Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Education, to which was referred H.B. No. 2815 entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the issuance of general obligation bonds to take advantage of the Qualified Zone Academy Bond Program.

Your Committee received testimony in support of the measure from the Department of Education.

Your Committee finds that the Qualified Zone Academy Bond Program, authorized under the Taxpayer's Relief Act of 1997, would establish qualified zone academies in empowerment zones, enterprise communities, or schools serving low- or moderate-income students as determined by the National School Lunch Act. Such a program could be a valuable means of supporting the educational needs of an underserved segment of the student population.

Your Committee further finds that the taxable status of these bonds, with a zero interest rate, would provide the State with very favorable leverage for its current cash. These fiscal benefits outweigh the effort needed to attain them.

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 H.B. No. 2815, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.