not take funds away from other school districts. Mr. Jeans pointed out that under the debt program, districts have to submit their projects separately. 2:52:41 PM Co-Chair Meyer acknowledged disappointment that Anchorage voters did not approve the 70/30-school bond reimbursement. He hoped at the 60/40 level, the district would bond without a cap be in place. 2:54:54 PM ] Representative Weyhrauch indicated his support for the legislation & the proposed mechanism. Co-Chair Meyer pointed out that the legislation is a form of municipal revenue sharing. Representative Hawker offered full endorsement for financing in the proposed legislation. Vice Chair Stoltze asked clarification regarding reimbursement. Co-Chair Meyer stated that the current 70% is in effective until October 2006. Representative Foster MOVED to REPORT CS HB 493 (FIN) out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CS HB 493 (FIN) was reported out of Committee with "individual" recommendations and with an indeterminate note by the Department of Education & Early Development.
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