STAND. COM. REP. NO. 1195

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 573

       H.D. 1

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred H.B. No. 573, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO EMERGENCY AND BUDGET RESERVE FUND,"

 

begs leave to report as follows:

 

     The purpose of this measure is to strengthen the State's financial reserves.

 

     Specifically, this measure requires an unspecified percentage of any carryover cash surplus in the state general fund balance at the close of a fiscal year to be deposited into the emergency and budget reserve fund.

 

Testimony in support of this measure was submitted by one government agency and one private organization.  Comments on this measure were submitted by one private organization.  The written testimony and comments may be reviewed on the Legislature's website.

 

     Your Committee finds that this measure is essential to ensure that the State has sufficient financial reserves to address the purposes of the emergency and budget reserve fund.  Upon further consideration, however, your Committee believes that a ceiling should be imposed on the amount of any carryover cash surplus to be deposited from the general fund to the emergency and budget reserve fund, to ensure that the State has sufficient resources to meet outstanding obligations.

 

     Accordingly, your Committee has amended this measure to set a ceiling equal to an unspecified percentage of the sum of all general fund revenues received in the prior three fiscal years for deposit from the general fund into the emergency and budget reserve fund in any fiscal year.

 

     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. 573, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 573, H.D. 1, 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,

 

 

 

____________________________

DONNA MERCADO KIM, Chair