Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committees on Education and Transportation, Military Affairs and Government Operations, to which was referred S.B. No. 567 entitled:

beg leave to report as follows:

The purpose of this measure is to require the Department of Education (DOE) to fully institute a performance-based budgeting system beginning with the 2007-2009 fiscal biennium. In addition, this measure also sets milestones for the DOE, and expands the purpose of the legislative analyst to include assisting with the evaluation of performance-based budgeting data submitted to the legislature.

Your Committees heard testimony in support of the measure from the DOE.

Your Committees find that it would be an onerous duplication of effort for the DOE to be required to submit a performance-based budget to the executive and the legislature in addition to the budget required under the current PPBS system. It is the intent of the Committees that only the latter will be required until the conversion to performance-based budgeting occurs in the 2007-2009 fiscal biennium.

Your Committees amended the measure to exempt the DOE from the relevant sections of Part IV of chapter 37, Hawaii Revised Statutes, as it migrates to performance-based budgeting.

As affirmed by the records of votes of the members of your Committees on Education and Transportation, Military Affairs and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 567, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 567, S.D. 1, and be referred to the Committee on Ways and Means.