STAND. COM. REP. NO. 1553-24

Honolulu, Hawaii

, 2024

RE: H.C.R. No. 140

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committees on Housing and Water & Land, to which was referred H.C.R. No. 140 entitled:

"HOUSE CONCURRENT RESOLUTION URGING THE OFFICE OF PLANNING AND SUSTAINABLE DEVELOPMENT TO DEVELOP A FISCAL ANALYSIS METHODOLOGY TO COMPARE INFRASTRUCTURE AND SERVICE COSTS WITH THE FINANCIAL CONTRIBUTIONS OF A PARTICULAR DEVELOPMENT TO DETERMINE WHETHER A SPECIFIC PROJECT OR PARTICULAR ZONING CLASSIFICATION WILL CONTRIBUTE TO THE LONG-TERM FISCAL SUSTAINABILITY OF THE STATE AND COUNTY,"

beg leave to report as follows:

The purpose of this measure is to urge the Office of Planning and Sustainable Development to develop a fiscal analysis methodology to compare infrastructure and service costs with the financial contributions of a particular development to determine whether a specific project or particular zoning classification will contribute to the long-term fiscal sustainability of the state and respective county.

Your Committees received testimony in support of this measure from one individual. Your Committees received comments on this measure from the Office of Planning and Sustainable Development.

Your Committees find that low density developments consistently cost more in infrastructure maintenance costs and general service expenditures than they provide in tax revenue. This deficit continues to worsen, and new developments continue to be planned without accounting for future maintenance, infrastructure costs, and service costs. Your Committees believe that maintaining fiscally sustainable development will help the State build infrastructure, invest in vibrant public spaces, and house the State's growing population. However, your Committees note that in order to do this, proposed developments should be judged, in part, based on their long-term fiscal cost to the State.

Your Committees have amended this measure by:

(1) Urging the Office of Planning and Sustainable Development to develop a scope of work or requests for proposals for bidders to perform their own analysis and methodology to determine the long-term fiscal sustainability of a development, rather than urging the Office to develop a fiscal analysis methodology;

(2) Urging bidders, rather than the Office of Planning and Sustainable Development, to develop a visual mapping analysis and consider a methodology that estimates ongoing maintenance costs and the future replacement costs of infrastructure;

(3) Amending the recipients of certified copies of this measure;

(4) Amending its title in accordance with its amended purpose; and

(5) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the records of votes of the members of your Committees on Housing and Water & Land that are attached to this report, your Committees concur with the intent and purpose of H.C.R. No. 140, as amended herein, and recommend its adoption in the form attached hereto as H.C.R. No. 140, H.D. 1.

Respectfully submitted on behalf of the members of the Committees on Housing and Water & Land,

____________________________ LINDA ICHIYAMA, Chair

____________________________ LUKE A. EVSLIN, Chair