FY2017-26 Supporting Full Funding From The State Of Alaska For the School Bond Debt Reimbursement.1
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Introduced by: Borough IManager
Drafted by: Finance Director
Introduced on: 12/01/2016
Adopted on: 12/01/2016
A RESOLUTIONOF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH IN SUPPORT
OF FULL FUNDING, FROM THE STATE OF ALASKA FOR THE SCHOOL BOND DEBT
REIMBURSEMENT AND STATE AID FOR CONSTRUCTION IN REGIONAL EDUCATION
ATTENDANCE49
WHEREAS, the State of Alaska has a constitutional responsibility to "maintain a system of
publlic schools" under Article VI I, section 1 of the Alaska Constitution; and
WHEREAS, since 1970 the State of Alaska has encouraged municipalities to bond for school
major maintenance projects by reimbursing municipalities with bonding authority for principal
and interest payments; and
WHEREAS, the Alaska Legislature has for decades provided major maintenance for rural
Regional Educational Attendance Area schools through appropriations in the annual capital
budget; and
WHEREAS, between 2006 and 2015, the Alaska Legislature determined 'that school projects
which passed the Department of Education & Early Development's criteria and were approved
by local voters would receive 70 percent debt reimbursement, and those that did not meet the
department's criteria would receive 60 percent reimbursement; and
WHEREAS, since 2010 the Alaska Legislature provided consistent funding parity for rural
schools' major maintenance needs by automatically funding major maintenance projects in
areas without the ability to bond with, a percentage of the school bond debt reimbursement
funding,- and
WHEREAS, relying on these programs and the State of Alaska's commitment to fund its
moral and constitutional obligations, Alaska municipalities have maintained schools for the
education of our state's most precious resource, our children; and
WHEREAS, Alaska municipalities issued bonds relying in good faith on the State of Alaska to
live up to its financial commitments to education; and
WHEREAS, in 2015 the Alaska Legislature responded to a difficult fiscal situation by placing a
five-year moratorium on any new projects being eligible for school bond debt reimbursement,
thus giving municipalities and voters across the state notice that bonds sold within the five-year
period would be the sole responsibility of local taxpayers; and
WHEREAS, in 2016 the Alaska Legislature recognized the State responsibility to honor past
project funding and appropriated funds to the municipalities for school debt reimbursement; and
Resolution No, FY2017-26
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WHEREAS, in 2016 Governor Bill Walker, in trying to address the budget deficit, cut 25,
percent of the funding for both municipal and rural schools from appropriation bills using his line -
item reduction power; and
WHEREAS, these reductions 'saved' the State of Alaska $40,703,819 out of an estimated
$3.4 billion deficit, or one point two percent, by shifting costs to local municipalities and by
leaving badly needed rural projects unfunded; and
WHEREAS, the Kodiak Island Borough lost $1,268,792 as a result of the line -item reduction
or approximately 20 percent of its total budget; and
WHEREAS, Alaska municipalities do not have the fiscal resources to close the State's
revenue gap; and
WHEREAS, the State of Alaska should not reach a long-term solution to its revenue problems
by ignoring its constitutional obligation to public education.
NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH that
Section 1. The Kodiak Island Borough calls on Governor Bill Walker to fully fund the FY1 8 and
future State of Alaska moral and constitutional obligation to public schools through both school
bond debt reimbursement and state aid for construction in Regional Education Attendance
Areas in his budget submittal to the Alaska State Legislature,
Section 2. The Kodiak Island Borough calls on the Alaska Legislature to continue its practice of
fully funding these moral and constitutional obligations to public schools as it has in the past.
Section 3. The Kodiak Island Borough calls on fellow municipalities and the Alaska Municipal
League to join in its support for funding school bond debt reimbursement and the State's new
construction and major maintenance obligations.
Section 4. The Kodiak Island Borough calls on Governor Bill Walker and the Alaska Legislature
to adopt an FY17 budget supplemental that reinstates full funding for this year's school debt
reimbursement payments.
Section 5. Effective Date. This resolution shall be effective immediately upon adoption
ADOPTED BY THE ASSEMBLY OF TAE &ODIAk ISLAA BORUILG_r,-,
THIS FIRST DAY OF DECEMBER, 2016
KODIAK ISLAND BOROUGH
Daniel A. Rohrer, Mayor
VOTES:
Ayes: Unanimous Vote
Kodiak Island Borough, Alaska Resolution No. FY2017-26
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