WHEREAS, the Legislature finds that although Hawaii's economy has recovered somewhat from the turmoil wrought by the terrorist attacks of September 11, 2001, the future is still uncertain; and

WHEREAS, the potential for regional conflicts in the Middle East and North Korea, and additional acts of terrorism further cloud the picture with respect to tourism and energy prices; and

WHEREAS, the depressed economic state has resulted in the lack of adequate funding for state departments, agencies, and programs, thereby compromising the number and quality of services provided to our State's residents; and

WHEREAS, included in those areas suffering from lack of adequate funding are our public schools which jeopardizes the education and future of our youth; and

WHEREAS, the scarcity of additional funding for state departments, agencies, and programs necessitates the use of new and innovative approaches for finding money; and

WHEREAS, Article VII, Section 5 of the Hawaii State Constitution, prohibits the expenditure of state moneys in excess of general fund revenues; and

WHEREAS, Article VII, Section 6 of the Hawaii State Constitution prohibits the State from retaining excess revenues by mandating tax refunds or tax credits, thereby prohibiting any excess revenues from being appropriated and expended; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-Second Legislature of the State of Hawaii, Regular Session of 2003, the Senate concurring, that the Office of the Auditor (Auditor) is requested to conduct a study on the effects of a repeal of Article VII, sections 5 and 6 of the Hawaii State Constitution and determine whether such repeals will result in more efficient utilization of state revenues during austere fiscal times, such as providing critical funding for state departments, agencies, and programs; and

BE IT FURTHER RESOLVED that the Office of the Auditor submit its report, findings, and recommendations to the Legislature no later than twenty days prior to the convening of the Regular Session of 2004; and

BE IT FURTHER RESOLVED that a certified copy of this Concurrent Resolution be transmitted to the Auditor.

Report Title:

Auditor to conduct a study to repeal Const. provisions requiring expenditure controls & disposition of excess revenues & determine whether repeals will allow for utilization of state moneys in excess of general fund revenues to provide additional funding.