Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 1672 entitled:

begs leave to report as follows:

The purpose of this bill is to require the Governor or Director of Finance to conduct a public hearing, subject to the provisions of Chapter 92, Hawaii Revised Statutes, on proposed restrictions or withholding of any funds lawfully budgeted and appropriated by the Legislature, prior to the imposition of the restrictions or withholding.

The Hawaii Government Employees Association and the Hawaii Youth Services Network testified in support of this measure. The Department of Budget and Finance opposed this bill.

Your Committee finds that during the Regular Session of 2004, a concerted effort was made to address the issues of education reform and crystal methamphetamine. As part of that effort, funds were appropriated to address both concerns. However, over the course of the next year, the Administration delayed the release of a large part of these monies, resulting in uncertainty on the part of educators, administrators, students, parents, service providers, service recipients, and the general public.

The Legislature has long been recognized as the policy-making branch of government. When the withholding of appropriated funds results in undue interference with the execution of approved public policy, and when the withholding of appropriated funds occurs even when there are adequate financial resources available, it is incumbent upon the Legislature to examine the framework of the budgetary process. Your Committee has therefore passed this measure as a means to that end.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1672 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.