HOUSE OF REPRESENTATIVES	H.B. NO.	2967
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII

A BILL FOR AN ACT

relating to salaries.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The downturn in the United States and global economy caused by the credit crisis, volatility in the mortgage and financial-securities market, fluctuation in oil prices, and the resulting uncertainty has affected Hawaii and its people.  Unemployment has risen and additional declines in the tourism market and retail sales are anticipated.

     The state is facing unprecedented budget deficits for the balance of fiscal year 2010 and all of fiscal year 2011.  The economic landscape of the state looked considerably different in 2007 when the commission on salaries made the decision to increase the compensation for certain members of the executive, legislative, and judicial branches of the state by as much as thirty-six per cent.  The commission on salaries voted to increase the salaries for certain members of the executive, legislative, and judicial branches of the state in anticipation of continued economic prosperity and some of these members received significant wage increases in 2009 even though the economy was waning.

     In recognition of the current fiscal situation and to lead by example in demonstrating to the people of Hawaii that public officials in what some consider prestigious offices are doing their fair share to conserve scarce public resources, it is only right that these officials reduce their salaries.

     The purpose of this Act is to temporarily reduce the salaries of certain members of the legislative branch of the state to the respective amounts as given prior to the effective date of the increase in salaries as decided by the State Commission on Salaries.

     SECTION 2.  Act 85, Session Laws of Hawaii 2009, Section 2, is amended by amending subsection (b) to read as follows:

     "(b)  Notwithstanding any law to the contrary and notwithstanding the recommendations of the commission on salaries for salary increases, beginning July 1, 2009, and until June 30, [2011,] 2010, the annual salaries of members of the legislature shall be reduced by five per cent from what the salary is as of June 30, 2009, and beginning July 1, 2010, and until June 30, 2011, the annual salaries of members of the legislature shall be reduced by thirty per cent from what the salary was as of June 30, 2009; provided that on July 1, 2011, the salaries of the legislators shall be restored to the level [it] they would have been on July 1, 2009, without the salary decrease under this Act; provided further that the recommendations of the commission on salaries for salary increases for legislators effective January 1, 2012, shall become effective on that date in accordance with the recommendations."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

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

INTRODUCED BY:

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Report Title:

Legislature; Salary Reduction

Description:

Reduces the salaries of legislators by an additional 30 percent beginning July 1, 2010, until June 30, 2011.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.