Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 661 entitled:

begs leave to report as follows:

The purpose of this measure is to require the Governor or Director of Finance, prior to implementing any restriction on the budget allocation of any state department or agency, to hold a public hearing on the restrictions.

This is for the express purpose of informing the public and affording people the opportunity to respond to the proposed restrictions.

Your Committee finds that the restriction of funds by the Governor to avoid an illegal result—-such as deficit spending—-is a wholly appropriate use of executive power. The restriction of funds to thwart the Legislature's policies, however, is a gross misuse of this executive power because it deprives the Legislature of the opportunity to override what amounts to a line-item veto. The contravention of legislative policy through the imposition of secretive budget restrictions hides from public view the very foundation of democracy—-free and open discussion.

Your Committee has amended this measure by changing its effective date to July 1, 2075 to make the measure defective in order to promote continuing discussion.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 661, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 661, S.D. 1, and be placed on the calendar for Third Reading.