STAND. COM. REP. NO.2792
Honolulu, Hawaii
, 2002
RE: S.B. No. 2097
S.D. 2
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Sir:
Your Committee on Ways and Means, to which was referred S.B. No. 2097, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO FEDERAL IMPACT AID,"
begs leave to report as follows:
The purpose of this measure is to require the Department of Education to: request prior approval from the Governor to expend excess federal Impact Aid funds within a specific budget program identification number; prohibit use of excess funds to create new programs; and report to the Legislature the details of the amount of the excess receipts, including expenditures made from such funds.
Your Committee finds that the U.S. Congress appropriates federal impact aid and other federal funds directly to the Hawaii Department of Education, as reimbursements for education-related services provided to children of federal employees. Your Committee further finds that due to the incongruence of the state and federal budget cycles, the Hawaii Department of Education often receives additional federal funds beyond what is included in the General Appropriations Act and after adjournment of the regular session of the Legislature. Your Committee notes that under section 29-25, Hawaii Revised Statutes (HRS), the Department of Education is allowed to retain and expend these additional federal funds pursuant to approval by the Governor and without specific appropriation by the Legislature.
Upon further consideration, your Committee believes that section 29-25, HRS, confers expenditure authority without sufficient budgetary controls, including legislative oversight of these federal funds. Your Committee agrees that it is appropriate for the Legislature to exercise its oversight authority over federal Impact Aid and U.S. Department of Defense funds through the appropriation process.
Thus, your Committee has deleted the contents of this measure and substituted therefor the following:
(1) Amendment to section 40-89 to require the Comptroller to establish new accounts in each fiscal year for all federal Impact Aid and U.S. Department of Defense funds, and to further require that unencumbered cash balances shall be deposited into the current fiscal year accounts;
(2) Amendment to section 302A-1401, HRS, to: prohibit the expenditure of federal Impact Aid or U.S. Department of Defense funds, without legislative appropriation, and to require the Board of Education to submit semiannual reports to the Legislature providing amounts and dates funds were received, itemization of amounts expended and purposes of expenditures, and balances remaining at the end of each state fiscal year; and
(3) Repeal of section 29-25, HRS.
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. 2097, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2097, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
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____________________________ BRIAN T. TANIGUCHI, Chair |
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