UH Autonomy

Provides fiscal autonomy to the University of Hawaii, by allowing
it to submit it's budget directly to the legislature.  (HB2813

HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                     A BILL FOR AN ACT



 1      SECTION 1.  The legislature finds that a strong university
 2 system can be a significant contributor to a robust economy,
 3 providing both quality higher education and dollars for the
 4 surrounding communities.  The legislature further finds that
 5 those universities that contribute to a significant degree to the
 6 community's economic well being have broad authority to respond
 7 to changing opportunities.
 8      In recent years, the University of Hawaii has been granted
 9 increasing fiscal autonomy from the executive branch.  Last year,
10 the legislature passed a broad-based measure that gave the
11 university increased authority to manage its assets, personnel,
12 and programs.  Although the university received increased
13 autonomy, the legislature further finds that it is necessary to
14 grant the University of Hawaii more autonomy from the executive
15 branch to maximize the university's potential to grow as a world-
16 class institution and contribute to the State's economic
17 revitalization.
18      The purpose of this Act is to provide the University of
19 Hawaii with fiscal autonomy from the executive branch to provide
20 the university with opportunities and incentives for developing

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 1 an entrepreneurial, competitive role and contributing to Hawaii's
 2 economic growth.
 3      SECTION 2.  Chapter 304, Hawaii Revised Statutes, is amended
 4 by adding a new section to be appropriately designated and to
 5 read as follows:
 6      "304-    Administration; budget preparation and submission.
 7 (a)  The board of regents shall make an annual report to the
 8 legislature, at each regular session thereof, of the business of
 9 the University of Hawaii and of the administration of the
10 university system throughout the State.  The board of regents
11 shall present to the legislature a unified budget, six-year
12 program and financial plan, and variance report for all of the
13 colleges, departments, and programs of the University of Hawaii.
14 The president of the university, who shall be appointed by the
15 board of regents, shall direct the administration of the
16 University of Hawaii with responsibility for the efficient
17 operation of all of the colleges, departments, and programs.
18      (b)  The president of the university shall possess the
19 following powers, that may be delegated by the board of regents:
20      (1)  To prescribe for all of the colleges, departments, and
21           programs, a uniform system of keeping and periodically
22           reporting statistics of their business;

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 1      (2)  To procure from all of the colleges, departments, and
 2           programs, estimates for their appropriations; with the
 3           cooperation of the representatives of the colleges,
 4           departments, and programs concerned to review and
 5           revise them as the president deems necessary for the
 6           equitable provision for the various colleges,
 7           departments, or programs according to their needs and
 8           to present the estimates, as reviewed and revised by
 9           the board of regents, to the legislature as
10           collectively constituting a unified budget for all of
11           the University of Hawaii;
12      (3)  To exercise exclusive authority over the preparation,
13           explanation, and administration of the University of
14           Hawaii budget, programs, plans, and expenditures,
15           including without limitation policies and practices of
16           financial administration and the establishment of
17           guidelines as to permissible expenditures; provided
18           that all expenditures of the University of Hawaii shall
19           be in conformance with program appropriations and
20           provisions of the legislature; and
21      (4)  To do all other acts which may be necessary or
22           appropriate for the administration of the University of
23           Hawaii.

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 1      (c)  The budget, six-year program and financial plan, and
 2 the variance report of the University of Hawaii shall be
 3 submitted by the board of regents to the legislature in
 4 accordance with the schedule of submission specified for the
 5 governor in chapter 37 and shall contain the program information
 6 prescribed in that chapter.  By November 1 of each year preceding
 7 a legislative session in which a budget is to be submitted, the
 8 board of regents shall provide written notification to the
 9 governor of the proposed total expenditures, by cost categories
10 and sources of funding, and estimated revenues of the University
11 of Hawaii for each fiscal year of the next fiscal biennium."
12      SECTION 3.  Section 304-7.5, Hawaii Revised Statutes, is
13 amended to read as follows:
14      "304-7.5  Budget appropriations; University of Hawaii.(a)
15 Beginning in fiscal year 1998-1999, and every year thereafter,
16 the base general fund budget appropriations for the University of
17 Hawaii shall be an amount not less than three times and not
18 greater than five times the amount of regular tuition and related
19 fee revenues estimated for that fiscal year.
20      (b)  Any base general fund budget appropriation for the
21 University of Hawaii for operating purposes for any fiscal year
22 shall include the consideration of:
23      (1)  The fiscal condition of the State;

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 1      (2)  Enrollment;
 2      (3)  Access to educational opportunity;
 3      (4)  The mix of resident and nonresident students; and
 4      (5)  Community service and noninstruction programs.
 5      (c)  No revenue received by the University of Hawaii
 6 pursuant to the University of Hawaii tuition and fees special
 7 fund established under section 304-16.5 may be used by the
 8 governor or the director of finance as a justification for
 9 reducing any budget request or allotment to the University of
10 Hawaii unless the university requests such a reduction."
11      (d)  As used in this section, "base general fund budget
12 appropriation" means the amount of general funds appropriated,
13 excluding any one-time appropriations made to a program, or other
14 appropriations that are restricted by bill or proviso."
15      SECTION 4.  Statutory material to be repealed is bracketed.
16 New statutory material is underscored.
17      SECTION 5.  This Act shall take effect on July 1, 2000.