STAND. COM. REP. NO. 332-22

Honolulu, Hawaii

, 2022

RE: H.B. No. 2188

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Higher Education & Technology, to which was referred H.B. No. 2188 entitled:

"A BILL FOR AN ACT RELATING TO THE UNIVERSITY OF HAWAII TUITION AND FEES SPECIAL FUND,"

begs leave to report as follows:

The purpose of this measure is to authorize the use of funds from the University of Hawaii Tuition and Fees Special Fund to pay for salaries of University of Hawaii positions that have been authorized by the Legislature whose means of funding are the general revenues of the State.

Your Committee received testimony in support of this measure from the Department of Budget and Finance and University of Hawaii System.

Your Committee finds that the University of Hawaii Tuition and Fees Special Fund was established pursuant to Act 161, Session Laws of Hawaii 1995, to give the University of Hawaii greater control over the income generated by its tuition and the responsibility of how tuition revenue is used. Your Committee further finds that after the creation of the Special Fund, general fund appropriations for many University of Hawaii positions that were previously authorized to be funded by the general fund were reduced due to state budget and fiscal issues. To help address state budget shortfalls, an agreement was reached in 2005 between the Department of Budget and Finance and the University of Hawaii that allows a position that was authorized by the Legislature as a general funded position to have its salary paid in part or in whole by tuition revenue and the fringe benefits expense associated with that position to continue to be paid by the general fund. This measure recognizes the cost-sharing agreement as beneficial to the University of Hawaii and the State and establishes the cost-sharing agreement in statute.

As affirmed by the record of votes of the members of your Committee on Higher Education & Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2188 and recommends that it pass Second Reading and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Higher Education & Technology,

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GREGG TAKAYAMA, Chair