89
HOUSE OF REPRESENTATIVES             H.C.R. NO.            
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                     HOUSE  CONCURRENT
                        RESOLUTION

  REQUESTING THE AUDITOR TO UPDATE ITS 1992 SUMMARY OF SPECIAL
    AND REVOLVING FUNDS.



 1        WHEREAS, the state Auditor analyzed each one of 166
 2   special and revolving funds between 1991 and 1992 in response
 3   to Act 240, Session Laws of Hawaii 1990, and issued a summary
 4   report in 1992; and
 5   
 6        WHEREAS, that summary report found many funds with growing
 7   cash balances, an increasing effort by agencies to establish
 8   and use special and revolving funds, and a failure of many
 9   funds to meet the criteria for establishment as special and
10   revolving funds; and
11   
12        WHEREAS, the report also found that the use of special and
13   revolving funds had distorted the State's financial picture by
14   making both revenues and expenditures appear to be less than
15   they were, thus lessening the Legislature's power; and
16   
17        WHEREAS, many special and revolving funds simply divert
18   money from the general fund even when they may be established
19   with general funds as "seed" money; and
20   
21        WHEREAS, special and revolving funds escape the kind of
22   legislative scrutiny given the general fund, making them
23   attractive to executive and judicial agencies and special
24   interest groups; and
25   
26        WHEREAS, the title of the report, "Loss of Budgetary
27   Control", summarizes the issue that the Legislature must face
28   as it has continued to create more special and revolving funds
29   than it has disbanded since 1992; and
30   
31        WHEREAS, the Legislature should consider both the
32   Auditor's recommendation that the Auditor consider establishing
33   sunset dates for all special and revolving funds and any other
34   alternatives that may have become available since 1992; now,
35   therefore,

 
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                                  H.C.R. NO.            
                                                        
                                                        

 1   
 2        BE IT RESOLVED by the House of Representatives of the
 3   Twentieth Legislature of the State of Hawaii, Regular Session
 4   of 2000, the Senate concurring, that the Auditor is
 5   respectfully requested to undertake an update of the 1992
 6   summary report on special and revolving funds and submit the
 7   report to the Legislature no later than twenty days prior to
 8   the convening of the Regular Session of 2001; and
 9   
10        BE IT FURTHER RESOLVED that the update is requested to
11   include:
12   
13        (1)  For each new special and revolving fund created since
14             July 1, 1990, an analysis of its conformance with the
15             criteria used by the Auditor in complying with Act
16             240, Session Laws of Hawaii 1990;
17   
18        (2)  For all special and revolving funds existing as of
19             July 1, 1999, their cash balances as of June 30,
20             2000;
21   
22        (3)  A list of all special and revolving funds terminated
23             since July 1, 1990; and
24   
25        (4)  A discussion and analysis of alternatives available
26             to the Legislature in strengthening its oversight
27             over non-general fund moneys, including any
28             successful approaches in other states;
29   
30   and
31   
32        BE IT FURTHER RESOLVED that a certified copy of this
33   Concurrent Resolution be transmitted to the Auditor.
34   
35 
36 
37 
38                         OFFERED BY:  ____________________________