Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred H.B. No. 2423 entitled:

begs leave to report as follows:

The purpose of this bill is to enhance and improve county roadways by authorizing the use of monies from the State Highway Fund (Fund) for the counties' road systems.

Department of Transportation (DOT) and Mayor of the County of Hawaii testified in support of this bill.

During the 2004 Regular Session, DOT projected that the Fund would collect $174,000,000 by the end of FY 2003-2004. However, at the end of FY 2003-2004, the Fund had actually collected $182,000,000, resulting in an unanticipated surplus of $8,000,000.

In 2005, recognizing the deteriorating condition of our county roads, the Legislature enacted Act 178, Session Laws of Hawaii 2005, which appropriated $10,000,000 in subsidies to the counties for road work. This included $4,000,000 for the City and County of Honolulu, and $2,000,000 each for the other three counties. However, section 248-9, Hawaii Revised Statutes, authorizes the use of Fund monies only for the state highway system.

While the amount of monies proposed by this measure is minimal, your Committee believes that assisting the counties in resolving the many concerns of the community with regards to the condition of Hawaii's roads is a step in the right direction.

As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2423 and recommends that it pass Second Reading and be referred to the Committee on Finance.