STAND. COM. REP. NO. 3011

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2451
                                        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 Committees on Government Operations and Housing and
Education and Technology, to which was referred H.B. No. 2451,
H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO A REPAIRS AND MAINTENANCE
     SPECIAL FUND,"

beg leave to report as follows:

     The purpose of this measure is to finance future repairs and
maintenance of state facilities by:

     (1)  Creating a Repairs and Maintenance Special Fund; and

     (2)  Depositing into the Repairs and Maintenance Special
          Fund one and one-half percent of all general obligation
          bond and state educational facilities improvement
          special fund appropriations for capital improvements
          designated for the construction cost element.

     Testimony in support of the measure was submitted by the
Department of Accounting and General Services, the Department of
Education, and the Hawaii State Teachers Association.  Comments
were submitted by the Department of Budget and Finance.

     Your Committees have amended the measure by:

     (1)  Recasting the name and purpose of the proposed special
          fund to the School Priority Repairs and Maintenance

 
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          Special Fund that would be funded by general obligation
          bond and other revenues to provide a dedicated source
          of funding for high priority school facility repair and
          maintenance projects;

     (2)  Requiring the Comptroller to hold public informational
          hearings whenever a restriction of funds from the
          School Priority Repairs and Maintenance Special Fund is
          recommended; and

     (3)  Adding an unspecified general obligation bond issuance
          section and a general fund appropriation section to
          fund the School Priority Repairs and Maintenance
          Special Fund.

     Your Committees believe that the amended measure speaks to a
longstanding problem over the deficient amount of funds available
for school repair and maintenance projects.

     Your Committees also believe that in order for school repair
and maintenance projects to be completed in a timely manner,
moneys authorized by the Legislature for these purposes must be
fully released and at the disposal of the agency responsible for
carrying out the school repair and maintenance project.  The
Administration's practice of withholding funds contained in the
executive budget for such school repair and maintenance projects
severely curtails an agency's ability to meet its goals and
objectives, not to mention a school's ability to educate students
in a safe learning environment.  Therefore, your Committees
believe that it is inappropriate for the Governor to restrict
moneys for school repair and maintenance projects without
providing the public with an explanation as to why the funds are
to be restricted.

     As affirmed by the records of votes of the members of your
Committees on Government Operations and Housing and Education and
Technology that are attached to this report, your Committees are
in accord with the intent and purpose of H.B. No. 2451, H.D. 1,
as amended herein, and recommend that it pass Second Reading in
the form attached hereto as H.B. No. 2451, H.D. 1, S.D. 1, and be
referred to the Committee on Ways and Means.


 
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                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Government
                                   Operations and Housing and
                                   Education and Technology,



____________________________       ______________________________
DAVID Y. IGE, Chair                ROD TAM, Chair

 
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