STAND. COM. REP. NO. 1084

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 993

       H.D. 2

 

 

 

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. 993, H.D. 2, entitled:

 

"A BILL FOR AN ACT PROPOSING AN AMENDMENT TO THE HAWAII CONSTITUTION, RELATING TO THE DISPOSITION OF PROJECTED EXCESS REVENUES,"

 

begs leave to report as follows:

 

     The purpose of this measure is to propose a constitutional amendment concerning the disposition of projected excess state revenues.

 

     Specifically, the measure requires that in any regular session of the Legislature during which the Council on Revenues estimates that for a second consecutive year, the general fund revenues in the current fiscal year will exceed the general fund revenues collected in the prior fiscal year by at least seven per cent, the Legislature shall set aside:

 

     (1)  One per cent of general fund revenues collected in the prior fiscal year as a tax credit or tax refund for state taxpayers; and

 

     (2)  Moneys in excess of the seven per cent of the amount by which the current fiscal year revenues are estimated to exceed revenues from the prior fiscal year, and deposit the revenues into the emergency and budget reserve fund, subject to certain conditions.

 

     Your Committee received testimony from one organization that supported the purpose and intent of the measure.  One state department opposed the measure, and one state department and one organization submitted comments.  The testimony may be reviewed on the Legislature's website.

 

     Your Committee finds that the current state and national economy illustrates the wisdom of establishing a financial reserve during a strong economy.  While your Committee agrees that an increase in general revenues should be shared with taxpayers, your Committee also believes it is prudent to set aside a portion of the estimated increase to meet state obligations when the State's financial situation is not as prosperous.

 

     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. 993, H.D. 2, and recommends that it pass Second Reading and be referred to the Committee on Judiciary and Government Operations.

 

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

 

 

 

____________________________

DONNA MERCADO KIM, Chair