HB 359 - APPROP: CONSTRUCT/UPGRADE ON-BASE SCHOOLS TAPE 94-26, SIDE A Number 000 CHAIR BUNDE asked if there were any questions for Rep. Eldon Mulder. REP. TOOHEY asked if there was forthcoming information from the DOE regarding HB 359. Number 020 REP. ELDON MULDER, Prime Sponsor of HB 359, said that the DOE does not categorize military bases within their process, although the DOE would like military base schools to be within their process. Number 280 PATRICK MADROS, Chairperson, Yukon-Koyukuk School District, testified in opposition to HB 359. He stated that the proposal would provide $26,099,300 of state money for the construction of a new elementary school at Eielson Air Force Base (AFB) and upgrades to the remaining on base schools in Fairbanks and Anchorage, virtually ignoring the statewide school construction priority process. He maintained that Yukon Koyukuk and other school districts have followed the current CPI process and have also appealed the position of one of the district's projects. He felt to pass HB 359 would be to ignore the current process and statewide prioritized need. He stated that the military base schools should apply in the same manner that all other districts are required to. MR. MADROS further explained various states of disrepair in several schools within the Yukon-Koyukuk School District. He asserted that there must be equality in the process of prioritization with both military and state run schools. He also indicated that the Bureau of Indian Affairs (BIA) upgraded all their facilities before they were given over to the state. He felt that military base schools should also upgrade their facilities before turning them over to the state. Number 394 CHAIR BUNDE agreed that the children of Yukon-Koyukuk are just as important as children anywhere else in the state. REP. TOOHEY said the military would like to give the schools over to the state, but the state cannot accept them because of the conditions of most of the schools. She said it is a catch 22 situation and indicated that Rep. Mulder was proposing that the military pay half and the state pay half to upgrade these schools. She questioned Mr. Madros as to how the problem should be solved. MR. MADROS indicated that Adak School was upgraded and was eventually shut down. REP. MULDER explained that the U.S. Department of Defense (U.S. DOD) built the Adak school. REP. TOOHEY clarified and said there was not state money involved in the upgrade. Number 479 REP. MULDER maintained that BIA schools were funded by the federal government. He said that he would welcome federal funds to accomplish the needed upgrades. He said the problem is that the military would never receive $52 million in one lump sum from the government. He also said that if the base schools are not upgraded, their chances for closure are greater. He said if the state leverages half of the needed funds to make the upgrades, it would show the federal government that the state is willing to cooperate and solve its own problems. MR. MADROS said that the Adak schools did not go through the due process that his district has. He felt that Alaska is in a strategically key position and that most of the state's bases will not be closed. He said HB 359 would allow base schools "through the back door" for upgrades. Number 600 REP. NICHOLIA stated that funding the schools and making the upgrades would not safeguard them from closure. She felt that perhaps only one base would be closed, seeing as the state is so close to Europe. REP. KOTT asked Rep. Mulder what would happen if upgrades were made to the schools on Fort Richardson Army Installation and then the base was closed in 1996. REP. MULDER said that it was his understanding that "dime one" would not be spent on Fort Richardson until there is assurance that the base will not be closed. He said the potential for closure is very possible. He asserted that the economic impact on Alaska would be a loss of approximately $200 million annually. Number 666 REP. TOOHEY asked how many public students are enrolled in the base schools. REP. MULDER said he did not know, but indicated there were more public students attending base schools in Fairbanks than in Anchorage. REP. VEZEY asked which school in Fairbanks he was referring to. REP. MULDER said he was not sure which school on Eielson Air Force Base was attended by public students. Number 714 CHAIR BUNDE stated that the majority of the base schools on Eielson are attended by public students. MR. MADROS noted that the Air Force guaranteed Galena that they would not close the military base there for an "umpteen" number of years if they upgraded their power plant facility. He said a few years later the air force base was shut down. Number 759 CHAIR BUNDE indicated that Mr. Madros brought up a good point when he mentioned due process. REP. VEZEY asked Mr. Madros if Galena still has a 20 year contract with the U.S. Air Force regardless of the base closure. MR. MADROS said he was unsure. REP. VEZEY said that the U.S. Air Force did enter into a 20 year contract with Galena, and it was his understanding that the city will be paid regardless of the fact that no power is being generated by the new power plant. MR. MADROS asked how one goes about suing the federal government. REP. VEZEY clarified by saying that he thought Mr. Madros might have updated information on that issue. Number 796 REP. TOOHEY explained that if the state produces $26 million, the federal government would match that amount. MR. MADROS reiterated that Yukon-Koyukuk School District is in need much like other schools and stressed due process. Number 822 CHAIR BUNDE asked for further questions. REP. KOTT asked Rep. Mulder if there was a companion bill to HB 359. Number 830 REP. MULDER said no. He also said that the military base situation is an "odd duck" because of the problem of financial responsibility and taxing authority and because of the political dimension. He said if it weren't for those specific factors, the military would go by the state priority procedures. CHAIR BUNDE said that he did not have any answers to the concerns of committee. Number 874 REP. KOTT said the question is whether or not the base schools should be funded. He said he would support moving HB 359 to the Finance committee to make that decision. REP. TOOHEY agreed with Rep. Kott. She asked Rep. Mulder who would be financially responsible if the ceiling was to collapse at Ursa Minor School. REP. MULDER said he was uncertain. REP. TOOHEY stated it was assumed that the roof of that school was in a worse state of disrepair than the schools in the Yukon-Koyukuk School District. REP. MULDER said technically Ursa Minor is the responsibility of the U.S. Department of Education (U.S. DOE). Number 918 CHAIR BUNDE speculated that the U.S. DOE would close the school if the roof was to collapse. Number 930 DUANE GUILEY, Director, Division of Education Finance and Support Services, Department of Education, answered questions on HB 359. He stated that it was the joint responsibility of the U.S. DOE and state DOE for major maintenance and school construction. He said the legislature has previously provided funding for major maintenance and construction to districts for life/health safety issues. He maintained that $7 million was granted to the Anchorage School District for the seven military base schools. He said approximately $145,000 was spent per facility to address electrical upgrades and fire marshall code violations. He mentioned several other base schools that received state funding. Mr. Guiley stated that Fairbanks has a six year plan that is a phased approach whereby they ask for planning design money and then the funds for school construction. He said those projects have been applied for by the Fairbanks School District. He also said the Anchorage School District indicated that they would complete applications for all military base schools on Anchorage military bases to be evaluated and ranked in the priority process. Number 017 REP. TOOHEY asked if the base schools would then be on the statewide priority list or if they would be on their "own priority." Number 020 MR. GUILEY said the DOE would envision putting the base schools on the statewide priority list. He stated that the Eielson AFB school construction grant is 14th on the statewide priority list and that it was number one on the military task force list. Number 035 CHAIR BUNDE appreciated the concerns of all who testified. He asked the pleasure of the committee. REP. VEZEY made a motion to pass HB 359 out of committee with individual recommendations. Hearing no objections, CHAIR BUNDE said HB 359 was so moved. He then brought HJR 47 to the table.