SB2224 SSCR2232

 

STAND. COM. REP. NO.2232

Honolulu, Hawaii

, 2002

RE: S.B. No. 2224

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Education, to which was referred S.B. No. 2224 entitled:

"A BILL FOR AN ACT RELATING TO THE STATE EDUCATIONAL FACILITIES IMPROVEMENT SPECIAL FUND,"

begs leave to report as follows:

The purpose of this measure is to increase the amount of general excise tax revenue to be deposited into the State educational facilities improvement special fund.

Testimony in support of this measure was submitted by the Department of Education, Department of Accounting and General Services (DAGS), and General Contractors Association of Hawaii. The Tax Foundation of Hawaii submitted comments.

Section 36-32, Hawaii Revised Statutes (HRS), creates the State educational facilities special fund and section 237-31, HRS, requires that a portion of all general excise tax revenues be deposited into it. The fund is used solely to plan, design, acquire land for the construction of public school facilities, and provide equipment and technology infrastructure. The portion of the tax to be deposited is specified in section 237-31, HRS, relating to remittances of excise tax collections, which currently is the sum of all general excise tax revenues that represent the difference between $45,000,000 and the proceeds from the sale of any general bond obligations.

This measure raises the amount to $90,000,000 per fiscal year, thereby increasing the current minimum capital improvement project (CIP) funding level. The current CIP funding level of $45,000,000 jeopardizes timely implementation of CIP funded projects for new facilities, improvements, and upgrades.

As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2224 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

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

		____________________________ NORMAN SAKAMOTO, Chair