Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Labor, to which was referred S.B. No. 2921 entitled:

begs leave to report as follows:

The purpose of this measure is to make an emergency appropriation of $7,417,636 to fund collective bargaining increases, which became effective in January 2003, for Department of Education employees.

Testimony in support of this measure was submitted by the Department of Education and the Hawaii State Teachers Association.

Your Committee finds that a four and three per cent wage increase was negotiated for bargaining unit (1), effective January 1, 2003, and bargaining unit (5), effective January 21, 2003, respectively. Your Committee further finds that there was an omission from the governor's fiscal biennium 2003-2005 budget proposal of the necessary funding for these increases. Therefore, your Committee determines that an emergency appropriation is necessary to correct this error to ensure that for fiscal year 2003-2004 adequate funds are available to compensate the employees of bargaining units (1) and (5) accordingly.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2921 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.