STAND. COM. REP. NO. 50

Honolulu, Hawaii

RE:    S.B. No. 238

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Education, to which was referred S.B. No. 238 entitled:

"A BILL FOR AN ACT RELATING TO THE UNIVERSITY OF HAWAII,"

begs leave to report as follows:

     The purpose and intent of this measure is to allow the University of Hawaii to retain up to five percent of its appropriated general funds and carry it over to the subsequent fiscal year.

     Your Committee received testimony in support of this measure from the University of Hawai‘i System.

     Your Committee finds that allowing the University of Hawaii to retain and carry over up to five percent of its appropriated general funds will result in greater efficiency in the expenditure of these funds and avoid a lapse of funds.

     Your Committee has amended this measure by:

     (1)  Clarifying that the carried over funds are to be available to the University of Hawaii in addition to subsequent fiscal year appropriations;

     (2)  Clarifying that the retention of funds shall not be used as the sole basis for reducing the University of Hawaii's future budget requirements; and

     (3)  Requiring the University of Hawaii to submit an annual report to the Legislature on the status and amount of funds carried over to the subsequent fiscal year.

     As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 238, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 238, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Education,

____________________________

JILL TOKUDA, Chair