HOUSE OF REPRESENTATIVES	H.B. NO.	2522
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII

A BILL FOR AN ACT

 

 

MAKING APPROPRIATIONS TO RECAPITALIZE STATE FISCAL RESERVES.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  Ongoing effects of one of the most challenging economic periods in Hawaii's history have necessitated the use of the State's reserve funds, mainly the emergency and budget reserve fund and the Hawaii hurricane relief fund.  These funds were used in fiscal year 2010‑2011 to maintain essential education, public health, and public welfare programs.  As of June 30, 2011, the adjusted balances (adjusted to accommodate all of the transfers authorized by Acts 25 and 62, Session Laws of Hawaii 2011) for the emergency and budget reserve fund and the Hawaii hurricane relief fund were approximately $5,500,000 and $8,800,000, respectively.

     Additionally, Act 124, Session Laws of Hawaii 2011, temporarily diverts the tobacco settlement moneys from the emergency and budget reserve fund to the general fund in fiscal years 2011‑2012 and 2012‑2013.  Transfers from the tobacco settlement are the primary source of funds deposited to the emergency and budget reserve fund.

     Finally, bond rating agencies have expressed concern with the near depletion of reserves (such as the emergency and budget reserve fund and the Hawaii hurricane relief fund) in fiscal year 2010‑2011.  To respond to the rating agencies' concern, the legislature is proposing to accelerate recapitalization of its reserves.

     The purpose of this Act is to appropriate general funds to the emergency and budget reserve fund and the Hawaii hurricane relief fund.  As the State continues its economic recovery, accelerated recapitalization of these reserve funds is prudent and fiscally sound.

     SECTION 2.  There are appropriated out of the general revenues of the State of Hawaii the sum of $20,000,000, or so much thereof as may be necessary for fiscal year 2011‑2012, and the sum of $43,700,000, or so much thereof as may be necessary for fiscal year 2012‑2013, for the purposes of recapitalizing the emergency and budget reserve fund.  The sums appropriated shall be expended by the department of budget and finance for the purposes of this Act.

     SECTION 3.  There are appropriated out of the general revenues of the State of Hawaii the sum of $55,000,000, or so much thereof as may be necessary for fiscal year 2011‑2012, and the sum of $56,000,000, or so much thereof as may be necessary for fiscal year 2012‑2013, for the purposes of recapitalizing the Hawaii hurricane relief fund.  The sums appropriated shall be expended by the department of commerce and consumer affairs for the purposes of this Act.

     SECTION 4.  This Act shall take effect upon its approval.

 

INTRODUCED BY:	_____________________________
	BY REQUEST

 

 

Report Title:

Appropriations; Emergency and Budget Reserve Fund; Hawaii Hurricane Relief Fund.

 

Description:

Makes general fund appropriations of $20,000,000 for fiscal year 2011‑2012 and $43,700,000 for fiscal year 2012‑2013 to recapitalize the Emergency and Budget Reserve Fund and makes general fund appropriations of $55,000,000 for fiscal year 2011‑2012 and $56,000,000 for fiscal year 2012‑2013 to recapitalize the Hawaii Hurricane Relief Fund.

 

 

 

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