SJR 23-CONST. AM: STUDENT LOAN DEBT                                                                           
                                                                                                                                
8:01:33 AM                                                                                                                    
CHAIR STEVENS announced the consideration of SJR 23, version U.                                                                 
                                                                                                                                
SENATOR  ANNA  FAIRCLOUGH,   Alaska  State  Legislature,  Juneau,                                                               
Alaska, sponsor  of SJR 23,  explained that the bill  proposes to                                                               
ask  voters if  the  state can  refinance post-secondary  student                                                               
loans.  It would  allow  the  state to  use  its  good credit  to                                                               
provide students  in the  past and future  with a  lower interest                                                               
rate.                                                                                                                           
                                                                                                                                
CHAIR STEVENS opened and closed public testimony.                                                                               
                                                                                                                                
8:03:02 AM                                                                                                                    
SENATOR STEDMAN  asked why a  constitutional amendment  is needed                                                               
instead of going through an appropriations process.                                                                             
                                                                                                                                
CHAIR STEVENS announced the arrival of Senator Huggins.                                                                         
                                                                                                                                
SENATOR  FAIRCLOUGH  explained  that Alaska's  constitution  only                                                               
allows bonding, with the full faith  and credit of the state, for                                                               
housing loans for veterans and for capital improvement projects.                                                                
                                                                                                                                
SENATOR  STEDMAN   restated  the  question  and   asked  why  the                                                               
treasury's ability  to restructure  notes is  not used,  or other                                                               
loan programs, instead of changing the constitution.                                                                            
                                                                                                                                
SENATOR FAIRCLOUGH  said it certainly  is up  to the will  of the                                                               
body  if they  want  to use  general fund  dollars,  but that  is                                                               
something  that has  not been  done  in the  past. She  explained                                                               
that, currently, the  loans are issued against  the revenues that                                                               
the students will pay, a higher percentage than the bond market.                                                                
                                                                                                                                
SENATOR STEDMAN asked  if there is no other  mechanism to achieve                                                               
the goal, short of changing the constitution.                                                                                   
                                                                                                                                
SENATOR  FAIRCLOUGH said  the legislature  could  fully fund  the                                                               
program if  they opted to.  There would  be an issue  of fairness                                                               
due to the number of loans still due.                                                                                           
                                                                                                                                
She related that before this could  happen, it would go to a vote                                                               
of the  people in the  2014 election. Next, the  commission would                                                               
have  to  seek approval  by  the  legislature.  In 2016,  at  the                                                               
earliest,  voters  would  have   to  approve  the  constitutional                                                               
amendment.  The earliest  a student  could  receive the  benefits                                                               
would be in 2017.                                                                                                               
                                                                                                                                
8:06:25 AM                                                                                                                    
CHAIR  STEVENS said  the  actual  vote would  take  place in  the                                                               
general election of 2014.                                                                                                       
                                                                                                                                
SENATOR FAIRCLOUGH said yes.                                                                                                    
                                                                                                                                
SENATOR  DUNLEAVY moved  to  report SJR  23  from committee  with                                                               
individual  recommendations  and  attached  fiscal  notes.  There                                                               
being  no  objection,  SJR  23   was  reported  from  the  Senate                                                               
Education Standing Committee.                                                                                                   
                                                                                                                                
8:07:05 AM                                                                                                                    
At ease