Legislature(2005 - 2006)CAPITOL 106
04/05/2005 03:00 PM House HEALTH, EDUCATION & SOCIAL SERVICES
| Audio | Topic |
|---|---|
| Start | |
| HB14 | |
| HB214 | |
| HB13 | |
| Professional Teaching Practices Commission | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| HB 214 | |||
| = | HB 14 | ||
| = | HB 13 | ||
HB 13-SCHOOL CONSTRUCTION BOND REIMBURSEMENT 4:03:43 PM CHAIR WILSON announced that the next order of business would be HOUSE BILL NO. 13, "An Act relating to reimbursement of municipal bonds for school construction; and providing for an effective date." 4:04:16 PM REPRESENTATIVE GATTO, Alaska State Legislature, sponsor, stated that HB 13 will allow for the construction of three elementary schools and a high school, assuming the citizens of the Matanuska-Susitna Valley (Mat-Su) are willing to bond 30 percent of the costs. He said: I only want to leave you with one single point ... there are 600 kids that will show up this year, standing in the rain ... with no school to go to ... next year, those 600 and 600 more and the following year ... even more, because of the growth in the [Mat- Su] Valley, for which no one has indicated will even level off, much less reverse, the growth is exponential and substantial .... I am asking for you to allow us to put up 30 percent of the money and have the state put up 70 percent of the money and that is exactly the state's wish and obligation, to essentially allow for schools to be built in the areas where they are needed. I cannot begin to tell you how strong the need is, and so I ask you to consider this issue .... 4:06:32 PM KIM FLOYD, Public Information Specialist, Mat-Su Borough School District, said that she cannot reiterate strongly enough how much schools are needed [in the Mat-Su District]. She expressed her desire for HB 13 to move to the Finance Committee. 4:07:13 PM REPRESENTATIVE SEATON inquired as to when the Mat-Su community will vote on the issue of bonding and if HB 13 passed, when construction would be completed on the first of the schools. MS. FLOYD said that tomorrow evening, the school board will consider a bond package to forward to the assembly with the hope that there could be a vote on October 4, [2005]. She explained that the current timeline in the Mat-Su borough allows for a school to open approximately three years after it is voted on by the public, however, the Mat-Su Borough School District is going to try and fast-track that process. She emphasized that the Mat-Su School District is at a crisis point. 4:08:45 PM REPRESENTATIVE ANDERSON stated that he is ready to move HB 13 out of the House Health, Education and Social Services Standing Committee. 4:09:20 PM REPRESENTATIVE CISSNA stated that she would like to present an amendment on behalf of Representative Kapsner. The amendment [Amendment 1], labeled 24-LS0062\F.2, Mischel, 3/31/05, read as follows: Page 1, line 1, following "Act": Insert "relating to the school construction grant fund;" Page 1, following line 3: Insert new bill sections to read: "* Section 1. AS 14.11.008(a) is amended to read: (a) In order to receive a grant under this chapter or an appropriation under AS 37.05.560, a district must (1) be (A) a rural educational attendance area; (B) a municipal school district and, as of June 30 of the previous fiscal year, have a population of less than 1,000; or (C) a municipal school district that operates schools on a military reservation; and (2) provide a percentage share of the project cost, as determined under (b) or (c) of this section; a [. A] district shall provide the required participating share within three years after the date that the appropriation bill funding the grant is passed by the legislature. * Sec. 2. AS 14.11.008(a) is repealed and reenacted to read: (a) In order to receive a grant under this chapter or an appropriation under AS 37.05.560, a district must provide a percentage share of the project cost, as determined under (b) or (c) of this section. A district shall provide the required participating share within three years after the date that the appropriation bill funding the grant is passed by the legislature. * Sec. 3. AS 14.11.008 is amended by adding a new subsection to read: (g) Grant funds provided to a municipal school district under (a)(1)(C) of this section may only be used for the costs of school construction or major maintenance for a school located on a military reservation. * Sec. 4. AS 14.11.011(a) is amended to read: (a) A municipality that is a school district or a regional educational attendance area eligible under AS 14.11.008(a) may submit a request