FY2022-27 Backfunding School Bond DebtL
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Introduced by: Borough Assembly
Drafted by: Borough Clerk
Introduced on: 05/05/2022
Adopted on: 05/05/2022
KODIAK ISLAND BOROUGH
RESOLUTION NO. FY2022-27
A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH IN SUPPORT OF
BACK FUNDING FROM THE STATE OF ALASKA FOR THE SCHOOL BOND DEBT
REIMBURSEMENT AND STATE AID FOR CONSTRUCTION IN REGIONAL EDUCATION
ATTENDANCE AREAS
I WHEREAS, the State of Alaska has a constitutional responsibility to "maintain a system of
public schools" under Article VII, 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 placed a five -year moratorium on any new projects
being eligible for school bond debt reimbursement, and shifted the sole responsibility of
repayment to local taxpayers; and
WHEREAS, some municipalities, in an effort to mitigate deterioration of school facilities during
the capital funding moratorium, began allocating local tax revenues to provide funding for major
deferred maintenance school projects; and
Kodiak Island Borough, Alaska Resolution No. FY2022-27
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WHEREAS, in 2017, the Legislature honored past project funding and appropriated funds to
the municipalities for school debt reimbursement, as well as major maintenance funding for
schools in Regional Educational Attendance Areas; and
WHEREAS, in 2017-2022, the Alaska Legislature recognized the State responsibility to honor
past project funding and appropriated funds to the municipalities for school debt reimbursement;
and
WHEREAS, in 2017, the Governor line -item vetoed 25% of the funding for both municipal and
rural schools from appropriation bills; and
WHEREAS, in 2020, the Governor line item vetoed 50% of the funding; in 2021, the Governor
line item vetoed 100% of the funding; and in 2022, the shortfall of funding has reduced funding of
school debt to 36.866% of Legislative appropriation; and
WHEREAS, $220.9 million to the communities for school bond debt reimbursement was either
vetoed or short funded for the past several years; and
WHEREAS, the total shortfall for 2017 through 2022 for the Kodiak Island Borough totals
$12,871,878 and backfilling this shortfall would enable the KIB to proceed with deferred
maintenance projects; and
WHEREAS, the potential for future vetoes places great uncertainty of this program and burden
on municipalities.
NOW, THEREFORE, BE IT RESOLVED that the Kodiak Island Borough urges the Alaska
Legislature and the Governor to support the backfilling of $220.9 million of funding of School Bond
Debt Reimbursement from 2017 through 2022 that were vetoed and short funded.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS FIFTH DAY OF MAY, 2022
81 KODIAK ISLAN UGH
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85 ' William Robetts, Mayor
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VOTES:
Ayes: Arndt, Delgado, Griffin, Smiley, Smith Turner
Absent: Williams
ATTEST:
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Nova M. Javier, MMC, korough Clerk
Kodiak Island Borough, Alaska Resolution No. FY2022-27
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