Thank you for the opportunity to express our support. >> Thank you. We have NYOP Hawaii in support. >> Thank you. Avalon Development Company in support. Maui Chamber of Commerce in support. Mark Development Inc. in support. Tax Foundation of Hawaii with comments. And Johnny May El Perry with comments. Is that Tax Foundation of Hawaii? >> Yes. Char present. >> [snorts] >> Oh. Um, sorry. Wait. >> Can you hear me? Sorry. >> Yes, we can. >> Sorry. I'm in my car right now. Um, T Foundation of Hawaii stands on its comments. Thank you very much. >> Thank you. Anyone else wishing to testify on House Bill 1920? Okay.
Embarrassing. >> Yeah. We >> the job you guys are doing is is uh >> amazing >> exceptional. It's amazing just keeping those buses on the road. We felt pretty good for a while when they were brand new, >> but you know this comes and and the cost to maintain an old bus compared to the cost to maintain a new bus is dramatic. So that's where some of our money is going is maintaining those older buses in maintenance costs. >> Yeah. someday can maybe you can break that down for us. >> Just the safety factor alone, I mean, I don't want ever want to be in the shape we were before that last bond because we didn't even want to send those buses anywhere. >> Yeah. >> Thank you so much. >> Thank you. >> And then next, what we'd like to do is invite up uh Mr.
If not, members, any questions? question for HHFTDC or DOTAX. >> I don't know who might be able to best answer this. We'll start with you Mr. Minami. Um, who current how do you monitor the credits and transfers? Is that you or is that Dota tax? >> Currently, we do not monitor the credits or transfers. >> Okay, >> that would be Dota Tax. >> Do does D do have a >> response to this? >> I think I may have asked this question when the companion bill was here. Right now, this proposes an unrelated transfer. So, currently you have to um we don't manage the transfers, but if you're a partner or you you you belong your shareholder in this company that invests, then um you know there's like a K1 or um a certain document that will show who that shareholder partner is and that'll be tied to the um initial investment.
Neil um to talk about some of our computer uh technology infrastructure that's similar situation to our buses. >> Nobody has good news at this. >> There is no good news. >> That's why we recognize the kids first. >> Yeah, that's the happy part. >> Yeah. >> Good afternoon. Uh so just like we've heard pretty much all of the night here, uh the state of BR technology is really no different. Um, our teacher laptops, every teacher classroom, um, every classroom we have in the district has some basic, uh, technology items in that classroom. We have the teacher laptop, projector, a wireless display, uh, to talk to that projector, and a document camera. Um, all of those items in our district are at least nine years old um, at this point. And these numbers are from late last year. So, by the time the bond comes around, we'll be talking 11 year olds here.
>> So, DOAX would see that and track that. Yeah. >> Okay. Thank you. >> Um, thank you. Any further questions? Um, actually for Department of Taxation. So, did you get a chance to take a look at the proposed language from Sugar Creek Capital? >> Um, yes. So, the um it looks like that first sentence of that paragraph. Um, right. But you so the the credit must be filed within 12 months um that it can be claimed. So um yeah that that still will stand. So I'm not I'm not sure what that recommendation. >> So my question is th this transferability would apply only to future tax credits. >> Oh correct. Right. Right. not tax credits issued say last year, >> right? >> That's the intent. Does that language >> address that intent? >> Um, yes. So, anything any credits that can be claimed in 2026 will have to be filed in 2027.
Um the first part of the bond project as far as technology is related to is the classroom. Uh we start with the teachers start in the classroom every time. Uh that's always our priority. Um right now uh Blige is uh leading the white mountains in digital equity thanks to our 1:1 program. We have K through 12. All of our students have laptops available to them. um half of the district six or uh 7 through 12 takes can take them home with them. Um it helps uh close that digital divide that we see throughout the mountain here. Um and when we were talking about uh teachers um and then the of course the students that they have in their classroom. Here's a breakdown of the cost for that with the classroom cost being on the top um and then the student cost being towards the bottom there.
So, you know, correct. You cannot do you cannot file this tax credit for a credit that incurred in say 2025. You have to file it within 12 months. So that is correct. That will that will satisfy that request. I mean the project may have been going on for many years but by the time they get the form from the federal government and then the approval from HHFTC that would happen in say 2026 and then they include that with their tax return in 2027. >> Okay. But uh the language is slightly different from what we passed what this committee passed on SD1 version of SP 2675 the the Senate bill um which says for credits issued after July 1, 2026. This new proposed language says for credits claimed on tax returns filed for taxable years beginning after December 31, 2026. Is that the same thing? Um so the fir uh well if you're going to file your return after um what is it?
