STAND. COM. REP. NO. 1493

Honolulu, Hawaii

RE:    H.C.R. No. 76

       H.D. 1

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.C.R. No. 76, H.D. 1, entitled:

"HOUSE CONCURRENT RESOLUTION REQUESTING THE GOVERNOR NOT TO ADDRESS THE 2009 FISCAL YEAR BUDGET SHORTFALL BY REDUCING OR RESTRICTING THE DEPARTMENT OF EDUCATION'S AND UNIVERSITY OF HAWAII'S CURRENT APPROPRIATIONS,"

begs leave to report as follows:

     The purpose of this measure is to request the Governor not to address the 2009 fiscal year budget shortfall by reducing or restricting the Department of Education and the University of Hawaii's current appropriations.

     Prior to the hearing, your Committee circulated a proposed draft of H.C.R. No. 76, H.D. 1, S.D. 1, which requests the Senate President and the Speaker of the House of Representatives to establish a task force on reinventing government to examine the current operations and organization of state government and to make recommendations to the Legislature prior to the Regular Session of 2010 on making state government more efficient.

     Testimony in support of the proposed measure was submitted by the Chair of the Finance Committee of the House of Representatives and two private organizations.  Testimony in support of the proposed measure, with comments or suggested amendments, was submitted by one state department and one private organization.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

     Your Committee finds that our State is in an economic crisis, as a result of the global financial and economic crisis.  Although the Legislature has made efforts over the past two years to provide sustainable, responsible levels of funding and to anticipate and plan for such times as these, the State is nonetheless facing a $1,760,000,000 budget shortfall for the balance of fiscal year 2008-2009 and the biennium budget period if corrective action is not taken.

     Your Committee finds that, in these challenging times, a thorough and comprehensive review of the operations and organization of state government is in order and is in the best interest of the State, not only to address the present economic crisis, but also for the future.

     Your Committee has amended this measure as received by replacing its contents with the contents of the proposed draft of H.C.R. 76, H.D. 1, S.D. 1, which was circulated prior to this hearing and amending its title to read:

"HOUSE CONCURRENT RESOLUTION REQUESTING THE GOVERNOR NOT TO ADDRESS THE 2009 FISCAL YEAR BUDGET SHORTFALL BY REDUCING OR RESTRICTING THE DEPARTMENT OF EDUCATION'S AND UNIVERSITY OF HAWAII'S CURRENT 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 concurs with the intent and purpose of H.C.R. No. 76, H.D. 1, as amended herein, and recommends its adoption in the form attached hereto as H.C.R. No. 76, H.D. 1, S.D. 1.

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

____________________________

DONNA MERCADO KIM, Chair