STAND. COM. REP. NO.1426

Honolulu, Hawaii

, 2003

RE: H.B. No. 510

H.D. 2

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 510, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO GOVERNMENT,"

begs leave to report as follows:

The purpose of this measure is to repeal Part II of Act 90, Session Laws of Hawaii 2001, that provides authorization for the State and counties to engage in privatization.

Your Committee has replaced the contents of the bill with provisions to raise the general excise tax by one-half per cent and appropriating the proceeds to finance necessary programs in lower and higher education.

Since the beginning of the Regular Session of 2003, your Committee has remained firm in its commitment and support of education. Despite a fragile economy that is tied to world events, especially the Iraqi War, your Committee is convinced, more than ever, that now is the time for the State to move boldly forward and provide the financing sorely needed by public education in the State.

Your Committee finds that the proceeds derived from the increase in the general excise tax will provide $108 million to lower education and $12 million to higher education in each fiscal year of 2004-2005 and 2005-2006. Of the $108 million designated for lower education, it is the intent of your Committee that these funds be allocated on a per pupil basis which should cost approximately $45 million per year.

The balance is appropriated as follows:

(1) School repair and maintenance $10,000,000;

(2) The 3Rs program $ 100,000;

(3) High school coaches $ 500,000;

(4) Teacher tuition $ 200,000;

(5) ISPED clerks $ 3,000,000;

(6) Safety officer training $ 100,000;

(7) Business managers $ 800,000;

(8) Nation board certified teachers

($5,000/year bonus) $ 375,000;

(9) Teacher standard board $ 450,000;

    (10) Security officers $ 2,000,000;

    (11) Teacher retention $ 4,475,000;

    (12) EDN100-500 budget cut restoration $ 3,000,000;

    (13) EDN407 budget cut restoration $ 1,000,000;

    (14) EDN400 school custodial services $ 3,000,000.

The $5.9 million for higher education is appropriated as follows:

(1) College of Tropical Agriculture and

Human Resources $ 500,000;

(2) College of Education for 23.5 positions $ 1,400,000;

(3) School of Nursing $ 1,200,000;

(4) Department of Information and

Computer Sciences $ 1,000,000;

(5) UOH 100 budget cut restoration $ 1,800,000.

Your Committee is confident that these appropriations will ensure the academic integrity of lower and higher education in the State and will provide the quality education demanded and deserved by the taxpaying public.

To offset the increase in the general excise tax, your Committee has added a food tax credit that is based on a taxpayer's income and increased the standard deduction. Your Committee has also provided a repeal date of December 31, 2013.

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 H.B. No. 510, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 510, H.D. 2, S.D. 2.

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

____________________________

BRIAN T. TANIGUCHI, Chair