STAND. COM. REP. NO.  173-10

 

Honolulu, Hawaii

                , 2010

 

RE:   H.B. No. 2429

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Sir:

 

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 2429 entitled:

 

"A BILL FOR AN ACT RELATING TO SEPARATION INCENTIVES,"

 

begs leave to report as follows:

 

     The purpose of this bill is to address budget shortfalls by:

 

(1)  Authorizing the executive branch to offer a voluntary severance or a special retirement incentive benefit to state employees who elect to voluntarily separate from service when their positions are identified for abolishment or when they are directly affected by a reduction-in-force or workforce restructuring plan; and

 

(2)  Extending to the counties, the Department of Education, the Judiciary, the Hawaii Health Systems Corporation, the Office of Hawaiian Affairs, and the legislative branches of the state and county governments the option to provide a special retirement incentive to their respective employees under a reduction-in-force or a workforce restructuring plan.

 

     The Hawaii Government Employees' Association supported this bill.  The Employees' Retirement System and Department of Budget and Finance opposed this measure.


 

 

     Your Committee finds that while this legislation provides government with an option to reduce workforce as a cost-saving measure there are many concerns regarding the loss of good employees and their institutional knowledge and necessary skills that may be difficult or even damaging to do without.  However, in such economic times this issue warrants further discussion and this bill should move forward in the legislative process to receive more input and determine the true cost savings of such an initiative.

 

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2429 and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

 

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

 

 

 

 

____________________________

KARL RHOADS, Chair