STAND. COM. REP. NO. 744

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.C.R. No. 40
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Transportation, to which was referred
H.C.R. No. 40 entitled: 

     "HOUSE CONCURRENT RESOLUTION CALLING FOR A TASK FORCE AND
     REQUESTING A STUDY TO REVIEW THE FISCAL NEEDS OF THE STATE
     HIGHWAY FUND AND REPORT ON DEVELOPING A REVENUE PLAN FOR THE
     HIGHWAYS DIVISION,"

begs leave to report as follows:

     The purpose of this House Concurrent Resolution is to have a
task force review the fiscal needs of the State Highway Fund and
to develop a revenue plan to maintain the solvency of the Fund.

     Your Committee finds that the Department of Transportation
has transferred large sums of money from the State Highway Fund
to the General Fund during the past four years, resulting in less
money for road maintenance.  Your Committee further finds that 
State roads are deteriorating due to the lengthening of the road
resurfacing program from a ten-year cycle to a thirteen-year
span, and that fifty-one percent of the bridges are in need of
repair or replacement.  Your Committee also finds that federal
funding for highways is decreasing, and that the Highways
Division must maintain a sufficient fund balance in the State
Highway Fund for cash flow purposes to provide advance funding
for the federal-aid reimbursement program, coupled with a static
flow of money from taxes and fees.

 
 
 
 
 
                                 STAND. COM. REP. NO. 744
                                 Page 2

 
     This proposed House Concurrent Resolution requests the
Department of Transportation to convene a Task Force to review
the fiscal needs of the State Highway Fund relative to its
ability to meet planned operating and capital improvement
expenditure requirements, and to develop a revenue plan that will
maintain the solvency of the Fund through the six-year planning
period in an efficient and equitable manner.

     Testimony in support of this House Concurrent Resolution was
received from the Department of Transportation.

     Your Committee has amended this House Concurrent Resolution
by requesting the Task Force to review the revenue policy, as
well as the fiscal needs of the State Highway Fund.  Your
Committee has further amended this measure by making technical,
nonsubstantive amendments for purposes of style, clarity, and
consistency.

     As affirmed by the record of votes of the members of your
Committee on Transportation that is attached to this report, your
Committee concurs with the intent and purpose of H.C.R. No. 40,
as amended herein, and recommends that it be referred to the
Committee on Finance, in the form attached hereto as H.C.R. No.
40, H.D. 1.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Transportation,



                                   ______________________________
                                   KENNETH T. HIRAKI, Chair