GENERAL OBLIGATION BONDS Co-Chair Mulder noted that there were $1.4 billion dollars in general obligation (GO) bond requests. The attorneys indicated that they could not be included in one ominous bond bill. The intent was to use as few vehicles as possible and identify consistent themes. He observed that HB 524 contains GO bonds for new schools and university construction. House Bill 525 contains GO bonds for deferred maintenance of public facilities. Bond debt reimbursement was used for projects that did not fit into a GO bond package, because they were previously leveraged [HB 528]. Representative Lancaster's energy bill [HB 175] was utilized for the final component. House Bill 524 and HB 525 would appear on the November general election ballot. Co-Chair Mulder observed that projects were prioritized. The priority lists were strictly used with one exception. In new school construction, out of the first six schools: three were in [Representative Kaspner's] district and three were in Representative Foster's district. The proposed committee substitute took the first two [in Representative Kaspner's district] and the first two from Representative Foster's. HOUSE BILL NO. 524 "An Act relating to the issuance of general obligation bonds for the purpose of paying the cost of design, construction, and maintenance of schools and state facilities; and providing for an effective date." Co-Chair Mulder provided members with proposed committee substitute, work draft LS1725\C, dated 4/29/02 (copy on file.) He observed that HB 524 contains the new construction component of schools and learning facilities. He observed that in order to get the bonds to pass there needs to be a broad statewide perspective. Finance Committee Substitute for House Bill 524 authorizes a vote of the people on general obligation bonds issued by the state of Alaska for the construction of educational facilities. The proposal, totaling $149,795,595 dollars, provides for new schools, University of Alaska projects and a portion of a museum expansion in Anchorage. The new school projects include facilities in Tuluksak, Akiak, Scammon Bay, Teller and Anchorage. The University of Alaska funding includes projects on campuses in Fairbanks, Juneau, Homer, Valdez, Anchorage, Kenai, Sitka, Homer, and Ketchikan. The bond question would be on the November ballot. If approved by the voters, projects could commence early in 2003. Representative Croft observed that the third school on the priority list, Akiachak, was skipped. Co-Chair Mulder explained that the intent was to balance the two districts. Representative Croft observed that Anchorage schools, which were ranked 48, 49, 53, and 54, were added. Co-Chair Mulder pointed out that they were schools passed by the Anchorage voters. He stressed the need to assure the greatest support for passage of the bond package. The Anchorage schools are partially funded. He observed that there was a error on the Bartlett High School appropriation, which should be $1.9 million dollars. The Chugiak High School appropriation was also in error and should be $3.655,728 dollars. Representative Croft noted that Chugiak would be completely funded, but Barlett High School would only be funded for phase 2 and 3. He noted that parts of several schools were being funded. Co-Chair Mulder explained that the legislation contains the state share for projects proposed by the Anchorage School Board and accepted by the voters. WENDY REDMAN, VICE PRESIDENT, STATEWIDE PROGRAMS, UNIVERSITY OF ALASKA, provided information on HB 524. She noted that the Board approved the projects and rankings. The Fairbanks and Anchorage classroom projects represent board-approved phases for the facilities. The Lena Point facility was originally $18 million dollars, which was reduced in half in order to fit into the appropriation amount. The project was not designed to be phased. Other projects are as they were on the Board's priority list. She explained that pieces of their deferred maintenance needs are contained in other legislation. The University's top $50 million dollars in capital requests were funded, excluding deferred maintenance, which might show up in the capital budget bill. She did not know where the University Center would be funded. Delay in funding would be a problem for the Center, which was not in any of the funding bills. Vice-Chair Bunde questioned if the University of Alaska had discussed local contribution for the expansions. Ms. Redman noted that the Fairbanks campus would be contributing $30 million dollars. Overhead on the science and laboratory facilities would also be contributed in Anchorage. Representative Hudson questioned if the University has dropped the joint University of Alaska Southeast and Military and Veterans Affairs readiness facility. Ms. Redman noted that the project is a high priority but was submitted in the Military and Veterans Affairs budget. She stressed that the joint use/recreational facility is a high priority for the Alaska National Guard and University. Co-Chair Mulder stated that he was willing to work with Representative Hudson and the University to fund the project. Ms. Redman referred to the University Center, Anchorage campus. Co-Chair Mulder observed that the University indicated that the funding was needed earlier than later and bonding might be problematic. The intent is to provide funding through another vehicle. Representative Croft clarified that Tuluksak is in Representative Morgan's district. Representative Hudson referred to section 5. There is a $5 million dollar appropriation in the Department of Community and Economic Development for an educational museum facility design. He observed that the state has the opportunity to acquire several acres of land from the Alaska Electric Light and Power Company (AELP). The cost would be $1.9 million dollars, which covers the land acquisition and $500 thousand dollars to design a multi-facility that would be an expansion of the state museum and archives; both of which are in tough shape. He emphasized that the purchase must occur in the current year. HB 524 was heard and HELD in Committee for further consideration.