Number 340                                                                    
                                                                               
           SB 135 SCHOOL CONSTRUCTION GRANT PROGRAM                          
                                                                               
  CHAIRMAN MACKIE  brought SB 135 before the committee as the final            
 order of business.                                                            
                                                                               
  MARLA BERG , an aide to Senator Adams, said SB 135 deals with the            
 required local contribution for school construction projects.                 
 Ms. Berg explained the legislation substitutes a three-part means             
 test for the existing waiver criteria.  Under the provisions of               
 this bill, a school district must meet all three criteria                     
 established in the bill to have their participating share waived.             
 The three-part test consists of:                                              
                                                                               
  (1)  An assessed valuation per average daily membership of                   
 $200,00 or less;                                                              
                                                                               
  (2)  An unemployment rate in the district of 10 percent or                   
 more; and                                                                     
                                                                               
  (3)  An average per capita income for residents in the                       
 district that is 85 percent or less of the statewide average per              
 capita income.                                                                
                                                                               
 Ms. Berg said although each of these measurements has its own                 
 specific shortcomings, the combination of criteria provides the               
 Commissioner of Education a pretty good idea of local economic                
 circumstances.  She said Senator Adams feels that school                      
 construction projects are badly needed throughout the state, and              
 passage of SB 135 would allow school construction to proceed in an            
 equitable and expeditious manner.                                             
                                                                               
 Number 358                                                                    
                                                                               
  SENATOR WILKEN  asked where the $200,000 assessed valuation of ADM           
 come from.   MS. BERG  explained that it is in an existing law that           
 passed in 1993.                                                               
                                                                               
 Number 365                                                                    
                                                                               
  EDDY JEANS , School Finance Manager, Department of Education, said           
 in preparing its fiscal note, the Department of Education took the            
 existing major maintenance list and capital improvement list, and             
 using a list of districts that would be eligible under this                   
 program, went through and identified those projects that would be             
 eligible for a waiver.                                                        
                                                                               
 Mr. Jeans said he did consider preparing the fiscal note based on             
 the Governor's capital budget, SB 107, but as he reviewed the bill,           
 the school construction grants are to named recipients and it would           
 not fall under the same criteria as the school construction grants.           
                                                                               
  SENATOR WILKEN  commented he has a feeling that assessed values in           
 unorganized areas are more of a reflection of a formula that                  
 generates a number rather than something having to do with the free           
 market establishing value.  He cautioned not to compare the two and           
 count them as being equal.   MS. BERG  agreed with Senator Wilken's           
 comments, and she added that for any community with a population of           
 under 750, they don't go out and really assess the value of the               
 area.                                                                         
 There being no further testimony,  CHAIRMAN MACKIE  asked for the             
 pleasure of the committee on SB 135.                                          
                                                                               
  SENATOR WILKEN  moved SB 135 and the accompanying fiscal notes be            
 passed out of committee with individual recommendations.   SENATOR            
 DONLEY  objected and stated he doesn't agree with the legislation.            
 The roll was taken with the following result:  Senators Wilken,               
 Hoffman, Phillips, and Mackie voted "Yea" and Senator Donley voted            
 "Nay."  The Chairman stated the motion carried.