to the department for a grant under this chapter. * Sec. 5. AS 14.11.011(a) is repealed and reenacted to read: (a) A municipality that is a school district or a regional educational attendance area may submit a request to the department for a grant under this chapter." Page 5, lines 13 - 16: Delete all material and insert: "* Sec. 7. AS 14.11.008(g) is repealed. * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to read: RETROACTIVITY. If, under sec. 9 of this Act, secs. 1, 3, 4, and 6 of this Act take effect, they are retroactive to January 1, 2005. * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to read: CONTINGENT EFFECT. Sections 1 - 7 of this Act take effect only if, at the first regular session or at a special session, the Twenty-Fourth Alaska Legislature passes a bill appropriating an amount equal to or more than $100,000,000 to the school construction grant fund under AS 14.11.008 - 14.11.011, as amended by secs. 1, 3, and 4 of this Act, and that bill becomes law not later than October 1, 2005. * Sec. 10. If, under section 9 of this Act, secs. 2, 5, and 7 of this Act take effect, they take effect July 1, 2006. * Sec. 11. Except as provided in sec. 10 of this Act, this Act takes effect immediately under AS 01.10.070(c)." REPRESENTATIVE CISSNA said that Representative Kapsner's committee aide was available to provide necessary information. She related that Representative Gatto had received an opinion from the Legislative Legal Services on the Kasayulie v. State of Alaska case, which said that, "the most conservative approach to avoid a Kasayulie type of challenge with the extension in HB 13 would be to either fund concurrently some of the [regional education attendance areas (REAA)] projects in an appropriate bill or to find another REAA funding source to meet some of identified need. This assumes, however, that necessary appropriations and voter approvals are obtained to implement HB 13." Representative Cissna interpreted this to say that the state could prevent the embarrassing situation of having the courts tell it that the state is not meeting important responsibilities. REPRESENTATIVE GATTO said that if this amendment will allow the accomplishment of what the court has mandated, then he has no objection to allowing the single bill [HB 13] to take care of both issues. 4:12:29 PM PAT JACKSON, Staff to Representative Mary Kapsner, Alaska State Legislature, explained that legal services helped craft language that would link bonded school indebtedness and the list for schools that are not able to bond. Instead of using a conceptual amendment, she related, the drafter at Legislative Legal Services advocated for using a dollar figure because of the issue of time. Therefore, the aforementioned amendment suggests $100 million. She commented that this is an effort to address some of the concerns that the Kasayulie case brought out in terms of the needs of rural schools. CHAIR WILSON recalled that when Eddy Jeans, Department of Health and Social Services, testified on the amount, he didn't know because there was no way of knowing how many schools would apply for that, so it is open-ended. REPRESENTATIVE CISSNA moved to adopt Amendment 1 [text provided previously]. There being no objection, Amendment 1 was adopted. REPRESENTATIVE KOHRING moved that the committee rescind its action in adopting Amendment 1. There being no objection, Amendment 1 was rescinded. REPRESENTATIVE CISSNA moved to adopt Amendment 1. REPRESENTATIVE KOHRING objected for the purpose of discussion. He asked Representative Gatto what affect this [amendment] could potentially have on the Mat-Su's ability to be able to secure the bond debt reimbursement monies. REPRESENTATIVE GATTO said that the Mat-Su community is definitely willing to put up the 30 percent for the bond debt reimbursement. He pointed out that Kim Floyd's testimony reflected this, and that according to a recent survey in the Mat-Su area, there is overwhelming support. He continued: With regards to the other issue of the state coming up with enough money for their share, this amendment addresses $100 million dollar limit; ... we're capped at $100 million. If more people apply, that would be up to the state, subject to the confines of the amendment to say, "We only have $100 million, we can give it to the first, we can do it proportionally." But it would be a decision that would simply limit the amount of money to the $100 million. ... A member from the other body has proposed spending permanent fund earnings for school construction. That, also, could enter into the equation that we're considering here ... some of this, for school debt reimbursement, may not even be necessary. ... The $100 million cap may not even be reached with regard to the urban schools, which would conceivably keep the money available to go further down that list of the required schools. 