Um, and one thing to note is this top section with the teachers in the classrooms is that these items are over are over 10 years old. Um, they've got to be be replaced whether there's a bond or not. Um, and so that when you're looking at the $653,000 for teachers and classrooms, that's money that will be spent whether we have the bond money or not. Um, we have to do that for our classrooms. Um, next we move on to the technology uh infrastructure. Um, in 2013, uh, that's about the year that I first got here, we built our first master planned, uh, network. Um, it was the first master plan network that the district had ever had, and we spent about a million dollars to do it, and we're only able to get half the district done at that time. Um, in 2018 bond, we were able to do the other half of the district, and we currently have a 10 gigabyte backbone throughout the district.
January 1, sorry. or that the one in this language is is it >> December 31st, 2026. >> Okay. So, if you're going to file it after December 31st, 2026, that credit may have happened in any time of 20 of 2026. But the first one, it sounds like the credit had to happen after July 1st, >> right? So, is that >> So, it's a little bit different. It's a little bit different, >> but in both cases, they would prevent somebody who got a tax credit issued in 2024. >> 2024 >> or 2025. >> Okay. Thank you. >> Any further questions, members? Okay. Okay, we'll move to our next bill, which is House Bill 2270 relating to the down payment loan assistance program, which amends the down payment loan assistance program by removing the prohibition on combined loan to value ratios, clarifying HHFDC's authority to allow payment waiverss, and interest forgiveness, authorizing financial institutions, mortgage lenders, and other loan originators to originate down payment loans, and reducing the borrower's required personal contribution toward the down payment.
Um, so for those of you that don't know what that means, that means we're really fast and futurep proofed for a long time. Um, and that's why you don't see any of like the infrastructure, the cabling, those types of items um on the bond here is because we did that over the last 10 years um to future proof ourselves. Uh so what we need now is we need servers. Again, our servers are 10 years old. Uh we did our backup servers. Um switches at the junior high uh which were done off schedule because they were done with the last bond. um so they're not on schedule with the rest of the district. Um and then our battery backups uh throughout the district. And one thing to note too as we're talking about uh dollars and trying to get a hold of dollars, uh right now we're in the middle of -ate cycle.
Our first testifier is HHFDC in support in support. >> Thank you. Um and several others. OHA in support, [music] DBED in support, OPSD in support, Hawaii Realtors in support, ARP Hawaii in support, Mortgage Bankers Association of Hawaii in support, Hawaii Credit Union League in support, and Johnny May El Perry with comments. Is there anyone else wishing to testify on House Bill 2270?
Um the bids just closed. We selected a vendor um on there in our uh firewall and our wireless access points uh throughout the district. We currently have 198 wireless access points throughout the district which allows our students and staff to wander um as they please throughout the district and still have internet access. Um that is being completed by -ate um right now should be done by the end of uh by the end of the summer and uh that's a savings of approximately $220,000 for the district there with funds. Um, and -ate, our -ate cycle runs uh 2026 through 2030 and just we talked about inflation a little bit earlier. Uh, -ate put inflation at 20.7% this year uh when they did the new 5year cycle. Um, so that's what the feds are looking at as far as rate goes uh for the next 5year cycle is 20.7%.
Okay, members, do we have any questions? Okay, if not, we'll move to House Bill 2385 relating to housing, which authorizes HHFDC to approve and certify get exemptions for certain housing development projects developed under county housing incentive programs. Our first testifier is Hawaii Department of Taxation with comments. >> Thank you. HHFDC in support. in support. >> AP in support. Grassroot Institute of Hawaii in support. Maui Chamber of Commerce in support. Avalon Development Company LLC in support. Center Urban Real Estate in support. Tax Foundation of Hawaii with comments. >> Tax Foundation stands on its written comments. Mahalo. >> Thank you. and comments from Johnny May El Perry and support from William Coron. Is there anyone else wishing to testify in House Bill 2385?
Um, next up we have the campus safety and security. Uh, one of the the areas that we have really lacked um with the lack of funding is in uh being able to redo our paging intercom system, our uh security cameras, and address the issues that we have with our uh locks and keys throughout the district. Um, our paging system was obviously a huge safety issue for us. Um, and we pressed really hard. Uh, we worked with the facilities department here. Um, and we were able to get that paging system. We completed that complete district-wide upgrade um, at the end of last year, at the end of 2025. Um, and that saved the district approximately $1.3 million on that project that we got from the SFD. Um, and really, so just break down, um, I'm a computer guy, don't have a lot to say, so that's the end of my slides there.
Okay, if not, um members, do we have any questions? Okay, seeing none, we'll move to our next bill, which is HP 2515 relating to workforce housing, which establishes the workforce housing regulatory sandbox program, establishes an advisory council within the workforce housing regulatory sandbox program to advise on environmental and cultural practices within specific developments, requires a report to the legislature, and appropriates funds. Our first testifier is HHFTC in support. >> HFC stands by his testimony in support. >> Followed by HPHA in support. >> HPHA stands on his testimony. >> Thank you. HCDA in support. OPSD in support. >> OPSD stands on it. >> Thank you. Office of Hawaiian Affairs with comments. >> Chamber of Commerce Hawaii in support. >> Thank you. Maui Chamber of Commerce in support, Housing Hawaii's Future in support, Hawaii Island Chamber of Commerce in support, and Joy Barua in support. Is there anyone else wishing to testify on House Bill 2515?
Uh, but here's a breakdown of everything that we have, and I'm open to any questions you may have for me. Before Before we get into questions too, I want I want to talk a little bit about the philosophies uh that Nathan and I have been talking about that somewhat represent our district with our computers. We want to make computers accessible because you know we can't do all much in life without technology anymore without our smartphones and without computers. Our state testing is on computers. Our curriculum's on computers. There's the way we take attendance, our grade books, all on computers and a lot of that is teacher computers, but we have to have good working student computers for testing and some different things. We do not want it where we feel like the computers are teaching the kids. >> The teachers teach the kids. And but also so how do we balance that in in a world where you know we all get on our phone to you know find out car values or gas prices or or to buy things that get shipped to our door or so how do we balance that where we have an appropriate amount of time of uh and and when we talk about the digital digital literacy standards so how do we integrate those appropriately without relying on the computers to be the teacher Well, we we still think the teachers are the teachers, but but we need um support whether it's, you know, the Wi-Fi touch points, uh computers that function um for teachers well and um servers, infrastructure, and based on some of the things that have been happen this year, the political climate, different things, we we want to make sure safety and security um of our students, of our computers is is number one.
If not, members, do we have any questions? Okay. Um, seeing none, our last bill today is HB1 1724 relating to HHFDC. makes a dwelling unit revolving fund equity pilot program permanent with modifications that include changing the method of computation of interest for purchasers of certain real property. Expands the use of proceeds in the de in the derf to include purchasing equity and for sale housing development projects and interim primary or secondary financing. Exempts dispersements from the affordable housing revolving fund from appropriation and aotment requirements. Our first testifier is HHFTC in support. >> Thank you. OPSD in support. >> Thank you. DBED in support. Halu Collaborative in support. Housing Hawaii's Future in support. Hawaii Community Foundation in support. Is there anyone else wishing to testify on House Bill 1724? Not members.
And so part of what he talked about was were the cameras and getting those updated. You can tell they're a human like going by our cameras in most circumstances. Sometimes it might be a Bigfoot. So if you hear about Bigfoot sighting, it might just be our cameras that we currently have, but a lot of that stuff is is pretty dated as well. And I know this sounds like doom and gloom, but these are just needs that we're looking to move forward on and and and hopefully get these uh get these things updated so the teachers can teach and the kids can learn and people can come to school. And like like Mike talked about, we're not looking for the Cadillac. We're just looking he said Toyota Corolla. I've never driven a Toyota Corolla. So I just I just say just a Chevy that goes down the road so the teachers and students can do the amazing things like the teachers and students we had here today um doing that.
Do we have any questions? Okay. Um if not members, are we ready to go into some decision-m? Okay. We don't have a lot of time, so we're going to try to get through as much as we can. Our first bill is House Bill 1711 relating to housing. Um chair's recommendation will be to pass this measure with amendments. The amendment will be to further defect the date.
So, uh, but I wanted to make sure that that was well known from the digital component on moving forward with that. Any questions? >> Uh, I just I mean I have no problem with the with the teach I mean the teachers I know firsthand they need new technology. I know I've been doing a lot of research about student technology and it really seems that onetoone technology is not really necessary as necessary as maybe it was and obviously we got it because of co if it wasn't for co we wouldn't we wouldn't have had that um and so I would like to see us look at other options where we don't we're not buying technology for each student we don't test everybody at the same time because we don't have space necessarily for that um you know for our high school students at least. Um, and so I'm not sure we need as much individual student laptops and and as you said, if we're if we're trying to encourage our teachers to teach, I feel like some of our we have kind of moved towards the computer teaching again probably because of COVID um and and maybe that would help us to come back to getting back to those fundamentals a little bit that the research is all saying now is is much better than than students learning on a computer.