Bill Text: HI SB458 | 2013 | Regular Session | Amended

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Bill Title: State Educational Facilities Improvement Special Fund

Spectrum: Partisan Bill (Democrat 12-0)

Status: (Passed) 2013-06-25 - Act 157, on 6/21/2013 (Gov. Msg. No. 1260). [SB458 Detail]

Download: Hawaii-2013-SB458-Amended.html

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STAND. COM. REP. NO. 791

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 458

       S.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 458, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO THE STATE EDUCATIONAL FACILITIES IMPROVEMENT SPECIAL FUND,"

 

begs leave to report as follows:

 

     The purpose of this measure is to modify the funding resources for public school facilities by repealing the state educational facilities improvement special fund on July 1, 2023.

 

In addition, this measure facilitates the repeal of the special fund by:

 

     (1)  Immediately repealing the required deposit of a portion of general excise tax revenues into the special fund;

 

     (2)  Limiting expenditures from the special fund to projects authorized by the Legislature for fiscal years ending prior to July 1, 2014; and

 

     (3)  Providing that lease payments made from the special fund pursuant to financing agreements shall only be made for financing agreements entered into prior to July 1, 2013.

 

     Your Committee received written comments in support of this measure from the Department of Budget and Finance.

 

     Your Committee received written comments on this measure from the Tax Foundation of Hawaii

 

     Your Committee finds that the state educational facilities improvement special fund was established by Act 368, Session Laws of Hawaii 1989, and was designed to provide a consistent source of funding for public school facilities from general excise tax revenues and proceeds from the sale of general obligation bonds.  Over the years, capital improvement projects for public school facilities have generally been funded by moneys in the special fund that are subsequently fully capitalized through the issuance of general obligation bonds.  In light of this arrangement, this measure repeals the special fund to allow the Department of Education’s capital improvement projects to be funded directly with general obligation bonds.

 

     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. 458, S.D. 1, and recommends that it pass Third Reading.

 

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

 

		____________________________ DAVID Y. IGE, Chair