STAND. COM. REP. NO. 1624

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.C.R. No. 27
                                        S.D. 1




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.C.R. No. 27, S.D. 1, entitled: 

     "SENATE CONCURRENT RESOLUTION CALLING FOR A TASK FORCE AND
     REQUESTING A STUDY TO REVIEW THE FISCAL NEEDS OF THE STATE
     HIGHWAY FUND AND REPORT ON DEVELOPING A REVENUE PLAN FOR THE
     HIGHWAYS DIVISION,"

begs leave to report as follows:

     The purpose of this Concurrent Resolution is to request the
Department of Transportation to convene a task force to review
the fiscal needs of the state highway fund.

     The Concurrent Resolution also requests the task force to
develop a revenue plan that will maintain the solvency of the
fund.

     Your Committee finds that the highway fund is in critical
need of review and proper planning for the following reasons:

     1.   The state highway fund has experienced transfers to the
          general fund in the amount of $99,000,000 over the last
          four years;

     2.   The Highways Division of the Department of
          Transportation has lengthened its maintenance program

 
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                                   STAND. COM. REP. NO. 1624
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          from ten to thirteen years which means less attention
          to the State's highways;

     3.   Hawaii ranks second nationally in bridges needing
          repair; and

     4.   The State is experiencing more competition for federal
          highway moneys.

     These statistics lead your Committee to conclude that the
principle objective behind the state highway fund -- of
maintaining state highways, is being seriously compromised and
jeopardized.

     The task force requested by this Concurrent Resolution will
provide critical information to the Legislature and the
Department of Transportation that will allow them to take
appropriate steps to ensure the viability and strength of the
state highway fund.

     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 concurs with the intent and purpose of S.C.R. No. 27,
S.D. 1, and recommends its adoption.

                                 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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