STAND. COM. REP. NO.  727

 

Honolulu, Hawaii

                , 2009

 

RE:   H.B. No. 573

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Sir:

 

     Your Committee on Finance, to which was referred H.B. No. 573 entitled:

 

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

 

begs leave to report as follows:

 

     The purpose of this bill is to build up the State's financial reserves in preparation for the next economic downturn.

 

     This bill requires that whenever the State general fund balance at the close of any fiscal year represents a carryover cash surplus, the Director of Finance shall deposit 15 percent of the balance into the Emergency and Budget Reserve Fund (Fund).

 

     The Hawaii Government Employees Association testified in support of this bill.  The Department of Budget and Finance and Tax Foundation of Hawaii offered comments.

 

     Your Committee has amended this bill by:

 

     (1)  Replacing the specific percentage of the cash surplus to be deposited into the Fund with provisions requiring that up to an unspecified percentage be deposited;

 

     (2)  Changing the effective date to July 1, 2020, to encourage further discussion; and

 

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

 

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 573, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 573, H.D. 1, and be placed on the calendar for Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Finance,

 

 

 

 

____________________________

MARCUS R. OSHIRO, Chair