SB 2-MUNICIPAL SCHOOL BOND REIMBURSEMENT  MS. MARY JACKSON, aide to Senator Torgerson, sponsor of SB 2, explained the measure as follows. HB 281, which passed last year, was a bonding package that included a number of projects, including school bonds. The timeframe for that bonding package is from 1998 to 2004. SB 2 predominantly affects the Anchorage School District. SB 2 exempts Anchorage from the requirement to adhere to some of the ballot proposition language currently in statute and corrects an unintended glitch in HB 281. CHAIR GREEN asked if the Mat-Su Borough ever fell within the troublesome part of HB 281. MS. JACKSON replied Mat-Su was included in HB 281 and was the reason the bill was retroactive to 1998. Her understanding is that the Mat-Su Borough has taken full advantage of all of the bonds so it does not have to come back under this program. She explained that Anchorage put a vote before the voters for 100 percent reimbursement, instead of a 70-30 split. CHAIR GREEN asked if all other language is the same. MS. JACKSON said it is. She pointed out the first revision to the law is on page 4 and that Section 1 is in existing law. CHAIR GREEN asked what cost is associated with SB 2. MS. JACKSON said the fiscal note is zero because it applies to a previous bond. CHAIR GREEN took public testimony. MS. DEBBIE OSSIANDER, Anchorage School Board, stated strong support for SB 2. She explained that technical language problems prohibited Anchorage from taking full advantage of HB 281. Anchorage voters approved $77.9 million worth of school bonds. At the time no one knew whether any state reimbursement for those bonds was a possibility. Passage of SB 2 will enable Anchorage to follow suit with other districts and take advantage of previously apportioned money. CHAIR GREEN asked Ms. Ossiander if Anchorage was included in the conversation about HB 281 last year. MS. OSSIANDER said it was and that Anchorage lobbied for debt reimbursement. Unfortunately, at the time, Anchorage did not know what percentage of debt reimbursement was possible. At the advice of bond counsel, language was put forth to the voters saying that Anchorage would attempt to go for debt reimbursement but, if not available, 100 percent would be paid locally. SENATOR WARD asked how much money is involved. MR. EDDY JEANS, school finance manager for the Department of Education and Early Development (DOEED), said SB 2 only affects the Anchorage School District and possibly one project in the Northwest Arctic Borough. Under HB 281, the legislature passed a lengthy debt reimbursement list. Unfortunately, this will continue to be a problem in the future as municipalities continue to get voter approval for projects when the debt reimbursement program has no authorization for those projects. DOEED will not review and approve projects for a debt reimbursement program if there is no authorization. That is exactly what happened in Anchorage. There was no authorization on the books but Anchorage decided to go to the voters for approval. Key elements were not on the ballot that were required by the legislation, such as the amount of reimbursement from the State, the estimated total cost of the project, the estimated interest, and the estimated annual cost of operation and maintenance. DOEED will not review ballot language if it does not have authorization on the books so Anchorage got ahead of DOEED. CHAIR GREEN asked if the Mat-Su Borough came back to DOEED after it held its election. MR. JEANS said it did. CHAIR GREEN asked if it was assumed that Anchorage would qualify when HB 281 was enacted. MR. JEANS said that he could make that assurance. SENATOR DAVIS asked Ms. Ossiander for the projects those bonds will cover. MS. OSSIANDER replied SB 2 applies to the bonds that were passed on April 4, 2000. The projects include: · Phase 1 Bartlett High School · Phase 2 and 3 Chugiak High School · Phase 1 East High School · Phase 1 Service High School · Phase 1 Wendler Middle School · The Denali Elementary replacement project · District wide renewal/replacement ADA code grades, roof replacements, Girdwood roof replacement, electrical upgrades and traffic safety work. CHAIR GREEN noted an absence of any reference to charter schools. MS. OSSIANDER said that is true. CHAIR GREEN asked what it would take to get a charter school on the list. MS. OSSIANDER said it would take a bit of a philosophical shift for the Board. Currently, the Board assumes that charter schools would deal with their own building needs. There being no further testimony on SB 2, SENATOR LEMAN moved SB 2 from committee with individual recommendations and a zero fiscal note, if there is one. There being no objection, the motion carried.