SB 241 - POSTSECONDARY SCHOOL TAX CREDIT CHAIRMAN WILKEN stated he reviewed SB 140, relating to tax credits for contributions to education, after Senator Ellis commented on it, and his recollections were correct. SB 140 has a $2 million fiscal note, and raises concerns about how one would direct money to a particular school. He thought trying to combine SB 241 and SB 140 would slow down Senator Leman's efforts, therefore he planned to hold SB 140 at this time. SENATOR LEMAN said he had no problem addressing the other issue as it has validity, but agreed with Chairman Wilken's assessment that incorporating SB 140 would create a much larger issue than the narrow issue addressed in SB 241. He noted he would like to see a version of both bills pass as they both benefit education and offer various choices to students and parents, but he agreed with Chairman Wilken's conclusion. SENATOR ELLIS informed committee members Mr. Rasmussen would like both bills to pass, because they would benefit his philanthropy efforts toward the Alaska Bible College and the University of Alaska. Senator Ellis hoped the committee would consider expanding this whole concept. He asked Senator Leman if he gave any consideration to a two-tiered system of tax credits when drafting the bill. SENATOR LEMAN thought the Legislature should revisit the tax credit legislation, however he thought current recipients of the program might be concerned. Number 415 SENATOR ELLIS expressed concern that at some point in the future the argument that general fund obligations to the University of Alaska, Sheldon Jackson College, and Alaska Pacific University should be reduced will gain credibility and be used as an excuse to cut public funds for higher education for both private and public institutions, because of the tax advantages granted by the Legislature. CHAIRMAN WILKEN said he served on the Mapco Alaska Advisory Board for a number of years. That board passed out money Mapco wanted to donate in the State. Mapco Alaska has been a major benefactor of the University and has benefited from the tax credits. Concern about the same argument expressed by Senator Ellis surfaced in Fairbanks. He said it is not his intent to lower general fund obligations to the University just because legislation enhances Alaska's educational institutions' ability to get private donations. SENATOR LEMAN stated that was not his intent either; his intent was to encourage philanthropy. He emphasized he did not want to get into a long discourse on tax credits and changing that structure in SB 241, because that will be a lengthy process that should and can be done in the future. SENATOR LEMAN moved SB 241 out of committee with individual recommendations. There being no objection, the motion carried.