Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2275 entitled:

begs leave to report as follows:

The purpose of this measure is to make an emergency appropriation for fiscal year 2005-2006 to cover statewide budgetary shortfalls in electricity payments for facilities managed by the Department of Accounting and General Services.

Your Committee understands that an emergency appropriation is needed to address a $1,276,000 deficit in electricity payments for facilities managed by the Department of Accounting and General Services. Without the emergency appropriation, the Department of Accounting and General Services must defer payment of electricity bills for these facilities, starting in May 2006. The deficit is caused by unanticipated increases in statewide electricity rates attributed to the rise in world oil prices. Electricity consumption for these facilities has remained flat or decreased.

Additionally, your Committee understands that the University of Hawaii system requires an emergency appropriation to address a $6,400,000 deficit in electricity payments for its facilities. This shortfall is also due to unanticipated increases in statewide electricity rates. The University of Hawaii notes, in this regard, that electricity costs for fiscal year 2005-2006 are estimated to be approximately twenty-four per cent higher than the electricity costs for the previous fiscal year.

Your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2275, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2275, S.D. 1.