Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 631 entitled:

begs leave to report as follows:

The purpose of this measure is to require the Governor or the Director of Finance to hold public hearings prior to restricting or withholding funds appropriated by the Legislature.

The measure also requires that the public hearing be conducted pursuant to chapter 92, Hawaii Revised Statutes, the State's "sunshine law".

Your Committee finds that the budget process includes many oversight activities. During the appropriation process, the Legislature must determine the overall value of a program compared to other programs that compete for the same funding from limited state resources. However, past practice has indicated the Administration's disregard for the Legislature's diligence in carefully crafting a sound budget and appropriations thereunder. In many instances, the Administration has restricted, withheld, or otherwise failed to expend moneys appropriated by the Legislature for purposes that were painstakingly scrutinized during numerous public hearings and legislative deliberations. By requiring the Governor or the Director of Finance to conduct public hearings on gubernatorial budget restrictions, withholding of funds, and other actions that result in the nonexpenditure of lawfully appropriated funds, the Legislature and the general citizenry of the State will be able to ascertain, in a public venue, the reasons for the Administration's actions.

Your Committee has amended the measure by:

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 631, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 631, S.D. 1, and be placed on the calendar for Third Reading.