STAND. COM. REP. NO. 726

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 550
                                        S.D. 2




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

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 550, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO EDUCATION,"

begs leave to report as follows:

     The purpose of this bill is to require expenditure reports
of the Department of Education to be made by the Department
itself rather than by the Auditor.

     Furthermore, this measure reconceptualizes the reporting
items along the standards used in the In$ite computer software.

     Your Committee adopts the sensible and thoughtful
recommendations of the Auditor in a recent audit of the
Department of Education that the department itself, not the
Auditor, should be the entity responsible for reporting the
Department's expenditures and that computer software such as
In$ite can provide extensive information about a school system
without great costs.

     Your Committee likewise admonishes the Department of
Education for refusing to report its own school-by-school
expenditures on the grounds that it is actually the Auditor's
responsibility, and insisting without grounds that better expense
reporting is beyond the Department's meager budget.

 
a                                                     SB550 SD2
 
 
 
                                   STAND. COM. REP. NO. 726
                                   Page 2


     Your Committee has amended this measure by making minor
clarifying amendments.

     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.
550, S.D. 1, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as S.B. No. 550, S.D. 2.

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



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
a                                                     SB550 SD2