STAND. COM. REP. NO. 1289

Honolulu, Hawaii

RE:    S.C.R. No. 158

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.C.R. No. 158 entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING A FISCAL AND COMPLIANCE AUDIT OF THE STATE EDUCATIONAL FACILITIES IMPROVEMENT SPECIAL FUND,"

begs leave to report as follows:

     The purpose and intent of this measure is to help ensure the proper use of state funds designated for public school facilities by requesting the Auditor to conduct a fiscal and compliance audit of the state educational facilities improvement special fund.

     Your Committee finds that a portion of all general excise tax revenues is deposited into the state educational facilities improvement special fund for public school facilities and to provide equipment and technology infrastructure to improve public schools and other Department of Education facilities.  Pursuant to section 36-32, Hawaii Revised Statutes, expenditures from the special fund are limited to projects authorized by the Legislature and subject to certain restrictions under state law.  Your Committee further finds that an audit of the special fund will help evaluate the management of the special fund and determine whether its uses comply with applicable laws.

     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. 158 and recommends its adoption.

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

____________________________

DAVID Y. IGE, Chair