STAND. COM. REP. NO. 658

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 254

       S.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

 

Madam:

 

     Your Committees on Ways and Means and Judiciary and Labor, to which was referred S.B. No. 254 entitled:

 

"A BILL FOR AN ACT RELATING TO THE BUDGET,"

 

beg leave to report as follows:

 

     The purpose and intent of this measure is to require the Director of Finance to include a summary of operational costs for proposed capital improvement projects within each annual budget submitted to the Legislature.

 

     Your Committees find that the costs of state facilities include not only initial construction cost, but also the cost to operate the facility once constructed.  Requiring the Director of Finance to disclose estimated operational costs will help to present a more complete picture of the actual cost of a capital improvement project and will help to provide guidance on whether expenditures of operational cost-saving investments are justified.

 

     Your Committees have amended this measure by:

 

(1)  Requiring each agency responsible for operating or maintaining a state-owned building, facility, or other improvement to furnish an estimate of the deferred maintenance costs of that building, facility, or improvement to the Department of Budget and Finance;

 

(2)  Requiring that the Director of Finance also include a summary of the deferred maintenance costs of state buildings, facilities, and improvements within each annual budget submitted to the Legislature; and

 

(3)  Defining what costs are considered as deferred maintenance. 

 

     As affirmed by the records of votes of the members of your Committees on Ways and Means and Judiciary and Labor that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 254, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 254, S.D. 1, and be placed on the calendar for Third Reading.

 

Respectfully submitted on behalf of the members of the Committees on Ways and Means and Judiciary and Labor,

 

________________________________

GILBERT S.C. KEITH-AGARAN, Chair

 

________________________________

JILL N. TOKUDA, Chair