SB2820 SD1

PART I

SECTION 1. The legislature finds that Hawaii's children deserve a quality education in a clean and safe environment. Many schools have leaky roofs, termite-infested floors, crumbling walls, and overheated classrooms. The legislature further finds that there is a compelling need to immediately fund the backlog of repair and maintenance projects in the public schools.

In 2001, the legislature appropriated funds to help mitigate the department of education's estimated $640,000,000 backlog of repair and maintenance projects. In 2007, the estimated backlog of repair and maintenance projects was $341,000,000, which included recurring major and minor repairs, ongoing cycle maintenance, service and contract maintenance, nonrecurring projects, and emergency repairs. Unfortunately, due in part to the governor's decision not to release $140,000,000 previously approved by the legislature during past legislative sessions for repair and maintenance projects for the department of education, the backlog remains and continues to increase. Since last year, the backlog has increased to approximately $420,000,000 and is expected to increase by an additional $75,000,000 during the upcoming fiscal year.

The administration has requested the general fund appropriation of $140,000,000 from the previous year be converted to bond funding that would potentially lower the backlog to $280,000,000.

The purpose of this part is to reduce the backlog of repair and maintenance projects within the public schools to a manageable level of $150,000,000. To meet this objective, this part authorizes the issuance of general obligation bonds and appropriates $230,000,000 for repair and maintenance projects of the department of education. This figure is comprised of the aforementioned $140,000,000, as well as $32,000,000, (the average amount necessary over the next four years to cover the existing backlog), and $58,000,000 (approximately three-fourths of the $75,000,000 of anticipated repair and maintenance for the upcoming year). Additional general fund requirements will also be needed to supplement the funds provided by this part.

SECTION 2. The director of finance is authorized to issue general obligation bonds in the sum of $230,000,000 or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2008-2009 for the purpose of funding the department of education's repair and maintenance projects.

The sum appropriated shall be expended by the department of education for the purposes of this part.

PART II

SECTION 3. The University of Hawaii's physical plant has accumulated a backlog of repairs and maintenance due to the lack of general funds. This project includes reroofing, mechanical, and electrical systems, renovations, resurfacing, repainting, and other improvements and project costs to upgrade facilities at all university campuses.

Facilities provide the centerpiece around which all other educational activities exist at higher education institutions. The total replacement value of all University of Hawaii facilities is estimated at $3,000,000,000. Therefore, it is imperative to reinvest in the university's physical plant to ensure that the physical infrastructure facilitates the mission of the institution.

The role of repair and maintenance is to maintain the physical infrastructure and facilities of our campuses so that they are functional, architecturally sound, aesthetically pleasing, and in compliance with building and safety codes to support quality instruction, research, student, and community services programs.

The current backlog of repair and maintenance deficiencies at the University of Hawaii totals $257,000,000. The purpose of this part is to reduce the backlog of repair and maintenance projects at the University of Hawaii to a manageable level. Each year an estimated $50,000,000 of projects are added to the repair and maintenance list. Repair and maintenance projects can be funded entirely with general funds or through a combination of general funds and bond funding.

The backlog of $257,000,000 less $75,000,000 totals $182,000,000. For a six-year plan this would reduce $30,000,000 per year for this portion of the plan. In addition, sixty per cent of the annual $50,000,000 of added annual projects would be $30,000,000 of bonds to be augmented by $20,000,000 of general funds. For the bond portion only, this measure proposes adding the first $30,000,000 to the second $30,000,000 for a total of $60,000,000.

SECTION 4. The director of finance is authorized to issue general obligation bonds in the sum of $60,000,000 or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2008-2009 for the purpose of reducing the backlog of repair and maintenance projects at the University of Hawaii system to manageable levels.

The sum appropriated shall be expended by the University of Hawaii for the purposes of this part.

SECTION 5. The sum appropriated under this part shall be in addition to any other funds that may be appropriated for the same purposes of this part.

PART III

SECTION 6. The appropriation made for the capital improvement projects authorized by this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2010, shall lapse as of that date.

SECTION 7. This Act shall take effect on July 1, 2008.

THE SENATE	S.B. NO.	2820
TWENTY-FOURTH LEGISLATURE, 2008		S.D. 1
STATE OF HAWAII