SB 264-MUNICIPAL BOND REIMBURSEMENT                                                                          
                                                                                                                                
CHAIRWOMAN  GREEN explained  that SB  264 is an  extension  of the                                                              
school  debt reimbursement  program that  began in  1999. It  sets                                                              
aside $113 million of additional  money for which school districts                                                              
can  bond. The  state will  participate  at the  70 percent  level                                                              
while  the school  districts will  participate at  the 30  percent                                                              
level. SB 264 contains $50 million  for projects in Anchorage, $15                                                              
million for  projects in  Fairbanks, $13  million for projects  in                                                              
Mat-Su,  $10 million  for projects  in Kenai and  $20 million  for                                                              
projects  in smaller  school districts  in  organized Alaska.  She                                                              
then asked a  representative from the Department  of Education and                                                              
Early Development (DOEED) to testify.                                                                                           
                                                                                                                                
MR. EDDIE JEANS,  School Finance Manager, DOEED,  informed members                                                              
that  this  bill requires  districts  to  get DOEED  approval  for                                                              
projects prior to  getting voter approval. DOEED is  opposed to SB                                                              
264  as it  believes  the  legislature needs  to  look  at a  more                                                              
comprehensive  funding package for  school construction  and major                                                              
maintenance  that   deals  with  all  of  the   state's  needs  as                                                              
identified  on  DOEED's  priority   list.  He  offered  to  answer                                                              
questions.                                                                                                                      
                                                                                                                                
CHAIRWOMAN  GREEN   said  that  SB  264  does   not  preclude  the                                                              
legislature from  funding other projects through  other mechanisms                                                              
as well. She noted that it is very  difficult to maintain existing                                                              
facilities in high growth areas;  this bill is designed to address                                                              
that need.                                                                                                                      
                                                                                                                                
There  being no  further  questions  or discussion,  SENATOR  WARD                                                              
moved SB  264 from committee  with individual recommendations  and                                                              
its  accompanying  fiscal  note.  There being  no  objection,  the                                                              
motion carried.