STAND. COM. REP. NO. 3307

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2409
                                        H.D. 1
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 2409, H.D. 1, S.D. 1, entitled: 

     "A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION FOR THE
     DEPARTMENT OF ACCOUNTING AND GENERAL SERVICES, INFORMATION
     AND COMMUNICATION SERVICES DIVISION,"

begs leave to report as follows:

     The purpose of this bill is to make an emergency
appropriation to the Department of Accounting and General
Services to be used in support of the State's information
processing services program.

     Your Committee finds that the $800,000 appropriation to the
Department is necessary to offset a shortfall in the Information
and Communication Services Division caused by an over-collection
of federal reimbursements in fiscal years 1996-1997 and 1997-
1998.  Your Committee finds that the over-collection prompted the
federal government to withhold current payments on federally
funded programs, which, in addition to the Division's increased
operating expenses, has caused the Division to fall behind in its
current budget by $800,000.

     Your Committee finds that this bill is necessary to address
the budget deficit while preventing the deletion of selected
statewide information technology services, as well as to pursue

 
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                                   STAND. COM. REP. NO. 3307
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action against the consultant who made the over-collection and
hold it accountable for the resulting loss.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
2409, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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