Bill Text: HI HB1819 | 2012 | Regular Session | Amended

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Bill Title: Emergency and Budget Reserve Fund; General Fund Balance

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-02-28 - (H) The committee(s) on FIN recommend(s) that the measure be deferred. [HB1819 Detail]

Download: Hawaii-2012-HB1819-Amended.html

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STAND. COM. REP. NO.  331-12

 

Honolulu, Hawaii

                , 2012

 

RE:   H.B. No. 1819

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

 

Sir:

 

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 1819 entitled:

 

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

 

begs leave to report as follows:

 

     The purpose of this measure is to ensure that the Emergency and Budget Reserve Fund has adequate reserves during times of emergency, economic downturn, or unforeseen reduction in revenues while addressing the unfunded liability of the Hawaii Employer-Union Health Benefits Trust Fund.  Specifically, this measure:

 

     (1)  Transfers into the Emergency and Budget Reserve Fund thirty percent of the general fund balance at the close of the fiscal year when general fund revenues for each of two successive fiscal years exceed revenue for each of the preceding fiscal years by five percent; and

 

     (2)  Requires that thirty percent of the general funds deposited into the Emergency and Budget Reserve Fund be used to address the unfunded liability of the Hawaii Employer-Union Health Benefits Trust Fund.

 

     The Department of Budget and Finance testified in support of the intent of this measure.  The Tax Foundation of Hawaii provided comments.

 

     As the State experienced difficult economic times over the past few years, the Emergency Budget and Reserve Fund has been steadily depleted while there have been no new sources of revenue to replenish it.  Your Committee also finds that the unfunded liability of the Hawaii Employer-Union Health Benefits Trust Fund continues to grow and must be addressed.  While developing a means to begin to address both the development of reserves and address the unfunded liability issue may be painful, your Committee finds that in times of economic prosperity, it is appropriate to divert funds from the general revenues of the State under certain circumstances to ensure that funds are available for future fiscal emergencies and to fund the State's unfunded liabilities.

 

     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. 1819 and recommends that it pass Second Reading 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