Agreement near for private
school construction bill

---

By Crystal Kua
ckua@starbulletin.com

Senate and House conferees appear close to an agreement on a proposed con- stitutional amendment that would help private schools serving 36,000 students finance construction and renovation projects.

The bill would put before voters in this year's general election: whether to amend the state Constitution to allow special revenue bonds to be issued for educational facilities at private sectarian and nonsectarian elementary, secondary and post-secondary schools.

Currently these tax-exempt bonds are issued to assist financing construction projects with public purposes related to utilities, nonprofit health care facilities, preschools and government housing programs.

In written testimony supporting the constitutional change and an accompanying statutory change, the Hawaii Association of Independent Schools said smaller private schools would benefit the most from the measure.

"While private schools in Hawaii may use long-term financing to finance construction and renovation, such financing may not be affordable to a school, especially a smaller private school, unless the bonds are tax-exempt bonds," according to the association's testimony.

The association said the measure doesn't take money away from public schools because the state acts only as a "conduit" for the financing.

House Conference Chairman Ken Ito (D, Kaneohe) yesterday presented to Senate conferees proposed changes that he said would strengthen the bill. Senators did not have any immediate objections.

Both sides are expected to meet again today to settle on the final conference draft.

---

Legislature Directory

Legislature Bills & Hawaii Revised Statutes

Testimony by email: testimony@capitol.hawaii.gov
Include in the email the committee name; bill number;
date, time and place of the hearing; and number of copies
(as listed on the hearing notice.) For more information,
see http://www.hawaii.gov/lrb/par
or call 587-0478.