STAND. COM. REP. NO. 2204

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2474
                                        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 S.B. No. 2474 entitled: 

     "A BILL FOR AN ACT RELATING TO FEDERAL AID,"

begs leave to report as follows:

     The purpose of this bill is to prohibit federal impact aid
received by the Department of Education from being returned to
the general fund and to allow excess federal impact aid to be
spent by the Department of Education for the purposes of the
school-based budgeting program, EDN 100.

     Testimony in favor of the measure was received from the
Department of Education.

     Currently, because federal impact aid is deposited into the
general fund of the State, such aid acquired for education does
not always reach the public schools for which it was intended.
This bill helps to retain federal impact aid moneys for
education.  Although your Committee recognizes the Department of
Education's preference of not exclusively appropriating federal
impact aid only to EDN 100, we believe that any additional
federal impact aid should be spent as closely as possible for
EDN 100 programming purposes.

     Your Committee amended the measure to eliminate the
condition that would allow the legislature to return federal
impact aid to the general fund.


 
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                                   STAND. COM. REP. NO. 2204
                                   Page 2


     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 S.B. No. 2474, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 2474,
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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