Alaska Senate moves toward fully funded school bond debt reimbursement
The Alaska Senate Finance Committee adopted its substitute to the House’s operating budget Monday afternoon with a few significant changes, one of which is the funding level for a state program designed to provide financial assistance to local governments for school construction and capital improvements.
The Senate committee substitute would fully fund the school bond debt reimbursement program at current state contribution levels, while the House-approved budget only funded the program at 50 percent of current levels. Gov. Mike Dunleavy had proposed to eliminate the program entirely.
The program has been the topic of debate throughout the session with local governments raising concerns over potential negative effects on local taxpayers as, without state funding, the financial brunt of school construction would fall on the backs of boroughs and municipalities.