4:19:30 PM REPRESENTATIVE KOHRING inquired as to enrollment increases in rural Alaska. MS. JACKSON said that she cannot answer that question directly, but that in Representative Kapsner's district there are increasing numbers of students and overcrowding issues. REPRESENTATIVE MCGUIRE said that she likes the [bond debt reimbursement program] because it requires local communities to make a local contribution. She inquired as to what amount might be appropriate to ask of rural schools to contribute [for the construction of new schools]. MS. JACKSON said that presently there are participating shares listed on the school construction grants and in school construction only. The current list has approximately $527 [million] in requests and the state's share is approximately $400 million. She added that she is aware of one district that may make a contribution of land. REPRESENTATIVE MCGUIRE said that any contribution that shows that the people in a community are supportive of a large project [like the construction of a school] is worthwhile and appreciated. She added that she welcomes leadership from Representative Kapsner in addressing rural communities and their needs in relation to HB 13. REPRESENTATIVE SEATON clarified: One thing that we have to remember is that there has been a movement to create boroughs so that they would donate. ... In two of the last three boroughs that were formed, it actually cost the state money because ... the federal government gives to the REAAs and as soon as it's a borough, ... there's that ... 23 percent max that can be made from that local [government]. So we are getting more funds in many of these areas that go to the school from the federal pass through that is then stopped if it is a borough. And then we actually have to take money out of the existing schools and shift it over to fund those. So, it's not as if no money is going from those areas; it may not come from a house assessment, but there is money matching and that is one of the big factors that has created this problem with forming boroughs. ... The boroughs, depending on which boroughs you want to form for school funding, can actually cost our schools money because of ... the federal cap that's been imposed. CHAIR WILSON offered that the federal government supplies extra funding for the rural schools, so that the state does not have to pay the portion that the [rural school] cannot supply. 4:26:46 PM REPRESENTATIVE CISSNA commented that HB 13 provides an opportunity to work with the Bush Caucus and address the needs of rural schools. She emphasized that the Mat-Su area is in need [of new schools] but that the Bush areas, in their own way, are facing challenges with increased enrollment, and population growth. 4:28:06 PM REPRESENTATIVE SEATON clarified that Amendment 1 offers a $100 million cap on the rural school construction grant fund. He said: That would match up with the [approximately] $200 million authorized as bonds because the bonding estimated for Anchorage and Kenai alone ... would be around $200 million, minimum. ... This [Amendment 1] gives 18 months of unlimited new debt reimbursement. So it could be much more than [$200 million]. REPRESENTATIVE SEATON turned to Amendment 1 and asked if the $100,000,000 on page 2, line 5 is a total cap, or if it would be a rural school grant with unlimited bonding match ability. CHAIR WILSON said that this meeting will be recessed until there can be further clarification on the issues that Representative Seaton brought forth. 4:31:08 PM REPRESENTATIVE GATTO read a statement from Jean Mischel, Attorney, Legislative Legal Counsel, Legislative Legal and Research Services, as follows: I have advised you that a discussion of any effect can only be speculative since much of the impact of this bill on the rural/urban funding equity issue raised in the case, depends on 1. Annual appropriations approved by the legislature for school facilities, both for bond debt reimbursement for municipal school districts and for capital improvement projects for REAA's and municipal school districts and 2. Voter approval of bond indebtedness. CHAIR WILSON stated that HB 13 would be held over. [The motion to adopt Amendment 1 and the objection by Representative Kohring was left pending.]
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