STAND. COM. REP. NO.  177-10

 

Honolulu, Hawaii

                , 2010

 

RE:   H.B. No. 2964

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Sir:

 

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 2964 entitled:

 

"A BILL FOR AN ACT RELATING TO SALARIES,"

 

begs leave to report as follows:

 

     The purpose of this bill is to alleviate some of the effects of the current fiscal crisis the State is facing by increasing the amount of the salary reductions for members of the Legislature for the second half of the 2009–2010 fiscal biennium.

 

     No testimony was received on this bill.

 

     Your Committee finds that the United States is facing some of the most difficult economic times in recent memory, a period of time that has sometimes been dubbed "The Great Recession."  Hawaii is not immune to these dire economic conditions with the State currently facing an estimated budget deficit of $1.2 billion.  Although salary increases were approved by the salary commission for members of the executive, legislative, and judicial branches, these increases were approved at a time when Hawaii's economic future looked bright.

 

     Recognizing the situation, the Legislature enacted Act 85, Session Laws of Hawaii 2009, which implemented a salary reduction of five percent for public executives, judges, and legislators for a two-year period.  However, although economic conditions have shown signs of improvement, the State continues to face a large fiscal deficit.  In recognition of Hawaii's current fiscal situation, your Committee finds that further reducing the salaries of public executives, judges, and legislators for the second half of the 2009-2010 fiscal biennium would be the most prudent thing to do at this time.

 

     Accordingly, your Committee has amended this bill by:

 

     (1)  Including salary reductions of 8.07 percent for the governor, the lieutenant governor, the justices and judges of all state courts, the administrative director of the State or an equivalent position, the department heads or executive officers and the deputies or assistants of various state departments; and

 

     (2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

 

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2964, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2964, H.D. 1, and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

 

 

 

 

____________________________

KARL RHOADS, Chair