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THE SENATE |
S.R. NO. |
162 |
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TWENTY-THIRD LEGISLATURE, 2006 |
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STATE OF HAWAII |
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amending the rules of the senate of the twenty-third legislature of the State of Hawaii to require the use of the line item budget format for the senate budget.
WHEREAS, the rules of the Senate may be amended pursuant to Senate Rule 85 with one day's notice of the change by a majority vote of the members of the Senate; and
WHEREAS, for years, the basic format for governmental agency budgeting has been the traditional "line item" format; and
WHEREAS, implemented first in the early 1900s as a "good government" reform measure, the line item budget has been used primarily as an expenditure control device; and
WHEREAS, the line item budget format classifies expenditures on the basis of categories called objects of expenditure (personnel services, contractual services, capital outlay, etc.) and within each category more detailed line-items (salaries, travel, telephones, etc.); and
WHEREAS, this type of budget focuses attention on how much money is spent and for what purpose rather than the activity affected or its outcomes; and
WHEREAS, each object of expenditure (such as salaries, fringe benefits, contractual services, maintenance, capital outlay, etc.) is assigned a specific account number; and
WHEREAS, these numbers are standard across departments and agencies and can be adjusted easily by finance committees or by administrations in times of fiscal shortfalls; and
WHEREAS, line item budgets easily lend themselves to "across the board" adjustments; and
WHEREAS, line item budgets also are useful in determining specific categories of cost; and
WHEREAS, line item budgets usually provide three other types of board or administrative control:
(1) Position control for new hires or continuing positions during the annual budget process;
(2) Individual line item approval for each object of expenditure and for mid-year adjustments; and
(3) Prior approval for equipment purchases, travel, outside contracting etc; and
WHEREAS, although by law, the vast majority of governmental agencies are required to adhere to the line item budget format, the Senate of the State of Hawaii has not been subject to the line item budget format requirement; and
WHEREAS, the Senate of the Twenty-third Legislature of the State of Hawaii believes that fiscal accountability and transparency would be served if the Senate were to adopt the line item budget format; now, therefore,
BE IT RESOLVED by the Senate of the Twenty-third Legislature of the State of Hawaii, Regular Session of 2006, that Senate Rule 4(1) be amended to read as follows (proposed changes underlined):
(1) The Vice-President and the President shall prepare and administer a line item budget for the Senate;
and
BE IT FURTHER RESOLVED that the Clerk of the Senate shall distribute Senate Rule 4(1), as amended by this Resolution, to all Senators and revise the Senate Rules on the Senate's website to reflect this amendment.
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OFFERED BY: |
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Report Title:
Senate Rules; Amendment; Senate Budget; Line Item Format