STAND. COM. REP. NO.866

Honolulu, Hawaii

, 2001

RE: S.B. No. 493

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 493, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC SCHOOLS,"

begs leave to report as follows:

The purpose of this measure is to establish a public-private partnership for school maintenance and repair within the Department of Accounting and General Services to assist in the public-private funding of public school repair and maintenance projects.

In addition, this measure:

(1) Establishes the Hawaii school repair and maintenance trust fund as a separate fund of Hawaii 3R's (Repair, Remodel & Restore Hawaii Schools), a Hawaii nonprofit organization, to award grants or contracts for the repair and maintenance of public schools;

(2) Requires the public-private partnership for school maintenance and repair to assist Hawaii 3R's with the implementation of the trust fund by providing assistance in seeking sources of funding and in other relevant areas as requested by Hawaii 3R's;

(3) Allows licensed contractors and licensed professional engineers, architects, surveyors, and landscape architects to claim an income tax credit for contributions of in-kind services provided by them for the repair and maintenance of public schools;

(4) Requires the state Comptroller to submit reports of the progress of the public-private partnership for school maintenance and repair and the Hawaii school repair and maintenance trust fund to the Legislature prior to the convening of the Regular Sessions of 2002, 2003, and 2004;

(5) Appropriates the sum of $5,000,000 to the Hawaii school repair and maintenance trust for start-up and other program expenses, to be matched by private sector donations and contributions from the federal government; and

(6) Appropriates the sum of $41,772 for the salary of a staff person within the Department of Accounting and General Services to coordinate public and private efforts to repair and maintain public schools.

Your Committee received testimony in support of this measure from U.S. Senator Daniel K. Inouye, the United States Pacific Command, Department of Education, Department of Accounting and General Services, Chairperson of the Kauai County Council, America's Promise Hawaii, Hawaii Business Roundtable, Kauai Chamber of Commerce, Hawaii Island Economic Development Board, Kauai Economic Development Board, Maui Economic Development Board, Hawaii State Teachers Association, International Longshore & Warehouse Union Local 142, several businesses, and numerous public school parents, educators, and students.

The Department of Budget and Finance, Department of Taxation, and an architectural design company opposed this measure. The Tax Foundation of Hawaii submitted comments.

Regardless of how the physical state of many public school facilities got to be so deplorable, the simple fact is that more money is needed to fix these facilities. While your Committee does not want to perpetuate the problems that caused these school facilities to fall into their present state of disrepair, your Committee is also aware that many of these facilities are literally falling apart at this moment. In this case, a "good" plan executed just in time is better than a "perfect" plan executed too late.

Your Committee has amended this measure by making technical nonsubstantive changes for purposes of clarity and style.

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 S.B. No. 493, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 493, S.D. 2.

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

____________________________

BRIAN T. TANIGUCHI, Chair