SB 64 — An Act repealing state aid for costs of school construction debt; and providing for an effective date.

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"An Act relatingrepealing to state aid for costs of school construction debt;

and providing for an effective date." CS FOR SENATE BILL NO.

64(EDC)64 01 "An Act relatingrepealing to state aid for costs of school construction debt;

criteria 12 developed under this paragraph must include requirements intended to achieve cost- 13 effective school construction,construction including,including consideration of multipurpose function 14 and designs to reduce overall facility costs for the affected community;

27 (b) The amount of money available each fiscal year for expenditure under (a) 28 of this section shall be the annual debt service on the projected liability for debt 29 incurred and funded for reimbursement before July 1, 2019, under former 30 AS 14.11.100(a) 30 divided by the percentage of all schools that are located in a city or 31 borough school 31 district that is not a small municipal school district, the quotient of which is to be multiplied by .244.

AS 14.11.100(s)14.11.035 is amended to read:

03 (s)Sec. Notwithstanding any other provision of law, the commissioner may not 04 approve an application for bond debt reimbursement made by a municipality for 05 school construction or major maintenance for indebtedness authorized by the qualified 06 voters of the municipality on or after January 1, 2015 [, BUT BEFORE JULY 1, 07 2020].

0814.11.035. * Sec.

Report on school construction and major maintenance 04 funding.

Every February, the department shall provide to the governor and the 05 legislature an annual report on the effectiveness of the school construction and major 06 maintenance grants and [,] state aid for school construction and major maintenance in 07 regional educational attendance areas [, AND STATE AID FOR COSTS OF 08 SCHOOL CONSTRUCTION DEBT] under this chapter.

The report must include an 09 analysis of funding sources and the short-term and long-term fiscal effects of the 10 funding on the state.

Copies of the report shall be made available to the public and to 11 the legislature.

12 * Sec.

AS 14.11.102(c)14.11.135(3) is amended to read:

0913 (c)(3) The"costs commissionerof mayschool notconstruction" allocatemeans fundsthe tocost aof municipalityacquiring, under14 10constructing, ASenlarging, 14.11.100repairing, forremodeling, theequipping, retirementor furnishing of thepublic principal15 ofelementary and interestsecondary onschools outstandingthat tax-are 11owned exemptor bonds,operated notes,by orthe otherstate, indebtednessa authorized16 bymunicipality, theor qualifieda votersdistrict ofand includes the 12sum municipalitytotal onof orall aftercosts Januaryof 1,financing 2015and [,17 BUTcarrying BEFOREout JULYthe 1,project; 2020].

13these *include Sec.the costs of all necessary studies, surveys, plans 18 and specifications, architectural, engineering, or other special services, acquisition of 19 real property, site preparation and development, purchase, construction, 20 reconstruction, and improvement of real property and the acquisition of machinery and 21 equipment that may be necessary in connection with the project;

an allocable portion 22 of the administrative and operating expenses of the grantee;

the cost of financing the 23 project [, INCLUDING INTEREST ON BONDS ISSUED TO FINANCE THE 24 PROJECT;] and the cost of other items, including indemnity and surety bonds and 25 premiums on insurance, legal fees, fees and expenses of trustees, depositaries, and 26 financial advisors [, AND PAYING AGENTS FOR THE BONDS ISSUED AS THE 27 ISSUER CONSIDERS NECESSARY];

28 * Sec.

1429 (a)Sec. If a municipality levies and collects property taxes, the governing body 15 shall provide the following notice:

1629.45.020. "NOTICE TO TAXPAYER 17 For the current fiscal year the (city)(borough) has been allocated the 18 following amount of state aid for school and municipal purposes under 19 the applicable financial assistance Acts:

20Taxpayer PUBLICnotice. SCHOOL FUNDING PROGRAM (AS 14.17) $ 21 [STATE AID FOR RETIREMENT OF SCHOOL CON- $ 22 STRUCTION DEBT (AS 14.11.100)] 23 COMMUNITY ASSISTANCE $ 24 PROGRAM (AS 29.60.850 - 29.60.879) 25 TOTAL AID $ 26 The millage equivalent of this state aid, based on the dollar value of a 27 mill in the municipality during the current assessment year and for the 28 preceding assessment year, is:

29(a) MILLAGEIf EQUIVALENTa municipality levies and collects 30 PREVIOUSproperty YEARtaxes, THISthe YEARgoverning 31body PUBLICshall SCHOOLprovide FUNDINGthe .following notice:

31 "NOTICE TO TAXPAYER For the current fiscal year the (city) (borough) has been allocated the 02 following amount of state aid for school and municipal purposes under 03 the applicable financial assistance Acts:

04 PUBLIC SCHOOL FUNDING PROGRAM (AS 14.17) $ 05 [STATE AID FOR RETIREMENT OF SCHOOL $ 06 CONSTRUCTION DEBT (AS 14.11.100)] 07 COMMUNITY ASSISTANCE PROGRAM 08 (AS 29.60.850 - 29.60.879) $ 09 TOTAL AID $ 10 The millage equivalent of this state aid, based on the dollar value of a 11 mill in the municipality during the current assessment year and for the 12 preceding assessment year, is:

13 MILLAGE EQUIVALENT 14 PREVIOUS YEAR THIS YEAR 15 PUBLIC SCHOOL FUNDING .

.MILLS 16 PROGRAM ASSISTANCE 0217 [STATE AID FOR RETIREMENT OF .

.MILLS 0318 OF SCHOOL CONSTRUCTION 0419 DEBT] 0520 COMMUNITY ASSISTANCE .

.MILLS 0621 PROGRAM 0722 TOTAL MILLAGE EQUIVALENT .

.MILLS" 0823 Notice shall be provided by 0924 (1) furnishing a copy of the notice with tax statements mailed for the 1025 fiscal year for which aid is received;

or 1126 (2) publishing in a newspaper of general circulation in the municipality 1227 a copy of the notice once each week for a period of three successive weeks, with 1328 publication to occur not later than 45 days after the final adoption of the municipality's 1429 budget.

1530 * Sec.

1631 (a) For each draw made by a municipality under AS 37.06.010, the 17 municipality shall contribute a local share to the cost of the capital project for which 1802 the draw is made.

The amount of the local share equals the local share percentage as 1903 calculated under (1) of this subsection, divided by the state share percentage as 2004 calculated under (2) of this subsection, multiplied by the amount of the draw.

For 2105 purposes of this subsection, 2206 (1) the local share percentage is 2307 (A) 30 percent for a municipality with a population of 5,000 or 2408 more;

2509 (B) for a municipality with a population of 1,000 - 4,999, the 2610 greater of 2711 (i) 15 percent;

or 2812 (ii) the percentage obtained by dividing the amount that 2913 would be received by the municipality from a property tax levy of 3014 1/1000th of a mill for each $1,000 of grant funds received by the sum 3115 of that first amount plus the amount of the grant or draw, but not more 16 than 30 percent;

0217 (C) for a municipality with a population of under 1,000, the 0318 greater of 0419 (i) five percent;

or 0520 (ii) the percentage obtained by dividing the amount that 0621 would be received by the municipality from a property tax levy of 0722 1/1000th of a mill for each $1,000 of grant funds received by the sum 0823 of that first amount plus the amount of the grant or draw, but not more 0924 than 30 percent;