Bill Text: HI HB2317 | 2016 | Regular Session | Introduced
Bill Title: Appropriation; Emergency and Budget Reserve Fund ($)
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2016-06-22 - Act 104, 06/21/2016 (Gov. Msg. No. 1205). [HB2317 Detail]
Download: Hawaii-2016-HB2317-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2317 |
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TWENTY-EIGHTH LEGISLATURE, 2016 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
MAKING AN APPROPRIATION TO THE EMERGENCY AND BUDGET RESERVE FUND.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The State is emerging from one of the most challenging economic periods in its history. During the last several years, extreme measures had to be taken to keep the state solvent, including: furloughs; temporary salary reductions; reductions‑in‑force; forced downsizing of programs and services; purchasing and hiring freezes; and enactment of temporary revenue enhancements. One of the clear lessons learned from this experience is the necessity of having sufficient fiscal reserves to help carry the state through the worst conditions. Although the Great Recession officially ended in 2009, the State is just beginning to experience the positive effects of economic recovery. Now that the economy is rebounding and more revenues are available, a concerted effort must be made to further capitalize the State's depleted fiscal reserves as expeditiously as possible.
To this end, several measures have been enacted to accelerate replenishment. Act 124, Session Laws of Hawaii 2011, which temporarily diverted tobacco settlement moneys from the emergency and budget reserve fund to the general fund in fiscal years 2011‑2012 and 2012‑2013, sunsets and transfers from the tobacco settlement into the emergency and budget reserve fund will resume starting in fiscal year 2013‑2014. Act 267, Session Laws of Hawaii 2013, appropriated an additional $50,000,000 in fiscal year 2013‑2014 to the emergency and budget reserve fund.
As is fiscally prudent, this Act proposes to further capitalize the fiscal reserves by transferring an additional $100,000,000 to the emergency and budget reserve fund in fiscal year 2016‑2017. This will bring the projected fiscal year 2016‑2017 balance of the emergency and budget reserve fund up to $215,900,000 (including the re-appropriation of Act 202, Session Laws of Hawaii 2015, appropriation) providing a total of over $398,300,000 in fiscal reserves for both the emergency and budget reserve fund and the Hawaii hurricane relief fund, which is 5.53 per cent of general fund revenues.
The purpose of this Act is to appropriate general funds to the emergency and budget reserve fund to help ensure the State's fiscal stability in future economic downturns. As the State continues its economic recovery, accelerated capitalization of these fiscal reserve funds is prudent and fiscally sound.
SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $100,000,000 or so much thereof as may be necessary for fiscal year 2016‑2017 for the purpose to further capitalize 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. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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BY REQUEST |
Report Title:
Appropriation; Emergency and Budget Reserve Fund
Description:
Makes a general fund appropriation of $100,000,000 for fiscal year 2016‑2017 to further capitalize the Emergency and Budget Reserve Fund.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
