STAND. COM. REP. NO. 104-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 1873
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Education, to which was referred H.B. No.
1873 entitled: 

     "A BILL FOR AN ACT RELATING TO EDUCATION,"

begs leave to report as follows:

     The purpose of this measure is to exempt federal and trust
funds of the Department of Education from the requirements of the
state budgetary allotment system.  This exemption provides more
fiscal autonomy to the Department of Education, and encourages
the Department to seek federal funding.  In the past, federal
funds intended to directly benefit education in Hawaii have had
to pass through the State's general fund.  This measure is
intended to create a direct route to Hawaii's schools for federal
funds, which should open the door to even more federal aid.

     Your Committee has amended this measure by inserting
language that protects the Department of Education's general fund
appropriations from being reduced when the Department receives
trust or federal funds in excess of the appropriation.

     The Department of Education, the Hawaii Congress of Parents,
Teachers, and Students, the Hawaii Business Roundtable, the
Hawaii State Teachers Association, and the Chamber of Commerce
supported the measure.  The Department of Budget and Finance
supported the intent of the measure.

     As affirmed by the record of votes of the members of your
Committee on Education that is attached to this report, your

 
 
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                                 Page 2

 
Committee is in accord with the intent and purpose of H.B. No.
1873, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 1873, H.D. 1, and
be referred to the Committee on Finance.

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



                                   ______________________________
                                   KEN ITO, Chair