Prohibits calculation of fringe benefits into UH budget.

A BILL FOR AN ACT

SECTION 1. The University of Hawaii was granted autonomy in 2000 pursuant to an amendment to Article X, section 6 of the State Constitution. Prior thereto, Acts 320 and 321, Session Laws of Hawaii 1986, clarified the state budgetary allotment processes, including for the University of Hawaii.

A current problem for the University of Hawaii is the cost of fringe benefits for personnel. It is estimated that for every one dollar in salary, 35 cents is the additional cost of fringe benefits. The fringe benefits cost is being administratively charged against the University budget, which has the effect of artificially inflating the budget and resulting in less moneys available for expenditures.

The legislature finds that fringe benefits for University of Hawaii positions should not be applied to erode the University budget. Fringe benefits should be charged against the state budget because University employees are state employees.

The purpose of this Act is to prohibit fringe benefits costs from being calculated in the University of Hawaii budget. SECTION 2. Section 304-7.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Any general fund budget appropriation for the University of Hawaii for operating purposes for any fiscal year shall include the consideration of:

University of Hawaii employee fringe benefits shall not be calculated into the formulation of the budget of the University, nor in any allotment thereto, but shall be paid from the general fund."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.