STAND. COM. REP. NO. 3027

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2492
                                        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 Education and Technology, to which was
referred H.B. No. 2492, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO EDUCATION,"

begs leave to report as follows:

     The purpose of this measure is to allow the Department of
Education (DOE) to retain and carryover up to five per cent of
the appropriations not only for EDN 100, School-Based Budgeting,
but also for EDN 150, Comprehensive School Support Services
Program.

     In addition, the measure:

     (1)  Requires the DOE to submit a report to the Director of
          Finance and the Legislature identifying the total
          amount of funds to be carried over into the next fiscal
          year;

     (2)  Requires any appropriation retained to be used
          exclusively for EDN 100 and EDN 150; and

     (3)  Allows the DOE to transfer, upon the Governor's
          approval, funds from EDN 100 to supplement EDN 150.

     Testimony in support of the measure was received from the
Department of Education and HSTA.


 
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     Your Committee finds that EDN 150 was created in 1999 to
facilitate reporting and tracking of expenditures for special
education and the Felix Consent Decree.  This measure will ensure
that there are sufficient resources to meet current special
education needs in Hawaii.  By permitting retention of
appropriations to EDN 150, your Committee intends to distribute
as much money directly to schools as possible.

     Upon further consideration your Committee amended the
measure to:

     (1)  Limit funds retained by EDN 150 to appropriations that
          have been distributed to the schools;

     (2)  Remove the section that allowed the DOE to transfer
          funds from EDN 100 to supplement EDN 150; and

     (3)  Make technical, nonsubstantive amendments for clarity
          and style.

     As affirmed by the record of votes of the members of your
Committee on Education and Technology that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 2492, H.D. 1, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as
H.B. No. 2492, H.D. 1, S.D. 1, and be referred to the Committee
on Ways and Means.

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



                                   ______________________________
                                   DAVID Y. IGE, Chair

 
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