STAND

STAND. COM. REP. NO.889-02

Honolulu, Hawaii

, 2002

RE: S.B. No. 2097

S.D. 2

H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Education, to which was referred S.B. No. 2097, S.D. 2, entitled:

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

begs leave to report as follows:

The purpose of this bill is to place under legislative oversight, federal Impact Aid and U.S. Department of Defense funds (Federal Funds) received by the Department of Education (DOE).

Specifically, this bill:

(1) Requires the Comptroller to establish new accounts in each fiscal year for all Federal Funds and requiring that unencumbered cash balances be deposited into the current fiscal year accounts;

(2) Prohibits the expenditure of the Federal Funds without legislative appropriation;

(3) Requires the Board of Education to submit semiannual reports to the Legislature that include amounts and the date the Federal Funds were received, itemization of amounts expended and its purpose, and the balance remaining at the end of the fiscal year; and

(4) Repeals the Governor's authority to authorize DOE to expend the Federal Funds.

DOE commented on this bill. The Hawaii State Teachers Association opposed this measure.

Your Committee finds that it is appropriate to exercise legislative oversight over the Federal Funds, especially during the State's current severe revenue shortfalls and budget constraints.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 2020, to promote further discussion on this important matter; and

(2) Making technical, nonsubstantive amendments for purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2097, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2097, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

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

		____________________________ KEN ITO, Chair