STAND. COM. REP. NO.  1213

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1200

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1200 entitled:

"A BILL FOR AN ACT RELATING TO THE BUDGET OF THE OFFICE OF HAWAIIAN AFFAIRS,"

begs leave to report as follows:

     The purpose of this bill is to appropriate funds for the operating and capital improvement costs of the Office of Hawaiian Affairs (OHA) for fiscal biennium July 1, 2007, through June 30, 2009.

     OHA, the Hawaii Community Development Authority, Trust for Public Land, State Council of Hawaiian Homestead Associations, Earthjustice, Pacific American Foundation, Moanalua Gardens Foundation, Waikiki Health Center, Construction Training Center of the Pacific, Papa Ola Lokahi, College Connections Hawaii, Dyslexia Tutoring Center of Hawaii, Inc., Partners-in-Development Foundation, Native Hawaiian Legal Corporation, Waimanalo Hawaiian Homes Association, Na 'Opio Task Force of the Waimanalo Hawaiian Homes Association, Association of Hawaiian Civic Clubs, Waianae Hawaiian Civic Club, Kanu o ka Aina New Century Public Charter School, Halau Ku Mana Public Charter School, Waimanalo Jr. Midget Football, 'Ilio'ulaokalani Coalition, KAHEA: The Hawaiian Environmental Alliance, PA'I Foundation, God's Country Waimanalo, Hawaiian Community Development Board, Ke Ola Mamo, Papakolea Community Development Corporation, Kula no na Po'e Hawai'i, and several concerned individuals testified in support of this bill.

     The budget for OHA has remained relatively stable over the past several years, and this budget maintains that stability.  In addition to several small housekeeping transfers within its budget, OHA has also requested additional funding for two programs--the Multi Service Project for Alu Like, Inc., and Na Pua No'eau.

     Additional funding for these programs will enable OHA to provide additional services to its target population.  Specifically, Alu Like, Inc., provides essential social services, community economic development, business assistance, employment preparation, training, library services, and educational and childcare services.  Na Pua No'eau nurtures leadership qualities in native Hawaiian children and offers educational programs that better prepare Hawaiian youth for the future.

     Your Committee has provided full funding for all of OHA's operating-budget initiatives.

     After a fiscally responsible review of overall state expenditures, your Committee reduced by $200,000,000, the Administration's request to borrow $1,000,000,000 in additional general obligation bonds to finance state construction projects.  As a result of this $200,000,000 decrease, many difficult decisions had to be made.  Projects had to be prioritized, and not all projects could be funded as requested.  OHA requested that the $58,000,000 needed to construct a new office building and cultural center in Kakaako be shared between OHA and the State--with 50 percent coming from its trust funds and the other 50 percent from general obligation bond funds.  Your Committee supports the development of an office building for OHA and a cultural center to showcase and perpetuate the Hawaiian culture.  However, OHA has over $400,000,000 in trust funds at its disposal and receives annual payments from the State of at least $15,000,000.  Accordingly, your Committee has funded the project completely through the use of OHA's trust funds.

     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. 1200, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1200, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair