STAND. COM. REP. NO. 1374

Honolulu, Hawaii

RE:    S.C.R. No. 188

       S.D. 2

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 S.C.R. No. 188, S.D. 1, entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE GOVERNOR TO ACCEPT THE RECOMMENDATIONS OF THE WORKING GROUP FORMED BY HAWAII'S CONGRESSIONAL DELEGATION TO DETERMINE THE MOST APPROPRIATE USES OF STATE FISCAL STABILIZATION FUND MONEYS, AND AUTHORIZE THE EXPENDITURE OF STATE FISCAL STABILIZATION FUND MONEYS IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE WORKING GROUP,"

begs leave to report as follows:

     The purpose of this measure is to request the Governor to accept the recommendations of the working group formed by Hawaii's congressional delegation to determine the most appropriate uses of State Fiscal Stabilization Fund moneys and to authorize the expenditure of State Fiscal Stabilization Fund moneys in accordance with the recommendations of the working group.

     The measure also discusses specific recommendations made by the state Department of Education and the University of Hawaii, as of March 31, 2009, regarding their agreement on the use of federal funds in a two-part proposal for State Fiscal Stabilization Fund moneys under the American Recovery and Reinvestment Act of 2009, Pub. L. 111-5.

     Your Committee received one written comment on this measure.  The written comment may be reviewed on the Legislature's website.

     Your Committee finds that the recent proposal by the Governor regarding the use of the State Fiscal Stabilization Fund moneys to offset the current budget deficit, rather than the intended use to advance educational reforms, has generated considerable controversy.  Your Committee recognizes the looming budget shortfalls facing the State but believes that using the State Fiscal Stabilization Fund moneys to offset the deficit would be in direct conflict with the requirements of the American Recovery and Reinvestment Act.  Therefore your Committee concurs with the subject matter Committee in full support of this Concurrent Resolution.

     Your Committee has amended this measure by making technical nonsubstantive amendments for purposes of clarity, consistency, and style.

     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 S.C.R. No. 188, S.D. 1, as amended herein, and recommends its adoption in the form attached hereto as S.C.R. No. 188, S.D. 2.

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

____________________________

DONNA MERCADO KIM, Chair