SENATE BILL NO. 146 "An Act relating to the regional educational attendance area and small municipal school district fund; relating to Mt. Edgecumbe High School; and relating to teacher housing." 9:48:02 AM Co-Chair Hoffman invited Liz Harpold to the table. 9:48:16 AM LIZ HARPOLD, STAFF, SENATOR DONNY OLSON, relayed that SB 146 amended the Regional Education Attendance Area (REAA) fund language to include major maintenance and construction at Mount Edgecumbe High School and major maintenance for teacher housing, in REAA or small municipal areas, as allowable uses for the fund. Additionally, the bill removed the $70 million cap on fund value, preventing any fund balance above the amount form lapsing into the general fund at the end of the year. The bill was previously introduced as SB 113, and had passed the Senate but died in House Finance Committee. 9:49:26 AM Co-Chair Hoffman OPENED public testimony. 9:49:39 AM Co-Chair Hoffman CLOSED public testimony. 9:49:46 AM Co-Chair Stedman commented that MEHS faced difficulty dealing with its maintenance. He considered that MEHS was the only school in the state that was put in with the overall state maintenance run through DOT&PF, which meant that the school had to compete with other state agencies for maintenance funding. He did not think there were maintenance advocates for the school. He said that when the committee had tried to fund some of the school's deferred maintenance in the past, the funds had been vetoed by the governor the reason being that the school was not on the maintenance list. He contended that the school could not be on the major maintenance list and the bill would correct the matter. He could not speak to how the school would rank with other schools across the state but believed that the treatment of the school overall would be more equitable. Co-Chair Stedman cited high levels of student performance at MEHS. He stressed that there were construction needs for teacher housing, new dormitories, and classroom spaces. He believed that the state could better serve the school. 9:53:31 AM Senator Kiehl addressed a new fiscal note from the Department of Education and Early Development, OMB Component 2737. The department requested $313.3 thousand and 2 new full-time positions in FY2026, which drops down to $297.3 in the out years. Senator Kiehl mentioned schools throughout the state that had student or teacher housing. He wondered whether the state could partner with Alaska Housing Finance Corporation (AHFC) to find human resources to provide DEED with the residential design and construction expertise necessary, rather than establishing new positions within the department. Co-Chair Hoffman agreed. SB 146 was HEARD and HELD in committee for further consideration.