STAND. COM. REP. NO. 126

Honolulu, Hawaii

, 2023

RE: H.B. No. 960

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Education, to which was referred H.B. No. 960 entitled:

"A BILL FOR AN ACT RELATING TO THE SCHOOL FACILITIES AUTHORITY,"

begs leave to report as follows:

The purpose of this measure is to transfer $200,000,000 of general funds previously appropriated to the School Facilities Authority of the Department of Education to the School Facilities Special Fund.

Your Committee received testimony in support of this measure from the Office of the Lieutenant Governor, School Facilities Authority, University of Hawai‘i System, and one individual. Your Committee received testimony in opposition to this measure from one individual. Your Committee received comments on this measure from the Department of Budget and Finance.

Your Committee finds that Act 257, Session Laws of Hawaii 2022 (Act 257), appropriated funds to the School Facilities Authority to expand access to eligible children for pre-kindergarten. Your Committee further finds that transferring the funds previously appropriated to the School Facilities Authority, pursuant to Act 257, into the School Facilities Special Fund will provide flexibility and more time for the Authority to work with program partners to determine how best to serve Hawaii's children through the construction of pre-kindergarten classrooms.

Your Committee has amended this measure by:

(1) Changing the appropriation out of the School Facilities Special Fund to an unspecified amount;

(2) Changing its effective date to June 30, 3000; and

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

Your Committee respectfully requests your Committee on Finance, should it deliberate on this measure, to consider:

(1) An appropriation of $200,000,000 out of the School Facilities Special Fund; and

(2) The concerns raised in the testimony of the Department of Budget and Finance regarding the measure's potential adverse impact on the State's efforts to meet American Rescue Plan Elementary and Secondary School Emergency Relief program maintenance of effort requirements and that the present School Facilities Special Fund's allowable uses may not accommodate all of the developing plans to increase pre-kindergarten classroom capacity.

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 H.B. No. 960, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 960, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

JUSTIN H. WOODSON, Chair