REPORT TO THE PEOPLE
By Sen. Randy Phillips
May 9, 2001

The first session of the Twenty-second Alaska Legislature adjourned on May 8, 2001. The following is a summary of some of the key pieces of legislation that passed during the session.

BUDGET:
Senate Bill 29, an Act making capital appropriations and capitalizing funds, passed the Senate by a vote of 14 - 6. The total spending for FY '02 in the capital budget bill is $1.3 billion, including $111 million in state general funds, $910 million in federal funds, and $296 million in other funds. Projects for Senate District L include $350,000 for Eagle River road drainage rehabilitation, $25,000 for the Eagle River Lions Park water project, $30,000 for a van for the Northeast Anchorage Community Center/Boys and Girls Club, $17,500 for land purchase to expand the South Fork Volunteer Fire Department, and $10,500 for the Northeast Anchorage Community Patrol. Total spending for the greater Anchorage area is $215,663,635.

House Bills103 and 104 are the operating budget legation. The operating budget for FY '02 includes total state spending of $4.64 billion, which includes $2.24 billion in state general funds, $1.15 billion in federal funds, and $1.25 billion from other funding sources. This amount is more than $60 million below the governor's requested level of funding, and is a $49.5 million general fund increase over last year's (FY '01) operating budget.

Senate Joint Resolution 23, Proposing amendments to the Constitution of the State of Alaska relating to an appropriation limit and a spending limit, passed the Senate by a vote of 14 - 6 . This resolution will put the question before the voters on the next general election ballot whether to lower the constitutional spending limit to $3.1 billion for all state funding sources.

Senate Joint Resolution 24, Proposing amendments to the Constitution of the State of Alaska relating to the Constitutional Budget Reserve Fund, passed the Senate by a vote of 14 - 6. This resolution calls for an amendment to the Constitutional Budget Reserve Fund by revising the conditions under which a three-quarter vote of the legislature is required for appropriating money from the Fund. This will be on the 2002 general election ballot for statewide voter approval.

House Bill 234, an Act relating to the tobacco use education and cessation fund and to smoking education and cessation programs; relating to funding the tobacco use education and cessation fund; relating to financing of construction and major maintenance of public school facilities, facilities for the University of Alaska, and facilities for ports and harbors, authorizing the commissioner of revenue to sell the right to receive a portion of the anticipated revenue from a tobacco litigation settlement to the Northern Tobacco Securitization Corporation; relating to the deposit of certain anticipated revenue from a tobacco litigation settlement; authorizing the issuance of bonds by the Northern Tobacco Securitization Corporation with proceeds to finance public school construction and major maintenance, facilities for the University of Alaska, and facilities for ports and harbors, passed the Senate by a vote of 14 - 6.

EDUCATION
Senate Bill 133, An Act relating to a two-year transition for implementation of the public high school competency examination and to establishing a secondary student competency examination as a high school graduation requirement; relating to certain reports regarding academic performance of schools. SB 133 delays the first year for requirement of the high school exit exams until 2004, and addresses many of the concerns expressed by parents and educators about the exam.

House Bill 99, an Act relating to school discipline and safety programs, passed the Senate by a vote of 19 - 1. This bill requires written policies for conflict resolution strategy and procedures for reporting and resolving conflicts.

Senate Bill 174, an Act establishing a base student allocation for purposes of determining education funding in the amount of $4,010; providing that only 50 percent of the annual increase in assessed value may be included for purposes of calculating the required contribution to education from a city of borough school district; providing that a community with at least 101 students but not more than 425 students in average daily membership is counted as one elementary and one secondary school, and that, in a community with more than 425 students in average daily membership, each facility administered as a separate school, except certain alternative schools, is counted as a school, passed the Senate by a vote of 13 - 7. This bill makes changes to the education foundation formula, increasing the per student base by $70, for a total of $18.3 million.

TRANSPORTATION
Senate Bill 88, an Act relating to metropolitan planning organizations and to establishment of a metropolitan planning organization for the Anchorage metropolitan area, was referred back to the Senate for concurrence with House amendments, and passed by a vote of 20 - 0. I sponsored SB 88 to provide legislative representation on the Anchorage Metropolitan Area Transportation Study policy committee (AMATS). This committee prioritizes funding for transportation construction and maintenance projects. SB 88 will next go to the Governor for his consideration.

ECONOMIC DEVELOPMENT
Senate Bill 158, an Act directing the commissioner of revenue to prepare a report to the legislature relating to the state's participation in owning or financing a gas pipeline project, passed the Senate by a vote of 20 - 0. This bill requires the Commissioner of Revenue to present a comprehensive report with recommendations and financing options for the proposed natural gas pipeline. The report will be presented to the Governor and the Legislature by January 31, 2002.

Senate Concurrent Resolution 14, Establishing the Joint Committee on Natural Gas Pipelines, passed the Senate by a vote of 20 - 0. This committee will be established to study issues relating to the proposed gas pipeline and work with the federal and Canadian governments and take any necessary action to protect the state's best interests during negotiations for the pipeline.

Also on the subject of the proposed natural gas pipeline, Senate Bill 164, an Act prohibiting leases under the Right-of-Way Leasing Act on state land in or adjacent to the Beaufort Sea, passed the Senate by a vote of 18 - 0.

Senate Bill 93, an Act relating to the Arctic Winter Games Team Alaska trust, passed the Senate by a vote of 15 - 1. I sponsored SB 93 to provide a consistent funding source for the Arctic Winter Games, which are held every other year. Federal, state and private funds can be deposited into the trust.

Senate Bill 93 was signed into law by the Governor on May 7. All other of the above legislation will go next to the Governor.

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