STAND. COM. REP. NO. 3202

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2062
                                        H.D. 2
                                        S.D. 1




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

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 2062, H.D. 2, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO HIGHER EDUCATION,"

begs leave to report as follows:

     The purpose of this bill is to temporarily exempt University
of Hawaii from the allotment system with regard to the use of
carryover funds until July 1, 2002.

     Specifically, this measure authorizes the University to keep
any operating general funds remaining at the close of a fiscal
year and use them to freely supplement any university program in
the next fiscal year without any appropriation in the next fiscal
year being accordingly restricted.

     Furthermore, this measure exempts the University from the
allotment system requirements that (1) appropriated funds cannot
be used for purposes not specifically authorized by the
Legislature, and (2) appropriated funds remaining unencumbered at
the close of a fiscal year shall lapse into the general fund.

     Your Committee finds that this measure is necessary to
provide the University with added flexibility in program
management and fiscal autonomy.


 
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                                   STAND. COM. REP. NO. 3202
                                   Page 2


     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 H.B. No.
2062, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

                                 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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