STAND. COM. REP. NO. 1485

Honolulu, Hawaii

, 2005

RE: H.B. No. 1672

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1672 entitled:

"A BILL FOR AN ACT RELATING TO THE BUDGET,"

begs leave to report as follows:

The purpose of this measure is to require the Governor or Director of Finance to conduct a hearing before restricting or withholding any funds appropriated by the Legislature.

Your Committee finds that the restriction or withholding of state funds by the Governor has become a major problem for many state-financed programs. The State depends on these programs to provide critical services to meet the many needs of the community. But the delivery of these services is placed in limbo when the administration restricts or withholds funding for these services.

It is not the intent of this bill to compromise or reduce the Governor's budgetary powers that are necessary to administer the State's multi-billion-dollar budget. But rather, it is the intent of your Committee to support and assist state-financed programs by requiring the administration to inform them on the status of restricted or withheld funds. The sharing of this information will assist program administrators to better prepare budgets and to service the needs of the community.

Accordingly, your Committee has amended the bill by expanding its scope to provide grant recipients under chapter 42F, Hawaii Revised Statutes, with notice with respect to the status of unreleased funds. Your Committee has also amended the bill by:

(1) Requiring budget allotment estimates to include all funds lawfully budgeted and appropriated;

(2) Requiring only the director of finance to conduct hearings with respect to restricted or withheld state funds; and

(3) Making technical amendments for purposes of clarity and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1672, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1672, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

BRIAN T. TANIGUCHI, Chair