The bill's implications on state law primarily revolve around its effect on how the University of Hawaii manages its funding and financial reporting. By lifting the cap, the University can potentially engage in more robust fundraising and broad-based resource development initiatives. This move is designed to enable the university to better respond to the financial pressures it faces and enhance support for its educational programs and operational needs.
Summary
Senate Bill 120 (SB120) proposes to amend Section 304A-2153 of the Hawaii Revised Statutes, specifically addressing the funding mechanisms for the University of Hawaii (UH) Foundation. The bill seeks to remove the existing $3 million expenditure cap that the University System can allocate from the University of Hawaii Tuition and Fees Special Fund for the purpose of supporting the UH Foundation. This change allows the board of regents of the university to authorize expenditures beyond the stipulated limit, facilitating greater financial flexibility in promoting alumni relations and non-state funding efforts.
Contention
Points of contention regarding SB120 may arise from concerns about transparency and the appropriate oversight of the funds being expended. Critics could argue that without a cap, there is a risk of excessive spending and a lack of accountability in how the funds are utilized. Supporters, on the other hand, would emphasize that the increased financial resources could significantly benefit the UH and the broader educational mission, ultimately leading to long-term benefits for the state’s economy and workforce development.