STAND. COM. REP. NO. 1251

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1183
                                     S.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 Higher Education, to which was referred
S.B. No. 1183, S.D. 1, entitled: 

     "A BILL FOR AN ACT MAKING EMERGENCY APPROPRIATIONS FOR THE
     UNIVERSITY OF HAWAII,"

begs leave to report as follows:

     The purpose of this bill is to appropriate unspecified
amounts to the University of Hawaii to replace moneys that were
restricted in anticipation of a payroll lag that was not
implemented.

     Testimony in support of the bill was submitted by the
University of Hawaii and the University of Hawaii Professional
Assembly.  The University of Hawaii requested an insertion of an
amount totalling $6,163,501.

     Your Committee finds that the State restricted approximately
$6,200,000 from the University budget at the beginning of FY
1997-1998 in anticipation of a payroll lag authorized by the
State effective with the June 30, 1998 payday.  Although a
preliminary injunction in late FY 1997-1998 was granted by the
courts precluding implementation of the payroll lag with respect
to University faculty members, funds previously restricted for
the faculty payroll lag were not restored to the University's FY
1997-1998 allocation, creating a budget deficit of approximately
$6,200,000.  Your Committee further finds that if emergency
appropriations are not approved, the University will be unable to
meet its June 30, 1999 faculty payroll, creating a second

 
 
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budgetary shortfall of the same amount in the present fiscal
year.  Funds which were appropriated but subsequently restricted
are available in the state treasury.

     As affirmed by the record of votes of the members of your
Committee on Higher Education that is attached to this report,
your Committee is in accord with the intent and purpose of S.B.
No. 1183, S.D. 1, and recommends that it pass Second Reading and
be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Higher Education,



                                   ______________________________
                                   DAVID MORIHARA, Chair