STAND. COM. REP. NO. 88

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1218
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Higher Education, to which was referred
H.B. No. 1218 entitled:

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

begs leave to report as follows:

     The purpose of this bill is to make emergency appropriations
of approximately $6,000,000 to the University of Hawaii system
for fiscal year 1998-1999 in order for the University to fulfill
its present fiscal year obligations.

     Your Committee finds that the University had transferred
about $6,000,000 of its fiscal year 1997-1998 general fund
encumbrances to fiscal year 1998-1999 in order to avoid a
budgetary deficit of the same amount.  Accordingly, the transfer
increased the University's fiscal year 1998-1999 obligations.

     Your Committee further finds that despite its autonomy the
University has not been able to cover the deficit on its own in
the intervening fiscal year.  Unless legislative fiscal
intervention is received, the University will again have to shift
$6,000,000 of its fiscal year 1998-1999 obligations to fiscal
year 1999-2000 in order to avoid a second budgetary shortfall of
the same amount.  Funds are available in the state treasury, as
these funds were appropriated but subsequently restricted.


 
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                                 STAND. COM. REP. NO. 88
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     As affirmed by the record of votes of the members of your
Committee on Higher Education that is attached to this report,
your Committee is in accord with the intent and purpose of H.B.
No. 1218 and recommends that it pass Second Reading and be
referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Higher Education,



                                   ______________________________
                                   DAVID MORIHARA, Chair

 
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