THE SENATE

S.B. NO.

2279

TWENTY-FIFTH LEGISLATURE, 2010

S.D. 1

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 of the department of education, the backlog remains and continues to increase.  In 2008, the backlog increased to approximately $421,000,000 and declined slightly to $347,000,000 by September of 2009, but is expected to increase by an additional $75,000,000 during upcoming fiscal years.

     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  $347,000,000  $267,000,000  $187,000,000

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    $267,000,000  $187,000,000  $107,000,000

     The purpose of this part 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 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 part.

     SECTION 3.  The appropriation made for the capital improvement projects authorized by this part shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriation in section 2 unencumbered as of June 30, 2012, shall lapse as of that date.

     SECTION 4.  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 5.  This Act shall take effect on July 1, 2010.

 



 

Report Title:

DOE; Repair and Maintenance; GO Bonds

 

Description:

Authorizes the issuance of general obligation bonds to fund department of education repair and maintenance projects.  (SD1)

 

 

 

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