State House Higher Education Chairman Isaac Choy says legislators would be putting the University of Hawaii "on steroids" to help eliminate its massive repair backlog under a bill that advanced out of his committee Tuesday, over the objections of UH officials.
The measure essentially would create an extra layer of oversight for the repairs by setting up a so-called campus facility board made up of UH chancellors. The board would be charged with "evaluating, identifying, prioritizing, and allocating moneys" for repair and maintenance projects, and would need to submit annual reports to lawmakers, detailing costs, completed projects and remaining projects.
"Repair and maintenance is something we need to get done," Choy said in recommending that House Bill 1654 move ahead. "This is not an issue that the Legislature should be attacking year after year after year."
The university’s backlog totals $487 million across the 10-campus system, with the bulk of the work needed at the flagship Manoa campus. UH officials have pointed to a combination of reasons for the neglected repairs, including downturns in the economy, inability to secure funds from the state, and capital improvement funds being diverted to new construction projects.
UH has proposed fast-tracking the work by issuing revenue bonds to pay for the repairs over six years. The bond debt would be repaid with tuition revenue over the next 30 years under that plan.
UH Chief Financial Officer Howard Todo and Board of Regents Chairman John Holzman testified against the bill at a committee hearing Tuesday.
Todo said UH already convenes a group of executives and facilities staff annually to establish repair and maintenance priorities and allocate funding from the Legislature.
Holzman cited concerns about a new board complicating the university’s existing "chain of accountability." He asked the committee to give the regents an opportunity to manage and tackle the backlog.
"We got the message from you folks and we understand you loud and clear that you are very concerned how this money will be spent and that it’s spent responsibly, efficiently (and) productively to fix these campuses," he told lawmakers.
Regents Vice Chairman James Lee said UH-Manoa is overhauling its facilities branch to improve construction management and add personnel to ensure the university can handle the influx of work. He said UH expects to complete an action plan by the end of March.
"We’re doing everything we can to make this work," Holzman said. "We’re the ones to hold responsible. Putting this other element in there just muddies the water. So hold us responsible and see how we do."
Choy stressed that the bill is intended to assist UH.
"This is not an effort by the legislative body to interfere with your management. This is to help you," he said. "I understand that you already have (a similar board). I just want to put this board on steroids."
The original bill would have added another layer of controls by creating an "oversight expenditure commission" within the state Department of Accounting and General Services.
But the committee voted to remove that section of the bill after hearing from state Comptroller Dean Seki, who testified that the bill "creates duplicate bureaucratic layers that will delay timely implementation of backlog (repair and maintenance) projects for the UH system." He added that DAGS would need about $250,000 to hire a consultant for some of the services the bill would require.
The Higher Education Committee voted 10-0 to advance the amended version to the House Finance Committee.