STAND. COM. REP. NO. 1965

Honolulu, Hawaii

RE:    H.C.R. No. 217

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committees on Human Services and Public Housing and Intergovernmental and Military Affairs, to which was referred H.C.R. No. 217 entitled:

"HOUSE CONCURRENT RESOLUTION URGING THE PRESIDENT AND THE UNITED STATES CONGRESS TO ENACT LEGISLATION TO INCREASE, FOR SOCIAL SECURITY BENEFICIARIES, THE LEVELS OF PROVISIONAL INCOME, WHICH INCLUDE SOCIAL SECURITY BENEFITS, BY AN AMOUNT EQUAL TO THE FEDERAL COST OF LIVING ALLOWANCE GRANTED TO FEDERAL EMPLOYEES IN HAWAII,"

beg leave to report as follows:

     The purpose of this measure is to urge the President and the United States Congress to enact legislation to increase, for Social Security beneficiaries, the levels of provisional income, which include Social Security benefits, by an amount equal to the federal cost of living allowance granted to federal employees in Hawaii.

     Your Committees received testimony in support of this measure from the Diamond Head/Kapahulu/St. Louis Heights Neighborhood Board No. 5.

     Your Committees find that the federal tax on Social Security benefits for retirees living in Hawaii is inequitable because the cost of living in Hawaii is higher than on the United States mainland.  The federal government recognizes that Hawaii's cost of living is higher than that of other states due to its provision of a twenty five per cent cost of living allowance to active federal employees.  However, no such equitable recognition or provision is made for Social Security beneficiaries.  To this end, it is the intent of your Committees to support legislation requesting that the levels of provisional income be increased for social security recipients by an amount equal to the federal cost of living allowance granted to federal employees in Hawaii.

     As affirmed by the records of votes of the members of your Committees on Human Services and Public Housing and Intergovernmental and Military Affairs that are attached to this report, your Committees concur with the intent and purpose of H.C.R. No. 217, and recommend its adoption.

Respectfully submitted on behalf of the members of the Committees on Human Services and Public Housing and Intergovernmental and Military Affairs,

____________________________ LORRAINE R. INOUYE, Chair

____________________________ SUZANNE CHUN OAKLAND, Chair