STAND. COM. REP. NO. 2077

Honolulu, Hawaii

RE:    S.B. No. 3062

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Human Services and Public Housing, to which was referred S.B. No. 3062 entitled:

"A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION TO THE HAWAII PUBLIC HOUSING AUTHORITY,"

begs leave to report as follows:

     The purpose of this measure is to make an emergency appropriation from general funds for fiscal year 2007-2008 to:

     (1)  Repay the Department of Budget and Finance for a loan made to cover payroll and risk management costs for liability insurance for fiscal year 2006-2007; and

     (2)  Address a critical funding shortfall for operational costs of public housing programs for fiscal year 2007-2008.

     Testimony in support of this measure was received from the Hawaii Public Housing Authority (HPHA) and a member of the Kalanihuia Resident Association.

     Your Committee finds that there are a number of factors contributing to the shortfall at HPHA.  Inconsistent levels of federal funding, the reorganization of the former Housing and Community Development Corporation of Hawaii into two entities in 2006, and the ongoing critical infrastructure needs of public housing statewide have all been factors.

     Your Committee also finds that the reorganization, and the resulting HPHA structure in particular, offers the State an opportunity to focus its efforts on meeting the needs of the public housing program.  While HPHA faces a formidable challenge, it is also now able to focus the efforts of its hardworking staff in a more meaningful and successful manner.

     Your Committee is strongly supportive of safe, decent, affordable housing for Hawaii's disadvantaged.  Your Committee also recognizes that this is not an easy goal to meet, and that much depends on retaining and attracting the best possible people to work at HPHA.  This is a tough job, and good staff can make or break a program.  We acknowledge their work and we must support them.  In addition to the funding in this measure, your Committee urges the Department of Budget and Finance to look closely at HPHA and its long term goals, and to provide the staffing necessary for the agency to meet these goals successfully.  While we understand the importance of fiscal prudence, the welfare of our neediest citizens must have equal consideration.

     Your Committee has amended this measure to make technical, nonsubstantive amendments for the purpose of clarity.

     As affirmed by the record of votes of the members of your Committee on Human Services and Public Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3062, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3062, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Human Services and Public Housing,

____________________________

SUZANNE CHUN OAKLAND, Chair