STAND. COM. REP. NO.2423
RE: S.B. No. 2097
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Your Committee on Education, to which was referred S.B. No. 2097 entitled:
"A BILL FOR AN ACT RELATING TO FEDERAL IMPACT AID,"
begs leave to report as follows:
The purpose of this measure is to provide that utilization of unappropriated excess federal funds received by the Department of Education requires approval of the governor and directs the Department of Education to report to the legislature on the utilization.
Testimony opposing this measure was received from the Department of Education and the Hawaii State Teachers Association.
Your Committee finds that federal impact aid and other federal education funds are specifically for the Department of Education and should not revert to the general treasury. Due to the federal budget cycle, the amount of federal education funds received may exceed the amounts appropriated by the General Appropriations Act. Current law provides that these excess federal funds remain with the Department of Education despite not being appropriated for expenditure by the Legislature. Your Committee reaffirms this policy.
Your Committee believes that the Department of Education should be allowed to utilize these excess federal funds. However, your Committee does believe that more accountability over the use of these funds is necessary. The purpose of this measure is to require the Department of Education to obtain the approval of the Governor prior to expending the excess federal funds, prohibit use of the funds to create new programs, and to require the Department of Education to report the expenditures to the Legislature.
Your Committee has amended this measure by:
(1) Further clarifying that the Department of Education needs the approval of the Governor prior to increasing the federal fund expenditure ceiling of a program identification number;
(2) Providing that the Governor may not approve increases to federal fund expenditure ceilings in amounts greater than the excess federal funds received by the Department of Education; and
(3) Making technical, nonsubstantive changes for purposes of style and clarity.
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. 2097, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2097, 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,
NORMAN SAKAMOTO, Chair