Proposes constitutional amendments to require the department of education to submit its proposed budget directly to the legislature to increase the department's autonomy over fiscal matters.

A BILL FOR AN ACT

SECTION 1. The legislature finds that giving the department of education increased autonomy will provide for a more efficient and effective educational system for the State. In particular, requiring the department to submit its budget requests directly to the legislature will increase the department's control over its fiscal matters and streamline the budget process. This will further enable the department to provide schools with the necessary services and materials they require and contribute to the overall improvement of the State's educational system.

The purpose of this Act is to propose amendments to article VII of the Constitution of the State of Hawaii to require the department of education to submit its budget requests directly to the legislature.

SECTION 2. Article VII, section 8, of the Constitution of the State of Hawaii is amended to read as follows:

"THE BUDGET

Section 8. Within such time prior to the opening of each regular session in an odd-numbered year as may be provided by law, the governor shall submit to the legislature a budget in a form provided by law setting forth a complete plan of proposed expenditures of the executive branch, excluding the department of education, estimates as provided by law of the aggregate expenditures of the judicial and legislative branches, and anticipated receipts of the State for the ensuing fiscal biennium, together with such other information as the legislature may require. A complete plan of proposed expenditures of the judicial branch for the ensuing fiscal biennium shall be submitted by the chief justice to the legislature in a form and within such time prior to the opening of each regular session in an odd-numbered year as shall be provided by law. The superintendent of education shall submit a complete plan of proposed expenditures of the department of education for the ensuing fiscal biennium to the legislature in a form and within such time prior to the opening of each regular session in an odd-numbered year as shall be provided by law. The budget prepared by the governor and the plan of proposed expenditures prepared by the chief justice and superintendent of education shall also be submitted in bill form. The governor shall also, upon the opening of each such session, submit bills to provide for such proposed expenditures and for any recommended additional revenues or borrowings by which the proposed expenditures are to be met. The proposed general fund expenditures in the plan of proposed expenditures, including estimates of the aggregate expenditures of the judicial and legislative branches[,] submitted by the governor, and the proposed expenditures of the department of education submitted by the superintendent of education, shall not exceed the general fund expenditure ceiling established by the legislature under section 9 of this article; provided that proposed general fund expenditures in the plan may exceed such ceiling if the governor sets forth the dollar amount and the rate by which the ceiling will be exceeded and the reasons therefor."

SECTION 3. Article VII, section 9 of the Constitution of the State of Hawaii is amended to read as follows:

"LEGISLATIVE APPROPRIATIONS; PROCEDURES;

Section 9. In each regular session in an odd-numbered year, the legislature shall transmit to the governor an appropriation bill or bills providing for the anticipated total expenditures of the State for the ensuing fiscal biennium. In such session, no appropriation bill, except bills recommended by the governor for immediate passage, or to cover the expenses of the legislature, shall be passed on final reading until the bill authorizing operating expenditures for the ensuing fiscal biennium, to be known as the general appropriations bill, shall have been transmitted to the governor.

In each regular session in an even-numbered year, at such time as may be provided by law, the governor may submit to the legislature a bill to amend any appropriation for operating expenditures of the current fiscal biennium, other than for the department of education, to be known as the supplemental appropriations bill, and bills to amend any appropriations for capital expenditures of the current fiscal biennium, and at the same time the governor shall submit a bill or bills to provide for any added revenues or borrowings that such amendments may require. In each regular session in an even-numbered year, at such time as may be provided by law, the superintendent of education shall submit to the legislature a bill to amend any appropriations for operating expenditures of the current fiscal biennium of the department of education, to be known as the department of education supplemental appropriations bill. In each regular session in an even-numbered year, bills may be introduced in the legislature to amend any appropriation act or bond authorization act of the current fiscal biennium or prior fiscal periods. In any such session in which the legislature submits to the governor a supplemental appropriations bill, no other appropriation bill, except bills recommended by the governor for immediate passage, or to cover the expenses of the legislature, shall be passed on final reading until such supplemental appropriations bill shall have been transmitted to the governor.

Notwithstanding any other provision to the contrary, the legislature shall establish a general fund expenditure ceiling which shall limit the rate of growth of general fund appropriations, excluding federal funds received by the general fund, to the estimated rate of growth of the State's economy as provided by law. No appropriations in excess of such ceiling shall be authorized during any legislative session unless the legislature shall, by a two-thirds vote of the members to which each house of the legislature is entitled, set forth the dollar amount and the rate by which the ceiling will be exceeded and the reasons therefor."

SECTION 4. The question to be printed on the ballot shall be as follows:

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This amendment shall take effect upon compliance with article XVII, section 3, of the Constitution of the State of Hawaii.