Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committees on Education and Military Affairs and Labor, to which was referred H.B. No. 1865, H.D. 1, entitled:

beg leave to report as follows:

The purpose of this measure is to strengthen the operations of the Department of Education by creating various positions.

Your Committees received testimony in support of this measure from the Chamber of Commerce of Hawaii and the Hawaii Business Roundtable. Comments in support of parts of this measure were received from the Department of Education. Testimony supporting the intent of the measure were received from the Board of Education and the Hawaii Government Employees Association. Comments were received from the Office of the Governor.

Your Committees find that the testimony received on this measure was largely in support of the creation of a chief financial officer position, but questioned the creation of all other leadership positions.

Your Committees further find that per the Department of Education testimony requesting an amendment to the range of salaries offered for deputy superintendents, assistant superintendents, and complex area superintendents, the Legislature should reconsider the adequacy of salary ranges, and that the Committee on Ways and Means may consider adjusting section 302A-621, Hawaii Revised Statutes, to accommodate an appropriate chief financial officer salary.

Your Committees have amended this measure by omitting the creation of all other positions except for a chief financial officer position and an attendant secretary position, by making the effective date upon approval, and by making technical, nonsubstantive amendments.

As affirmed by the records of votes of the members of your Committees on Education and Military Affairs and Labor that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1865, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1865, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.