04/12/1993 02:23 PM Senate HES

 CHAIRMAN RIEGER brought  SB 59  (SCHOOL CONSTRUCTION &                        
 MAINTENANCE GRANTS) and  SB 60  (APPROP:SCHOOL CONSTRUCTION                   
 GRANT FUND) before the committee.  He directed attention to                   
 a draft CSSB 59(HES) which makes two major changes.  The first                
 change limits the maximum matching grant that could be                        
 required for a district to 30 percent.  For REAA's the maximum                
 match is 3.8 percent.  The second change is that it suspends                  
 these grant provisions for appropriations made in calendar                    
 year 1993.                                                                    
                                                                               
 Addressing SB 60, CHAIRMAN RIEGER said the bill, as introduced                
 by the Governor, had $150 million appropriated from the                       
 earnings reserve account.  He said it was his intention to                    
 create a work draft which does not appropriate that amount                    
 from the earnings reserve account, but appropriates it from                   
 the general fund and leaves the source of funding question up                 
 to the Senate Finance Committee.  Also, allocate that $150                    
 million to each area of the state at the rate of $7.5 million                 
 per Senate district, totaling $150 million.                                   
                                                                               
 SENATOR ELLIS asked if there had been any discussions with the                
 Governor on these suggested changes, and he raised concern of                 
 a possible veto by the Governor whereby school projects would                 
 go by the wayside.  CHAIRMAN RIEGER responded that he wants                   
 to have all of the possible modes of getting school                           
 construction funded up to the Finance Committee as soon as                    
 possible so they can make the final decision.  As he perceives                
 it, there are two basic approaches:  one is a debt                            
 reimbursement and the other is a straight grant approach.  He                 
 doesn't think it is really within the purview of the HESS                     
 Committee to decide which way to finance the schools, but                     
 rather a Finance Committee decision.                                          
                                                                               
 Number 404                                                                    
                                                                               
 DUANE GUILEY, Department of Education, said in discussing the                 
 capital legislation with the commissioner, the state board and                
 representatives from the Governor's office, one of the primary                
 goals of all parties concerned was establishing a local match                 
 for projects, so it is something that is important to all                     
 parties concerned in relation to this bill.  Also, the                        
 Governor's office has expressed a desire to have a multi-                     
 year plan.                                                                    
                                                                               
 CHAIRMAN RIEGER stated SB 59 and SB 60 would be held over                     
 until the following day at which time they would be back                      
 before the committee along with SB 180, SB 181 and SJR 30.