Legislators weigh $1.2B
UH budget

The Manoa campus still comes up
short in flood-relief funding

The state Legislature will vote this week on a budget that gives the University of Hawaii about $1.2 billion in general funds during the next two years, including increased salary costs.

The budget also has $53.8 million in new spending, including $31 million in general funds for flood relief at UH-Manoa.

State funding accounts for about half of the university's overall budget.

The Legislature funded several priority building projects, among them the design and construction of a new Komohana campus for Hawaii Community College in Hilo.

The budget also addresses the problem of student housing at UH-Manoa by appropriating $25 million in taxpayer bonds to redevelop Frear Hall and giving the university the authority to issue up to $100 million in other bonds that would be paid back through student housing fees.

"It's pretty significant money," said David Morihara, UH director of government relations.

But the capital-improvement budget did not include $28.4 million in construction money to fix Hamilton Library, the Biomedical Sciences building and other UH-Manoa facilities damaged by the October flood.

Sam Callejo, UH vice president for administration, said that means the university will have to postpone needed repairs and maintenance on other campuses to fix the flood damage at Manoa.

The John A. Burns School of Medicine, which had been seeking $13 million, will get $6.9 million in operating funds.

Acting medical school dean Dr. T. Samuel Shomaker said the money will help pay for the operating costs of the new Kakaako facility.

"We feel that the Legislature has been very generous," he said.

Most of the money had been sought to hire new faculty and researchers, who are expected to bring in new research grants to the university.

Shomaker said the school will have to pursue other sources to recruit new faculty.

Lawmakers also did not give the university a one-time $20 million appropriation for a state scholarship fund.

But funds for a pilot "B-plus" scholarship program, to pay tuition for any students from low-income schools who graduate with and maintain a B average, are included in a $2.7 million appropriation for the UH system.

Jan Yokota, UH director of capital improvements, said the $25 million in general obligation bonds will help reduce any increase in housing fees for students because the state would pay for the construction.

The other $100 million in bonding authority would be paid back through student housing fees.

She said the money will allow the university to work on Frear Hall, and when it is completed, students can live there while construction continues on the other properties.

"We're pretty excited about moving forward with it," she said.

House Finance Chairman Dwight Takamine's home district of Hilo fared well in the capital improvement budget.

Hawaii Community College got $18.2 million for its new campus. UH-Hilo has $20 million for a new science and technology building and $2 million for the design of a new Hawaiian Language Building.

All of the projects were part of the regents' budget request. But the governor's budget only included funds for the Hawaiian Language Building.

And while the Legislature can approve spending the money, the governor has the ultimate authority of whether to release or withhold the money.

Major UH spending proposals

New University of Hawaii spending in the 2006-07 biennium budget

GENERAL FUNDS
Flood relief: $31 million
New spending: $22.7 million
Medical school: $6.9 million
UH-Manoa: $3.4 million and 26 positions
UH-Hilo: $3.2 million and 28 positions
UH-West Oahu: $250,500 and two positions
UH System: $2.7 million and two positions
Community colleges: $6.1 million and 50 positions

CAPITAL IMPROVEMENT BUDGET
Bonding authority for student housing: $100 million
Frear Hall renovation: $25 million
Repair and maintenance: $55 million
Health and safety code: $23.2 million
Hawaiian Language Building at UH-Hilo: $2 million for design and planning
Science and Technology Building at UH-Hilo: $20 million
New Hawaii Community College Komohana Campus: $18.2 million
Maui Community College Student Service Center: $3.5 million
Maui Community College Science Facility: $3.5 million
Kauai Community College One Stop Center: $11.8 million

SOURCE: HOUSE BUDGET SUMMARY AND
UH OFFICE OF GOVERNMENT RELATIONS