| Eldon Mulder, Co-Chair Kim Elton Richard Foster Jeannette James Beverly Masek Gail Phillips |
................... |  |
................... | Tim Kelly, Co-Chair |
Alaska State Legislature
Deferred Maintenance Task Force
Building Alaska for the 21st
Century
Capitol Building, Room 501 · Juneau,
AK 99801 · Phone (907) 465-2647 · Fax (907) 465-3518
| Eldon Mulder, Co-Chair Kim Elton Richard Foster Jeannette James Beverly Masek Gail Phillips |
................... | |
................... | Tim Kelly, Co-Chair |
Building An Alaska for
the 21st Century
Bonding Proposal Passes
Muster
Juneau -- The Alaska Legislature's Deferred Maintenance Task Force this week received preliminary indication from an independent bond counsel that proposed legislation to finance nearly $1.5 billion dollars worth of deferred maintenance projects is feasible.
"This word from the bond counsel means we've answered a large question mark in getting this legislation enacted," said Task Force Co-Chair Representative Eldon Mulder. "We've heard from dozens of groups and hundreds of individuals over the past eight months identifying the long-term deferred maintenance problems in the state. We're proposing a six bill package with a six-year financing plan which will not only fix existing problems, but will go a long way toward preventing this problem in the future," Mulder said.
In a January 6, 1998 letter to the Deferred Maintenance Task Force, the firm of Orrick, Herrington, and Sutcliff, of San Francisco, says that, with minor changes to the proposed legislation, the interest from such bonds would be exempt from federal income tax and that the revenue bonds could be used.
"We've taken a step-by-step approach to resolving this potential problem," said Task Force Co-Chair Senator Tim Kelly. "We've prepared a 150-plus page report that identifies the problems, established priorities by year and by maintenance category, and have created a financial mechanism that allows the Legislature to stick to its five-year plan to close the state's fiscal gap. What remains is some technical revisions to the legislation, approval by the full Task Force and submittal of the package to the Legislature for considerations," Kelly said.
The legislation will be introduced in the House and Senate by their respective Rules Committees, at the request of the Task Force.
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