STAND. COM. REP. NO. 999

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 Education, 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 request the Auditor to conduct a fiscal and compliance audit of the State Educational Facilities Improvement Special Fund.

     Your Committee received comments on this measure from the Department of Education.

     Your Committee finds that the State Educational Facilities Improvement Special Fund was created to earmark a portion of the general excise tax revenues for the Department of Education to provide assistance with needed repairs and maintenance to public school facilities.  The use of these special fund monies is limited to specific projects authorized by the Legislature and subject to certain restrictions under state law.  An audit of the State Educational Facilities Improvement Special Fund will be useful to determine whether the use of the funds is in compliance with state law.

     As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 158 and recommends that it be referred to the Committee on Ways and Means.

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

____________________________

JILL TOKUDA, Chair