Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Transportation and Government Operations, to which was referred H.B. No. 2273 entitled:

begs leave to report as follows:

The purpose of this measure is to make an emergency appropriation to increase the spending ceiling of the state risk management revolving fund to provide for unanticipated expenditures resulting from the May 7, 2005 fire at Kalaheo Elementary School.

Your Committee received testimony in support of this measure from the Department of Accounting and General Services and the Department of Education.

Due to the anticipated expenditures relating to the fire at Kalaheo Elementary School and increases in property insurance arising therefrom, the state risk management revolving is projected to have expenditures in excess of the amounts appropriated by the Legislature for the state risk management program for fiscal year 2005-2006.

Your Committee finds that an emergency appropriation as requested by this measure are essential to the prudent operation of the State's risk management program.

As affirmed by the record of votes of the members of your Committee on Transportation and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2273, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.