STAND. COM. REP. NO. 2335

Honolulu, Hawaii

RE: S.B. No. 2602

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Education, to which was referred S.B. No. 2602 entitled:

"A BILL FOR AN ACT RELATING TO THE GENERAL FUND,"

begs leave to report as follows:

The purpose and intent of this measure is to require that excess funds in the University of Hawaii Tuition and Fees Special Fund at the end of the fiscal year shall lapse to the credit of the General Fund.

Your Committee received testimony in opposition to this measure from the University of Hawaii System, University of Hawaii Professional Assembly, and one individual.

Your Committee received comments on this measure from the Tax Foundation of Hawaii.

Your Committee finds that the State must be prepared to assume financial responsibility for critical programs that rely on federal support. Federal cuts, combined with broader economic trends, threaten the continuation of critical programs and projects that benefit the public. In order to bridge funding gaps, it is necessary for the State to identify and utilize idle funds for the public good. This measure will strengthen the State's fiscal stability and support the continuation of critical programs that rely on federal support.

Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

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. 2602, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2602, S.D. 1, and be referred to your Committee on Ways and Means.

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

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DONNA MERCADO KIM, Chair