SB 208-SCHOOL CONSTRUCTION BOND DEBT  8:14:48 AM CHAIR STEVENS announced the consideration of SB 208. DAVID SCOTT, Staff, Senator Donny Olson, Alaska State Legislature, Juneau, Alaska, presented changes in SB 208, version N. He noted one change on page 7, lines 1 and 2, the words "are less than or equal to the 20 percent participating share" were revised. The intent of the bill is to catch those districts whose participating share is 20 percent or less. CHAIR STEVENS asked Mr. Scott to summarize the bill. 8:16:18 AM SENATOR DUNLEAVY moved to adopt the CS for SB 208, labeled 28- LS1527\N, as the working document. CHAIR STEVENS objected for discussion. 8:16:49 AM MR. SCOTT explained that the bill is designed to encourage small and rural districts to address facility improvements via issuing debt, rather than through the state school construction grant program. He said there are two mechanisms for the state to provide for capital projects for education facilities. One is bond debt reimbursement program, which is typically a 70/30 split where the municipality pays 30 percent and the state pays 70 percent. There is also a 60/40 split which has space requirements. The second is the school construction/major maintenance grant program. He related the bill takes a data point of reference from the school construction and major maintenance program, which is 20 percent or lower, and uses it in the bond debt reimbursement program. If eligible for the participant share, in debt reimbursement it would be 20/80. He pointed out precedence page 5, line 30. The participating share requirement there is 10 percent. From 2005. He said that some schools have been on the grant list for some time. Not every district has the ability to bond, but those who can, can be reimbursed at a lower rate. 8:20:40 AM ELIZABETH NUDELMAN, Director, School Finance and Facilities, Department of Education and Early Development (DEED), Juneau, Alaska, answered questions related to SB 208. SENATOR STEDMAN asked if the department supports the program or has any concerns. MS. NUDELMAN said the department does support the programs and will continue to move them forward. 8:22:20 AM SENATOR DONNY OLSON, Alaska State Legislature, Juneau, Alaska, sponsor of SB 208. He said it is a very popular bill and will affect many across the state. SENATOR HUGGINS thanked Senator Olson for sponsoring the bill. He asked which schools are immediately affected. MR. SCOTT said there is a list in members' packets and it includes all schools eligible for 20 percent and below. He read several schools. He addressed the immediate effects of Section 2. SENATOR HUGGINS couldn't find it. MR. SCOTT commented on Lake and Peninsula. CHAIR STEVENS thanked. TY MASE, Superintendent, Lake and Peninsula School District, King Salmon, Alaska, answered questions related to SB 208. He described the issues surrounding Port Alsworth School. He explained how the borough passed a bond to fund the repairs on the school. SB 208 provides equity for their district. 8:27:20 AM CHAIR STEVENS thanked Mr. Mase. SENATOR GARDNER MR. MASE SENATOR GARDNER MR. MASE said yes. CHAIR STEVENS closed public hearing. [The assumption is that Chair Stevens removed his objection to adopting the CS.] 8:29:09 AM SENATOR DUNLEAVY moved to report CSSB 208 (EDC) from committee with individual recommendations and attached fiscal note. SENATOR GARDNER objected to tell a story about the Little Red Hen. She withdrew her objection. There being no further objection, CSSB 208(EDC) moved from the Senate Education Standing Committee.