HOUSE BILL NO. 13 "An Act relating to reimbursement of municipal bonds for school construction; and providing for an effective date." CODY RICE, STAFF, REPRESENTATIVE CARL GATTO, explained that the purpose of HB 13 is to reauthorize school bond debt reimbursement. In the Health and Social Services (HESS) Committee it was amended to be contingent upon a minimum of a $100 million direct appropriation to qualifying areas primarily in rural Alaska. This program is an exact model of the previous program, with the exception of the direct appropriation. It allows for legislative authorization to reimburse local districts for up to 70 percent of construction costs for qualifying schools, and 60 percent for schools that don't meet the standards. Representative Joule asked how long it would go and if there is a cap. Mr. Rice replied that there is no cap and it would be in effect until July 1, 2006. It is up to each locality to determine the amount of the bonding at the ballot. Vice-Chair Stoltze speculated that if no local bonds were passed, a $100 million direct grant would remain. Mr. Rice said that is correct, however, bond debt reimbursement is contingent upon legislative approval. Vice-Chair Stoltze asked about a HESS amendment regarding student population of 1,000. Mr. Rice said he does not know. He explained that the intent of that amendment was stated to replicate the conditions of the previous bond package. He pointed out that another difference in the HESS amendment is the length of the window. 2:57:14 PM Mr. Rice noted that Representative Gatto did not support direct appropriations. 2:58:12 PM CARL ROSE, ALASKA ASSOCIATION OF ALASKA SCHOOL BOARDS, stated support for the bill. He addressed a concern that the reimbursement program be extended. He referred to the needs of the Alaska School Board, which resulted in two resolutions, one to extend the bonded indebtedness program and the other to insure that the capital improvement priority list is followed. He opined that $100 million is about $42 million shy of the current major maintenance list. He related that there is no way of knowing about the amount of money that will be passed in local bonds. He termed it an equity question and said not all needs are going to be met. 3:00:42 PM GEORGE VAKALIS, ASSISTANT SUPERINTENDENT, ANCHORAGE SCHOOL DISTRICT, (via teleconference) spoke of the many needs of Alaskan school districts. One of the biggest incentives to meet some of these needs is the debt reimbursement program. He spoke in support of HB 13. Co-Chair Chenault asked what the amount of the total needs is. Mr. Vakalis responded that Mr. Jeans has the list. 3:03:11 PM EDDY JEANS, DIRECTOR, EDUCATION SUPPORT SERVICES, DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT, reported that there is about $73 million on Anchorage's needs list, but that does not address all their needs. Co-Chair Chenault asked for a dollar amount regarding MatSu Valley's needs. Mr. Jeans replied $8.9 million for Settlers Bay, $172,000 for the Colony track, and $2.4 million for Wasilla High renovations, and one more, which he did not have the numbers for. 3:05:00 PM Representative Kelly asked for Fairbanks numbers. Mr. Jeans replied that those were not submitted to the department. Co-Chair Meyer asked how many schools qualify under the 70/30 program. Mr. Jeans replied that most of the projects on the new construction list are in rural Alaska. Representative Kelly spoke of a concern about his area's numbers. Mr. Jeans explained how the numbers are obtained for the department's list. 3:06:56 PM Co-Chair Chenault asked if new schools in the MatSu Valley could fall under this program. Mr. Jeans said any municipality could submit a request for review, but the question is whether they would qualify for 70 percent based on need, or 60 percent based on want. 3:07:57 PM REPRESENTATIVE MARK NEWMAN, spoke about the MatSu Valley's needs and increasing enrollment. The school board has just proposed $6 million in bonds for an elementary school, a high school, and for the expansion of Wasilla High School. 3:11:16 PM Co-Chair Chenault suggested that it is a worthwhile bill but a few more issues need to be looked at first before it is passed from committee. HB 13 was HELD in Committee for further consideration. 3:12:41 PM