STAND. COM. REP. NO. 763-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 1873
                                     H.D. 2




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

Sir:

     Your Committee on Finance, to which was referred H.B. No.
1873, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO EDUCATION,"

begs leave to report as follows:

     The purpose of this bill is to provide the Department of
Education (DOE) with the authority and incentive to pursue
additional resources to improve Hawaii's public schools by:

     (1)  Exempting DOE's federal and trust funds from the
          requirements of the state budgetary allotment system;
          and

     (2)  Prohibiting general fund offsets in the event that
          federal or trust fund receipts are greater than
          appropriations.

     The Hawaii State Teachers Association, the Hawaii Business
Roundtable, and the Hawaii Association of Realtors testified in
support of this bill.  The DOE and the Department of Budget and
Finance supported the intent of this measure.

     Your Committee has amended this bill to correct technical
drafting errors.

     As affirmed by the record of votes of the members of your
Committee on Finance 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, H.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as H.B. No. 1873, H.D.
2.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair