STAND. COM. REP. NO.  9

 

Honolulu, Hawaii

                , 2007

 

RE:   S.B. No. 638

      S.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Sir:

 

     Your Committee on Finance, to which was referred S.B. No. 638, S.D. 1, entitled:

 

"A BILL FOR AN ACT MAKING APPROPRIATIONS TO PROVIDE FOR THE EXPENSES OF THE LEGISLATURE, THE AUDITOR, THE LEGISLATIVE REFERENCE BUREAU, AND THE OMBUDSMAN,"

 

begs leave to report as follows:

 

     The purpose of this bill is to appropriate funds to provide for the expenses of the Legislature and its service agencies.

 

     More specifically, this measure provides for the expenses of the Legislature, Office of the Auditor (Auditor), Hawaii State Ethics Commission (Ethics Commission), Office of the Ombudsman (Ombudsman), Legislative Reference Bureau (LRB), and legislative broadcast program.

 

     The Speaker of the House of Representatives (House), Chief Clerk of the House, Sergeant-at-Arms of the House, Ethics Commission, Auditor, LRB, and Ombudsman testified in support of this bill.

 

     Your Committee notes that Act 1, Session Laws of Hawaii 2004, provided the Auditor with the resources and tools necessary to increase transparency and accountability in state government.  The Audit Revolving Fund (Revolving Fund) was created within the Office of the Auditor, and $3,013,125 in general funds was transferred to it from the general fund budgets of certain state departments that had been auditing themselves.  In 2004, the functions transferred to the Auditor included:

 

(1)  The comprehensive annual financial report of the State;  and

 

     (2)  The financial statement and single audits of:

 

(A) The Department of Human Services, excluding the Hawaii Public Housing Authority;

 

(B)  The Department of Health;

 

(C)  The Department of Education; and

 

(D)  The Department of Transportation (DOT), specifically:

 

(i)  The administration of DOT;

 

(ii) The Oahu Metropolitan Planning Organization; and

 

(iii)  The Airports, Harbors, and Highways divisions of DOT.

 

     To continue providing transparency and accountability in state government, the resources necessary to conduct the financial statement and single audits of 11 additional state departments--$2,456,035 in general funds--will be cut from the respective departments and transferred to the Revolving Fund.  The Revolving Fund will be increased to $5,600,438 to reflect this increase as well as allow for the reimbursement and expenditure of eligible federal funds.

 

     Your Committee further notes that this budget:

 

(1)  Increases authorized expenditures for the House of Representatives and Senate by $2,658,444 (14.2 percent); and

 

(2)  Increases authorized expenditures for the legislative agencies, Auditor, Ethics Commission, LRB, and Ombudsman by $2,790,045 (30.1 percent).

 

     Altogether, the total budget for the legislative branch will increase by $5,448,489 (19.5 percent).

 

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 638, S.D. 1, and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Finance,

 

 

 

 

____________________________

MARCUS R. OSHIRO, Chair