Report Title:

Department of Transportation; Appropriation

 

Description:

Appropriates funds to the Department of Transportation for debt service. (SB661 HD1)

 

THE SENATE

S.B. NO.

661

TWENTY-FIRST LEGISLATURE, 2001

S.D. 1

STATE OF HAWAII

H.D. 1


 

A BILL FOR AN ACT

 

relating to the state budget.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that the airports division of the department of transportation is obligated to a debt service requirement for its outstanding revenue bonds of $116,000,000 for fiscal year 2000-2001. Additionally, the airports division has recently been faced with a significant drop in revenue due to an unavoidable change in its duty-free concession contract.

Because the airports division is special funded and supports its operations and capital improvements program through user fees and other charges, the division must account for this revenue loss by either paying down its debt or by raising fees. In preference to the former option, the airports division is proposing to utilize $185,000,000 of its cash to defease certain outstanding portions of its revenue bonds, for which the current debt service requirement is $116,000,000 for fiscal year 2000-2001.

Therefore, the purpose of this Act is to appropriate $185,000,000 from the airport revenue fund for airports administration to defease the aforementioned debt.

SECTION 2. There is appropriated out of the airport revenue fund for airports administration (TRN 195) the sum of $185,000,000 or so much thereof as may be necessary for fiscal year 2000-2001 to be used for the defeasance of certain outstanding airports system revenue bonds.

The sum appropriated shall be expended by the department of transportation for the purpose of this Act. Funds not used for this purpose shall be lapsed into the airport revenue fund.

SECTION 3. This Act shall take effect upon its approval.