Report Title:

Education; Dedicated Funding Source; GET; Education Special Fund

Description:

Requires a sum of GET revenues, equal to 2.5685% of the average general excise and use tax base of the State in the preceding three fiscal years, to be deposited in the state treasury in each succeeding fiscal year to the credit of the education special fund for the support of public schools.

THE SENATE

S.B. NO.

436

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to education.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"302A- Education special fund. (a) There is created in the treasury of the State the education special fund, into which shall be deposited a portion of all general excise tax revenues collected by the department of taxation under section 237-31.

(b) The education special fund shall be used solely for the support of public schools, including physical plant operations and maintenance (AGS 807) but excluding public libraries (EDN 407).

(c) Moneys in the education special fund shall be appropriated by the legislature in accordance with section 237-31(4)."

SECTION 2. Section 237-31, Hawaii Revised Statutes, is amended to read as follows:

"237-31 Remittances. All remittances of taxes imposed by this chapter shall be made by money, bank draft, check, cashier's check, money order, or certificate of deposit to the office of the department of taxation to which the return was transmitted. The department shall issue its receipts therefor to the taxpayer and shall pay the moneys into the state treasury as a state realization, to be kept and accounted for as provided by law; provided that:

(1) The sum from all general excise tax revenues realized by the State that represents the difference between $45,000,000 and the proceeds from the sale of any general obligation bonds authorized for that fiscal year for the purposes of the state educational facilities improvement special fund shall be deposited in the state treasury in each fiscal year to the credit of the state educational facilities improvement special fund;

(2) A sum, not to exceed $5,000,000, from all general excise tax revenues realized by the State shall be deposited in the state treasury in each fiscal year to the credit of the compound interest bond reserve fund; [and]

(3) A sum, not to exceed the amount necessary to meet the obligations of the integrated tax information management systems performance-based contract may be retained and deposited in the state treasury to the credit of the integrated tax information management systems special fund. The sum retained by the director of taxation for deposit to the integrated tax information [[]management[]] systems special fund for each fiscal year shall be limited to amounts appropriated by the legislature. This paragraph shall be repealed on July 1, 2004[.]; and

(4) A sum equal to 2.5685 per cent of the average general excise and use tax base of the State in the preceding three fiscal years, actual and estimated, shall be deposited in the state treasury in each succeeding fiscal year to the credit of the education special fund for the support of public schools, including physical plant operations and maintenance (AGS 807) but excluding public libraries (EDN 407). The sum shall be deposited in the state treasury to the credit of the education special fund in quarterly allotments. The director of taxation shall determine the average general excise and use tax base of the State. The legislature shall appropriate moneys in the education special fund according to:

(A) Support for each departmental school district, including school-based budgeting (EDN 100), comprehensive school support services (EDN 150), instructional support (EDN 200), district administration (EDN 350), school support (EDN 400), school community service (EDN 500), and physical plant operations and maintenance (AGS 807) but excluding state administration (EDN 300); and

(B) Support for state administration (EDN 300), excluding school-based budgeting (EDN 100), comprehensive school support services (EDN 150), instructional support (EDN 200), district administration (EDN 350), school support (EDN 400), school community service (EDN 500), and physical plant operations and maintenance (AGS 807).

This paragraph shall apply to fiscal years beginning after June 30, 2004."

SECTION 3. Section 302A-1301, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The department shall not transfer any funds [appropriated]:

(1) Appropriated under the school-based budgeting program EDN 100 of the state budget[,]; or

(2) Appropriated to a departmental school district pursuant to section 237-31(4),

except for unforeseeable circumstances that pose a threat to the health and safety of personnel and students, and subject to approval by the governor and notification to the legislature."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:

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