Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred H.C.R. No. 57 entitled:

begs leave to report as follows:

The purpose of this concurrent resolution is to address decreased reserves in the Airports and Harbors Special Funds by requesting the Department of Transportation (DOT) to:

Matson Navigation Company testified in support of this measure. DOT supported the intent of this measure.

The State of Hawaii is faced with the challenge of funding priorities for harbor and airport projects to meet the growing demands for the use of these facilities due to Hawaii's expanding economy. To meet the demands of increased air service, cruise ship service, and special transportation systems such as the Hawaii Superferry and the City and County of Honolulu's proposed intra-island ferry, DOT has embarked on ambitious plans to modernize and remodel many of the airports and harbors throughout the islands to accommodate the increase in passengers, vessels, and cargo.

Your Committee notes that airport fees have not been adjusted since 1990 and harbor fees have not been adjusted since 1996 and is concerned that without an increase in these rates and fees, special fund reserves may fall below acceptable levels. This study will allow DOT, as well as the Legislature, to make fiscally prudent and sound decisions to meet the future demands of Hawaii's airports and harbors.

As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 57 and recommends its adoption.