Report Title:

DOE; Repair and Maintenance; GO Bonds; Majority Package

Description:

Authorizes the issuance of general obligation bonds to fund department of education repair and maintenance projects.

THE SENATE	S.B. NO.	1669
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII

A BILL FOR AN ACT

relating to education.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     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 $421,000,000, and is expected to increase by an additional $75,000,000 during the upcoming fiscal year.

     It is the intent of the legislature to reduce the backlog of repair and maintenance projects within the public schools to a manageable level.  To meet this objective, this Act authorizes the issuance of general obligation bonds and appropriates $155,000,000 annually through fiscal year 2012 for repair and maintenance projects of the department of education.  At the rate of $155,000,000 annually, the backlog will be reduced after three years, as follows:

                   FY2010        FY2011        FY2012

Current backlog  $421,000,000  $341,000,000  $261,000,000

Annual increase   $75,000,000   $75,000,000   $75,000,000

GO funding     ($155,000,000) ($155,000,000) ($155,000,000)

Remaining R&M    $341,000,000  $261,000,000  $181,000,000

     The purpose of this Act is to authorize the issuance of general obligation bonds and appropriate the revenues derived therefrom to reduce the backlog of repair and maintenance projects of the department of education.

     SECTION 2.  The director of finance is authorized to issue general obligation bonds in the sum of $           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 2009-2010 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 Act.

     SECTION 3.  The director of finance is authorized to issue general obligation bonds in the sum of $           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 2010-2011 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 Act.

     SECTION 4.  The director of finance is authorized to issue general obligation bonds in the sum of $           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 2011-2012 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 Act.

     SECTION 5.  The appropriations 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, 2012, shall lapse as of that date.

     SECTION 6.  If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act, which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 7.  This Act shall take effect on July 1, 2009.

INTRODUCED BY:

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