Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1183
                                        S.D. 1

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Ways and Means, to which was referred S.B.
No. 1183 entitled: 


begs leave to report as follows:

     The purpose of this bill is to make emergency appropriations
of approximately $6,000,000 to the University of Hawaii system
for fiscal year 1998-1999 in order for the University to fulfill
its present fiscal year obligations.

     Your Committee finds that the university transferred about
$6,000,000 of its fiscal year 1997-1998 general fund encumbrances
to fiscal year 1998-1999 in order to avoid a budgetary deficit of
the same amount in the former fiscal year.  Consequently, the
transfer increased the university's obligations for the latter
fiscal year.

     Your Committee further finds that despite the fiscal and
managerial autonomy granted to it, the university has not been
able to cover the deficit on its own in the present fiscal year.
Unless legislative assistance is received, the university will
again have to replay its previous cost-shifting strategy,
transferring $6,000,000 of its fiscal year 1998-1999 obligations
to fiscal year 1999-2000 in order to avoid a second budgetary
shortfall of the same amount in the present fiscal year.  Your

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Committee finds that funds are available in the state treasury,
as these funds were appropriated but subsequently restricted.

     Your Committee has amended this measure by changing the
specific appropriation amounts to the campuses to blank amounts
for the purpose of continued discussion on the matter.  Your
Committee has also amended this measure by making technical
nonsubstantive amendments for the purpose of clarity and style.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
1183, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as S.B. No. 1183, S.D. 1.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,

                                 CAROL FUKUNAGA, Co-Chair

                                 ANDREW LEVIN, Co-Chair

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