STAND. COM. REP. NO. 2635

Honolulu, Hawaii

RE:    S.B. No. 2959

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 2959 entitled:

"A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION FOR ELECTRICITY, SEWER, REFUSE, AND INSURANCE PREMIUM PAYMENTS,"

begs leave to report as follows:

     The purpose of this measure is to make an emergency appropriation to pay for a projected Aloha Stadium deficit in fiscal year 2007-2008.

     Specifically, this measure appropriates $271,852 from the Stadium Special Fund to pay for increases in electricity, sewer, and refuse costs and increased insurance payments for Aloha Stadium.

     Your Committee received testimony in support of this measure from the Department of Accounting and General Services.

     Your Committee is concerned that the administration is not using best estimates when crafting the executive budget.  As the State Comptroller acknowledged in his testimony to the Committee, world oil prices have been steadily increasing, obviously causing electricity rates to go up.  Similarly, for the past few years, it has been clear that there would be increases in sewer fees on the island of Oahu.  Failure to use such common knowledge when estimating and budgeting for electricity, sewer fees, and similar costs, has resulted in annual requests for emergency appropriations.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2959 and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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ROSALYN H. BAKER, Chair