STAND. COM. REP. NO. 1130

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 854
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Education and Technology, to which was
referred H.B. No. 854 entitled: 

     "A BILL FOR AN ACT RELATING TO EDUCATION,"

begs leave to report as follows:

     The purpose of this measure is to reduce the portion of the
general excise tax revenues deposited into the State Educational
Facilities Improvement Special Fund from $90,000,000 to
$45,000,000.

     Testimony in opposition to this measure was submitted by the
Department of Education and the Hawaii State Teachers
Association.

     Your Committee understands the objections that a reduction
in the portion of general excise tax revenues deposited into the
State Educational Facilities Improvement Special Fund will
greatly hinder the Department of Education's ability to clearly
state its preferred and priority projects.  However, due to the
economic hardships facing this State, cutbacks and fund
reductions are not uncommon and sometimes necessary.

     Your Committee believes that the Committee on Ways and Means
would be best able to determine the specific amount to be
deposited into the special fund, which would not only preserve
the State's commitment to quality education, but also be
financially prudent.  Accordingly, your Committee has amended
this measure to delete the specific amount to be deposited into

 
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                                   STAND. COM. REP. NO. 1130
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the State Educational Facilities Improvement Special Fund for the
purpose of further discussion in the Committee on Ways and Means.

     As affirmed by the record of votes of the members of your
Committee on Education and Technology that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 854, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as H.B. No. 854,
S.D. 1, and be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Education and
                                   Technology,



                                   ______________________________
                                   DAVID Y. IGE, Chair

 
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