STAND. COM. REP. NO. 2705

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2750
                                        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 S.B.
No. 2750 entitled: 

     "A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION FOR THE
     DEPARTMENT OF ACCOUNTING AND GENERAL SERVICES, INFORMATION
     AND COMMUNICATION SERVICES DIVISION,"

begs leave to report as follows:

     The purpose of this bill is to address a current budget
shortfall in the Information and Communication Services Division
caused by an over-collection of federal reimbursements in fiscal
years 1996-1997 and 1997-1998.

     Your Committee finds that the over-collection prompted the
federal government to withhold current payments on federally
funded programs.  This withholding in addition to the Division's
increased operating expenses has caused the Division to fall
behind in its current budget by $800,000.

     This bill provides the funds necessary to allow the Division
to meet its budgetary obligations during the current fiscal year.

     Your Committee has amended the bill by making technical
changes that have no substantive effect to continue discussion on
this issue.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your

 
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                                   STAND. COM. REP. NO. 2705
                                   Page 2


Committee is in accord with the intent and purpose of S.B. No.
2750, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as S.B. No. 2750, S.D. 1.

                                 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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