STAND. COM. REP. NO. 2377

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2750
                                        




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. 2750 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 measure is to address an $800,000
deficit caused by a reduction in reimbursements by the federal
government for information and technology services in fiscal
years 2000 and 2001 and increases in operating costs.

     Testimony in support of the measure was received from the
Department of Accounting and General Services.

     Your Committee finds that although general funds were
appropriated for the information processing services program for
the period beginning July 1, 1999, to June 30, 2000, the State's
over-collection of federal reimbursements during fiscal years
1996-1997 and 1997-1998 has limited the billing, for fiscal year
1999-2000, of federally funded programs for information
technology services by the Information and Communication Services
Division of the Department of Accounting and General Services.
Consequently, it will face payroll deficits by April 2000.

     This measure provides $600,000 to address this critical
funding emergency, as well as $200,000 for a shortfall due to
increased operating costs.

 
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                                   STAND. COM. REP. NO. 2377
                                   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. 2750 and recommends that it pass Second Reading 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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