MEMORANDUM

TO: Pete Sprague, Assembly President

Members, Kenai Peninsula Borough Assembly

FROM: Ron Long, Assembly Member

DATE: September 4, 2003

SUBJECT: Resolution 2003-106, Supporting Senate Concurrent Resolution 12 (SCR 12) and Recommending Passage of SCR 12

Organized areas of the state are required to provide local support to education and other essential services; unorganized areas are not. Some of the areas not required to provide local support are unable to do so. A recent Local Boundary Commission (LBC) study of 19 Regional Educational Attendance Areas (REAA's) found seven that were capable of providing local contribution, and of those, four that met the population criteria and appear to have the capacity to operate as boroughs.

The Legislature acts as the Assembly in unorganized areas of the state. The State provides 100% funding for some services, particularly education, in the unorganized areas. Organization of the areas that can now meet the criteria would be a step towards equity in local contribution and would thereby relieve the state of some fiscal and administrative burden, and would result in a more equitable distribution of resources in the remainder of the state.

State law requires a local education contribution equal to 4 mils of the full and true value of taxable property within the organized boroughs, home rule and first class cities of the state. The State also prohibits administrative enclaves, or islands, and the grouping of dissimilar communities.

A series of public notices and comment periods are required with each petition for organization. The estimated timeline for approved areas is one year, with fiscal responsibility assumed over a four-year phase in period.

Three of the four Senators representing the Kenai Peninsula Borough are sponsors of this Concurrent Resolution, and have asked for our support. Since the Borough frequently requests State support for legislation, capital projects and administrative interpretation, it is only fitting that the borough similarly seriously consider requests from the State. This resolution is offered in hope of promoting a constructive discussion of this issue, and your consideration is appreciated.