Legislature(2005 - 2006)
04/14/2005 04:36 PM House HES
| Audio | Topic |
|---|---|
| Start | |
| HB161 | |
| HB13 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 13-SCHOOL CONSTRUCTION BOND REIMBURSEMENT CHAIR WILSON announced that the final order of business was HOUSE BILL NO. 13, "An Act relating to reimbursement of municipal bonds for school construction; and providing for an effective date." 4:58:11 PM REPRESENTATIVE KOHRING expressed appreciation that the bill is being heard. 4:59:04 PM REPRESENTATIVE CISSNA reminded the committee that [Amendment 1, labeled 24-LS0062\F.2, Mischel, 3/31/05] was left pending from the prior hearing. Amendment 1, [which Representative Cissna had presented on behalf of Representative Mary Kapsner], 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 AS 14.11.008(a) is repealed and reenacted to read: (a) In order to receive a grant under this chapter or an appropriation under AS 37.05.560, a district must provide a percentage share of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 pointed out that Representative Kapsner was in the audience and invited her to speak concerning the amendment. 5:00:14 PM REPRESENTATIVE MARY KAPSNER, Alaska State Legislature, addressed Amendment 1. She stated that the amendment attempts to "bring parity to the bill." She explained that a couple of years ago, the legislature passed a bond package and the overall bill tries to piggyback on that bond package. She said it was expected that that the entire bond package would equal $500 million; however, it turned out to be $728-$729 million. Of that, approximately one fourth went to rural schools - $154 million. She said, "We still have $441 million out there on the books in terms of school construction and predominately that's in rural Alaska." REPRESENTATIVE KAPSNER said there have been lawsuits regarding the parity and disparity in the allocation of funds to rural schools; because rural schools are not bondable, they rely on the legislature to make appropriations to them. Amendment 1 would provide an extra $100 million to rural schools, which would bring more parity to the situation and allow the court to recognize that there are people within the legislature who recognize the disparity between urban and rural funding. REPRESENTATIVE KAPSNER offered her understanding that an amendment to Amendment 1 has been suggested, which would provide $100 million per year for three years for rural construction. REPRESENTATIVE KAPSNER noted that Representative Kohring has mentioned the overcrowding of schools. She revealed that in her district, one rural school in the village of Kipnuk is currently at 323 percent capacity, while the least crowded school in her district is at 155 percent. By 2012, she said, the expectation is that the lowest number will be at 227 percent capacity. REPRESENTATIVE KAPSNER, in response to a question from Chair Wilson, confirmed it's true that of all the various populations in Alaska, the Native population is growing at a faster rate than any other. She said that while the Matanuska-Susitna (Mat- Su) area is facing a lot of population growth because of immigration, rural Alaskan villages are losing members who leave the villages. Even so, she explained the Native population growth thus: "We do love babies and we keep on having them." She noted that in general in Alaskan villages, one-third to one- half of the population is in elementary school and high school. 5:04:16 PM REPRESENTATIVE GARDNER commented that the additional $100 million still wouldn't be adequate if the need is for over $400 million. REPRESENTATIVE KAPSNER said that it would be a step in the right direction, and "an acknowledgment that there hasn't been parity." She noted that a lot of the rural schools that currently need funding were built during the Bureau of Indian Affairs' oversight of education and some of the schools have yet to receive a state-funded school building. 5:05:35 PM REPRESENTATIVE CISSNA restated her motion to adopt Amendment 1. 5:05:57 PM REPRESENTATIVE KOHRING restated his objection [from 4/05/05] for discussion purposes. He said he would like to hear if the sponsor approves of Amendment 1. CODY RICE, Staff to Representative Carl Gatto, Alaska State Legislature, co-sponsor of HB 13, responded: I would caution the committee to be careful about speaking about parity on the record because [the state is] involved in current litigation. And I think I'd be loath to say that the committee's action on this amendment is necessarily indicative of the legislature's feelings on whether or not there is educational parity. That's my feeling. REPRESENTATIVE KOHRING asked Mr. Rice if the amendment is compatible with the legislation and does not need to be addressed in a separate bill. MR. RICE replied, "Representative Gatto's opinion is he would like the bill to move." REPRESENTATIVE KOHRING removed his objection to Amendment 1. 5:07:13 PM REPRESENTATIVE SEATON objected for discussion purposes. He commented that Amendment 1 would add a new Section 1 to the bill. He asked, "Is this a new section and the existing sections are just renumbered?" MR. RICE replied affirmatively. REPRESENTATIVE SEATON withdrew his objection. 5:08:39 PM REPRESENTATIVE CISSNA moved to adopt a conceptual amendment to Amendment 1, as follows [the page and line numbers correspond to the numbers on Amendment 1]: On page 2, line 25: After "$100,000,000" Insert "per year for three years" CHAIR WILSON objected to the conceptual amendment to Amendment 1. She said that if [the committee] is not careful, the bond will be so expensive that the state cannot meet the bond debt reimbursement requirement. 5:10:25 PM MR. RICE stated his belief that the committee could not make such an amendment because it would bind the future legislature. REPRESENTATIVE SEATON remarked, "We've got an estimate that HB 13 is going to be [a] $200-$250 million possible bond debt, and I'm not sure that looking back at the old bond issue is where we should be." 5:11:19 PM REPRESENTATIVE CISSNA withdrew the conceptual amendment to Amendment 1. CHAIR WILSON asked if there were any further objections to Amendment 1. There being none, Amendment 1 was adopted. REPRESENTATIVE KOHRING moved to report HB 13, as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 13(HES) was reported from the House Health, Education and Social Services Standing Committee.
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