Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Judiciary and Hawaiian Affairs, to which was referred S.B. No. 2875 entitled:

begs leave to report as follows:

The purpose of this measure is to propose amendments to the Constitution of the State of Hawaii to clarify that the Legislature shall balance general fund appropriations with the State's current estimated general fund revenues and unencumbered cash balances.

Testimony in support of this measure was submitted by the Department of Budget and Finance. Testimony in opposition to this measure was submitted by the Tax Foundation of Hawaii.

Your Committee finds that there are no requirements for the Legislature to balance its spending with estimated revenues. Your Committee further finds that there is a need to require the Legislature to only appropriate moneys from the general fund that do not exceed the State's current estimated general fund revenues and unencumbered cash balances for any fiscal year in a fiscal biennium. Your Committee believes that this measure will amend the Constitution of the State of Hawaii to require the Legislature to follow these requirements.

As affirmed by the record of votes of the members of your Committee on Judiciary and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2875 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.