STAND. COM. REP. NO. 453

Honolulu, Hawaii

RE: S.B. No. 1530

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Higher Education, to which was referred S.B. No. 1530 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:

(1) Require that the Board of Regents or the President of the University of Hawaii allocate general funds appropriated to the University of Hawaii to University of Hawaii program IDs in accordance with performance‑based outcomes relating to student achievement and degree attainment; and

(2) Require the President of the University of Hawaii to submit reports to the Legislature and propose at least three efficiency measures to the Director of Finance to produce a more effective budget.

Your Committee received comments on this measure from the Department of Budget and Finance and University of Hawaiʻi System.

Your Committee finds that the University of Hawaii volunteered to participate in a pilot project offered by the Department of Budget and Finance to develop efficiency measures for possible inclusion in various documents that are required to be prepared for the Executive Budget pursuant to Act 67, Session Laws of Hawaii 2015 (Act 67). Your Committee further finds that section 28 of Act 119, Session Laws of Hawaii 2015 (Act 119), required that the University of Hawaii allocate appropriated general funds to various programs in accordance with performance‑based outcomes relating to student achievement and degree attainment according to metrics and standards devised by the President of the University of Hawaii. Your Committee also finds that pursuant to Act 119, the University of Hawaii submitted a report to the Legislature and recommended that the performance‑based budget allocation requirement be made permanent. This measure makes permanent the provisions of Act 67 and Act 119 to ensure that the University of Hawaii operates efficiently for the benefit of students and the State.

As affirmed by the record of votes of the members of your Committee on Higher Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1530 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

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

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DONNA MERCADO KIM, Chair