STAND. COM. REP. NO. 81

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1183
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Education and Technology, to which was
referred S.B. No. 1183 entitled: 

     "A BILL FOR AN ACT MAKING EMERGENCY APPROPRIATIONS FOR THE
     UNIVERSITY OF HAWAII,"

begs leave to report as follows:

     The purpose of this measure is to make an emergency
appropriation to allow the University of Hawaii to meet its
general fund fiscal obligations under Hawaii Revised Statutes
Chapter 304.  This measure addresses the budgetary shortfall
resulting from the transfer of fiscal year 1997-1998 encumbrances
to fiscal year 1998-1999 which was necessitated by the University
having to pay its faculty members on June 30, 1998, instead of on
July 1, 1998.

     Testimony in support of this measure was received from the
University of Hawaii and the University of Hawaii Professional
Assembly.

     Although University funds were restricted in anticipation of
the payroll lag authorized in Act 355, Session Laws of Hawaii
1997, the University of Hawaii Professional Assembly was granted
a motion by the United States District Court for a preliminary
injunction enjoining the governor and the comptroller of the
State from lagging the payroll of the University faculty members.
Unfortunately, this occurred after the completion of the
University's purchasing activities which encumbered fiscal year
1997-1998 funds.  In order to pay the faculty salaries, these

 
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purchasing encumbrances had to be transferred to fiscal year
1998-1999.

     Your Committee finds that this measure addresses the
budgetary shortfall for fiscal year 1998-1999.  Past bugetary
reductions have led to declines in the quality of University
programs and in access to these programs.  Your Committee
believes that this emergency appropriation will allow the
University to meet its fiscal obligations and carry out its
educational mission of high quality teaching, research, and
public service.

     As affirmed by the record of votes of the members of your
Committee on Education and Technology that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 1183 and recommends that it pass Second Reading and
be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Education and
                                   Technology,



                                   ______________________________
                                   DAVID Y. IGE, Chair

 
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