HB1869

SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

NET GENERAL FUND APPROPRIATION TO UNIVERSITY OF HAWAII

§ -1 Net general fund appropriation to the University of Hawaii. (a) For the purposes of this section, "net general fund appropriation to the University of Hawaii" means the general fund appropriation to the University of Hawaii less the sum of the mandatory transfers of general funds to the following:

(1) The department of budget and finance for pension accumulation, Social Security and Medicare contributions, health fund contributions, and debt service; and

(2) The department of accounting and general services for risk management costs.

(b) Except as provided under subsection (c), the net general fund appropriation to the University of Hawaii for each fiscal year shall comprise at least ten per cent of the total general fund appropriation to the executive branch.

(c) Any general fund appropriation during a fiscal year under a bill recommended by the governor for immediate passage, but submitted to the legislature while it was not in regular or special session, shall not be counted to compute the minimum ten per cent ratio of subsection (a)."

SECTION 2. Chapter 37, Hawaii Revised Statutes, is amended by adding a new section to part IV to be appropriately designated and to read as follows:

"§37- General funds for the University of Hawaii. (a) The six-year program and financial plan required by section 37‑69 shall conform to this section.

For each of the six future fiscal years covered by the six-year program and financial plan, the proposed net general fund appropriation to the University of Hawaii shall comprise at least ten per cent of the proposed total general fund appropriation to the executive branch.

(b) The budget required under section 37-71 shall conform to this section.

For each fiscal year covered by the budget, the proposed net general fund appropriation to the University of Hawaii shall comprise at least ten per cent of the proposed total general fund appropriation to the executive branch.

If, after the submission of the budget to the legislature, the governor submits a request for a revision of the budget, the requested revision shall not cause the net general fund appropriation to the University of Hawaii in any fiscal year to be reduced below the minimum ten per cent ratio.

(c) A supplemental budget for a fiscal year submitted to the legislature pursuant to section 37-72 shall conform to this section.

Under the proposed amendments of the supplemental budget, the net general fund appropriation to the University of Hawaii for the subject fiscal year shall comprise at least ten per cent of the total general fund appropriation for the fiscal year to the executive branch.

If, after the submission of a supplemental budget to the legislature, the governor submits a request for a revision of the supplemental budget, the requested revision shall not cause the net general fund appropriation to the University of Hawaii in the covered fiscal year to be reduced below the minimum ten per cent ratio.

(d) For the purpose of this section, "net general fund appropriation to the University of Hawaii" means the same as defined under section ‑1."

SECTION 3. Section 37-71, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) The proposed budget shall include:

(1) A statement of the percentage differences between the current biennium recommendations and the previous biennium appropriations for education programs. The information shall be displayed by programs or groups of programs, with corresponding amounts and percentage differences. If any component of an education program is added or removed, the governor shall provide an estimate of how the addition or removal affects the current biennium recommendations;

(2) A statement of the difference between the total amount proposed for the current biennium and the total amount expended in the previous biennium for education programs per pupil; [~~and~~]

(3) The percentage of net general funds expended by the University of Hawaii in each fiscal year of the previous biennium in relation to the total general funds expended in the corresponding fiscal year by the executive branch and, if the percentage is below ten per cent for any fiscal year, a statement explaining the shortfall. For the purpose of this paragraph, "net general funds expended by the University of Hawaii" mean the total general funds expended by the University of Hawaii less the mandatory transfers cited under section ‑1(a)(1) and (2); and

[~~(3)~~] (4) Other financial statements, information, and data that in the opinion of the governor are necessary or desirable in order to make known in all practical detail the programs, program plans, and financial conditions of the State.

As used in this subsection, "education programs" include instructional, personnel, transportation, facilities, facilities repair and maintenance, and other programs deemed appropriate by the department of education."

SECTION 4. Section 37-75, Hawaii Revised Statutes, is amended to read as follows:

"§37-75 Variance report. Not fewer than thirty days prior to the convening of each regular session of the legislature, the governor shall submit to the legislature and to each member thereof a report on program performance for the last completed fiscal year and the fiscal year in progress. In format, the report generally shall follow the fiscal requirements portion of the executive budget or budgets. The report shall include:

(1) At the lowest level of the program structure, for each program contained in the budget finally approved by the legislature for the last completed fiscal year and the fiscal year in progress:

(A) A comparison, by the operating and research and development cost categories, of the budgeted expenditures and the actual expenditures for the last completed fiscal year and the budgeted expenditures and the estimated expenditures for the fiscal year in progress;

(B) A comparison, for the operating and research and development cost categories, of the budgeted expenditures and positions authorized and the actual expenditures and positions filled in the last completed fiscal year and a comparison of the budgeted expenditures and the number of positions authorized for the fiscal year in progress and the actual expenditures and number of positions filled in the first three months of the fiscal year in progress and the estimated expenditures and number of positions expected to be filled in the remaining months of the fiscal year in progress;

(C) The program size indicators and a comparison of the program size anticipated and the size actually realized in the last completed fiscal year and the program size anticipated and the size estimated for the fiscal year in progress;

(D) The effectiveness measures and a comparison of the level of effectiveness anticipated and the level actually attained in the last completed fiscal year and the level of effectiveness anticipated and the level estimated for the fiscal year in progress; and

(E) A narrative explanation of the significant differences for the last completed fiscal year in each of the comparisons made in subparagraphs (A), (B), (C), and (D), including an explanation of the basis upon which the original estimates were made and the reasons why the estimates proved accurate or inaccurate, and a statement of what the actual experience portends for the future of the program in terms of costs, size, and effectiveness;

provided that expenditure amounts in the comparisons shall be shown to the nearest thousand dollars;

(2) Appropriate summaries at each level of the state program structure for each major grouping of programs encompassed therein, showing:

(A) A comparison of the total budgeted expenditure and the total actual expenditure for the last completed fiscal year and the total budgeted expenditure and the total estimated expenditure for the fiscal year in progress; provided that the expenditure amounts shall be shown to the nearest thousand dollars;

(B) The effectiveness measures and a comparison of the level of effectiveness anticipated and the level actually attained in the last completed fiscal year and the level of effectiveness anticipated and the level estimated for the fiscal year in progress; and

(C) A narrative explanation summarizing the major reasons for the differences in the comparisons made for the last completed fiscal year in subparagraphs (A) and (B); [~~and~~]

(3) A narrative explanation of the significant variations in capital improvement costs; provided that capital improvement project variances shall be referenced to the six-year program and financial plan, which shall contain the information specified in section 37‑69(d)(1)(K)[.]; and

(4) A narrative specifying whether the net general fund expenditures for programs of the University of Hawaii in the last completed fiscal year fell below the minimum ten per cent ratio of section ‑1 and whether such expenditures in the fiscal year in progress is anticipated to fall below that minimum ratio. For the purpose of this paragraph, "net general fund expenditures for programs of the University of Hawaii" mean the total general fund expenditures of the University of Hawaii less the mandatory transfers cited under section ‑1(a)(1) and (2)."

SECTION 5. Section 304A-2101, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The general fund budget appropriations for the university for a fiscal year shall be an amount not less than three times and not greater than five times the amount of regular tuition and related fee revenues estimated for that fiscal year[.]; except that the general fund appropriation may be higher for a fiscal year if necessary to conform with the minimum ten per cent ratio of section ‑1."

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2007.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1869
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII