Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Education and Military Affairs, to which was referred S.B. No. 1093 entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the issuance of special purpose revenue bonds of no more than $30 million for Hualalai Academy.

Testimony in support of this measure was submitted by the Hawaii Association of Independent Schools and Hualalai Academy. Comments on this measure were also submitted by the Department of Budget and Finance.

Your Committee finds that the issuance of special purpose revenue bonds for Hualalai Academy serves a valuable public purpose by making much-needed educational facilities available to the students of Hawaii. Specifically, Hualalai Academy is planning to add a twelfth grade in 2006, and the school requires substantial improvements to campus facilities in order to better serve the student body population as well as the community as a whole. Your Committee notes that special purpose revenue bonds of this type do not take funding away from public education.

Your Committee has amended this measure by making a technical, nonsubstantive amendment.

As affirmed by the record of votes of the members of your Committee on Education and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1093, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1093, S.D. 1, and be referred to the Committee on Ways and Means.