Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 1891, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to increase the availability of funds for repair and maintenance (R&M) projects at Hawaii's public schools by increasing the funds deposited into the State Educational Facilities Improvement Special Fund.

The Department of Education (DOE) supported this measure with amendments. The Department of Budget and Finance opposed this measure. The Department of Taxation and Tax Foundation of Hawaii offered comments.

Your Committee noted concerns raised by the DOE regarding the unnecessary provision of depositing funds specifically for bond-funded R&M and cash-funded repair. Accordingly, your Commitee has amended this bill by:

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1891, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1891, H.D. 2.