STAND. COM. REP. NO. 2424

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2575
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Education and Technology, to which was
referred S.B. No. 2575 entitled: 

     "A BILL FOR AN ACT RELATING TO THE UNIVERSITY OF HAWAII
     FACILITIES IMPROVEMENTS SPECIAL FUND,"

begs leave to report as follows:

     The purpose of this measure is to establish the University
of Hawaii Facilities Improvements Special Fund.

     The measure requires $15 million a year of general excise
tax revenues, general obligation funds, or a combination of both,
to be deposited into the fund to finance University repair and
maintenance projects.

     Testimony in support of the measure was received from the
University of Hawai'i.  Testimony in opposition to the measure
was received from the Department of Budget and Finance.  Comments
on the measure were received from the Tax Foundation of Hawaii.

     Your Committee finds that one of the greatest challenges
facing the University of Hawaii in the next decade is the
condition of its facilities, which provide the centerpiece around
which all other educational activities exist.  If the university
does not reinvest in its physical plant, it will operate with
substandard facilities and thereby compromise its institutional
mission and goals.


 
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                                   STAND. COM. REP. NO. 2424
                                   Page 2


     Your Committee agrees that the establishment of the
Facilities Improvements Special Fund will provide a consistent
revenue stream, which is needed for effective program operations
to address ongoing maintenance and reduce deferred maintenance
which has accumulated over the years.

     Your Committee made a technical, nonsubstantive amendment to
reflect proper statutory language.

     As affirmed by the record of votes of the members of your
Committee on Education and Technology that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 2575, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 2575,
S.D. 1, and be referred to the Committee on Ways and Means.

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



                                   ______________________________
                                   DAVID Y. IGE, Chair

 
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