Report Title:
State Funds; Allotment; Restrictions
Description:
Limits the governor's ability to restrict funds. Requires governor to release funds appropriated by the legislature unless an actual revenue shortfall will occur as a result of the funds' release. Requires funds to be released within 90 days of an appropriation's passage. (HB1666 HD1)
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1666 |
|
TWENTY-THIRD LEGISLATURE, 2005 |
H.D. 1 |
|
|
STATE OF HAWAII |
||
|
|
A BILL FOR AN ACT
relating to state funds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 37-35, Hawaii Revised Statutes, is amended to read as follows:
"§37-35 Estimated expenditures; approval. (a) The director of finance shall review all estimates submitted under section 37-34 and, having due regard for:
(1) The probable further needs of the department or establishment for the remainder of the term for which the appropriation was made;
(2) The terms and purposes of the appropriation, the progress of collection of revenues, and condition of the treasury; and
(3) The probable receipts and total cash requirements for the ensuing quarter,
shall approve, increase, or reduce the amount of the estimate[; provided that the].
(b) The director of finance shall not decrease a department's estimate unless the release of the estimated funds will result in a shortfall in the treasury. For estimates provided by the University of Hawaii, the director of finance shall approve the estimates submitted by the University of Hawaii when:
(1) The sum of the estimates for each funding source does not exceed the applicable allotment ceilings established by the governor under section 37-34;
(2) The progress of collection of revenues, the condition of the treasury, and the probable receipts and total cash requirements for the ensuing quarter permit; and
(3) All other legal requirements are satisfied.
The director shall act promptly upon all estimates and notify each department or establishment of its allotment, and shall notify the comptroller."
SECTION 2. Section 37-36, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The director of finance may modify or amend any previous allotment upon notice to the department or establishment concerned; provided that:
(1) For the University of Hawaii, the director of finance may modify or amend any previous allotment only upon application of or notice to the university[,] and upon public declaration, which shall be made ten days prior to the modification or amendment taking effect;
(2) The modification or amendment shall be made only to avoid an illegal result or [in anticipation of a] if the release of an unmodified allotment will result in an actual revenue shortfall;
(3) No deficit or undue reduction of funds to meet future needs of the department or establishment will result from the modification or amendment; and
(4) No modification or amendment shall reduce an allotment below the amount required to meet valid obligations or commitments previously incurred against the allotted funds."
SECTION 3. Section 37-37, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Except as provided in subsection (b), when the director of finance determines at any time that the [probable] actual receipts from taxes or any other sources for any appropriation [will be] are less than was anticipated, and that consequently the amount available for the remainder of the term of the appropriation or for any allotment period [will be] is less than the amount estimated or allotted therefor, the director [shall], with the approval of the governor and after notice to the department or establishment concerned, shall reduce the amount allotted or to be allotted; provided that no reduction reduces any allotted amount below the amount required to meet valid obligations or commitments previously incurred against the allotted funds."
SECTION 4. Section 37-74, Hawaii Revised Statutes, is amended to read as follows:
"§37-74 Program execution. (a) Except as limited by policy decisions of the governor, appropriations by the legislature, and other provisions of law, the several agencies responsible for administering state programs shall administer their program assignments and shall be responsible for their proper management.
(b) The appropriations by the legislature for a biennium shall be allocated between the two fiscal years of the biennium in the manner provided in the budget or appropriations act and as further prescribed by the director of finance. The amounts allocated for each fiscal year shall be subject to the allotment system prescribed in chapter 37, part II. Each agency (except the courts), in estimating its quarterly requirements under chapter 37, part II, shall prepare a plan for the fiscal year for the operation of each of the programs it is responsible for administering. The operations plan shall be in such form and content as the department of budget and finance may prescribe. It shall be submitted, together with the estimated quarterly requirements, to the department of budget and finance on such date as the department may prescribe.
(c) The department of budget and finance shall:
(1) Review each operations plan to determine:
(A) That it is consistent with the policy decisions of the governor and appropriations by the legislature;
(B) That it reflects proper planning and efficient management methods; and
(C) That appropriations have been made for the planned purpose and will not be exhausted before the end of the fiscal year;
provided that the department of budget and finance shall review the operations plan submitted by the University of Hawaii solely for consistency with the allotment ceilings established by the governor under section 37-34, appropriations by the legislature, the requirements of chapter 37D, and the status of revenues to support operations plans for all state programs;
(2) Approve the operations plan if satisfied that it meets the requirements under paragraph (1). Otherwise, the department of budget and finance shall require revision of the operations plan in whole or in part; and
(3) Modify or withhold the planned expenditures at any time during the appropriation period if the department of budget and finance finds that the expenditures are greater than those necessary to execute the programs at the level authorized by the governor and the legislature, or that state receipts and surpluses will be insufficient to meet the authorized expenditure levels; provided that the planned expenditures for the University of Hawaii may be modified or withheld only in accordance with sections 37-36 and 37-37.
(d) No appropriation transfers or changes between programs or agencies shall be made without legislative authorization; provided that:
(1) Authorized transfers or changes, when made, shall be reported to the legislature;
(2) Except with respect to appropriations to fund financing agreements under chapter 37D, the University of Hawaii shall have the flexibility to transfer appropriated funds and positions for the operating cost category among programs, among cost elements in a program, and between quarters, as applicable; except with respect to appropriations to fund financing agreements under chapter 37D, the department of education shall have the flexibility to transfer appropriated funds and positions for the operating cost category among programs and among cost elements in a program, and between quarters, as applicable; and the Hawaii health systems corporation shall have the flexibility to transfer special fund appropriations among community hospitals facilities as applicable; provided that the Hawaii health systems corporation shall maintain the integrity and services of each individual facility and shall not transfer appropriations out of any facility that would result in a reduction of services offered by the facility, with due regard for statutory requirements, changing conditions, the needs of the programs, and the effective utilization of resources; and
(3) The university and the department of education shall account for each transfer implemented under this subsection in quarterly reports to the governor and annual reports at the end of each fiscal year to the legislature and the governor, which shall be prepared in the form and manner prescribed by the governor and shall include information on the sources and uses of the transfer.
(e) Appropriations shall be released within ninety days of approval by the legislature."
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2010.