STAND. COM. REP. NO. 852________

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 747
                                     H.D. 1

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Finance, to which was referred H.B. No.
747, H.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill is to facilitate the transformation
of the State's accounting and budgeting systems to a performance-
based budgeting system by requiring three departments to develop
outcome measures for all of their programs as well as for
administratively attached agencies.

     The National Federation of Independent Business and Common
Cause Hawaii submitted testimony in support of this measure.  The
Department of Budget and Finance submitted testimony in support
of the intent of this measure.  The Performance Budgeting
Committee commented on this measure.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
747, H.D. 1, and recommends that it pass Third Reading.

                                 STAND. COM. REP. NO. 852________
                                 Page 2

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

                                   DWIGHT Y. TAKAMINE, Chair