HCR264.DOC

WHEREAS, due in large part to the effects of the global credit and financial crisis, Hawaii, as well as the rest of the nation, is in the midst of one of the most challenging economic times it has ever faced: some of the leading economic indicators have forecast numbers not seen since the Great Depression of the 1930s; and

WHEREAS, the domino effect caused by this situation has resulted in greater unemployment, increased home foreclosures, massive layoffs, and a decrease in the purchasing power of the individual American, who now has less disposable income; and

WHEREAS, the global recession has drastically reduced government revenues across the United States, and many states, including Hawaii, have increased taxes and reduced funding for government programs and services to balance their budgets; and

WHEREAS, a number of states have also implemented, or intend to implement, layoffs and furloughs of government employees, and some states are even considering government-wide shutdowns to help ease the economic strain; and

WHEREAS, in Hawaii, the depth and breadth of the "Great Recession" continue to erode the fragile status of a state budget already experiencing a major deficit; and

WHEREAS, numerous economic factors, including downturns in Hawaii's two major industries, tourism and construction, have had a tremendous impact on the state budget and have greatly contributed to the large deficit the State now faces; and

WHEREAS, although Hawaii's economy had been performing very well over recent years, with the lowest unemployment in the nation and many years of budget surpluses, the recent meltdown of the global economy that began in the latter portion of 2008 has severely reduced revenue projections and collections; and

WHEREAS, since the crisis began, Hawaii's residents have lost jobs, investments, and homes; there has been a decrease in the number of visitor arrivals; and consumer spending has declined; and

WHEREAS, as a result, the 2009 Legislature faced a historic revenue shortfall, with the latest forecast adding $40 million to the state budget deficit, which the Council on Revenues now projects will be $1.1 billion through June 2011; and

WHEREAS, the Legislature recognizes that difficult choices must continue to be made to address this budget shortfall, and that if circumstances remain unchanged, the current budget shortfall of over $1.1 billion will require a minimum of reductions in spending of at least $550 million per year over the next two years; and

WHEREAS, while some solutions to solve the current fiscal crisis have been or are currently being implemented, additional revenue sources are still sorely needed to continue the daily operations of the State, including essential services to residents and visitors alike, so it is critical that the gaping shortfall in State revenues be addressed as soon as reasonably possible; and

WHEREAS, the State holds title to many parcels of land that are not essential to the provision of public health, safety, and welfare services by the State or counties, and these lands may be sold to close or reduce the looming deficit; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-fifth Legislature of the State of Hawaii, Regular Session of 2010, the Senate concurring, that the Legislative Reference Bureau (LRB) is requested to evaluate the State's inventory of lands to identify parcels that can be sold in 2011; and

BE IT FURTHER RESOLVED that ceded lands and lands that are essential to the provision of public health, safety, and welfare services by the State or counties, be excluded from the parcels that could be sold; and

BE IT FURTHER RESOLVED that LRB is requested to submit a report of its findings and recommendations, including any proposed legislation, to the Legislature 20 days prior to the convening of the 2011 Regular Session; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Governor, Chairperson of the Board of Land and Natural Resources, Mayor of each county, and Director of the Legislative Reference Bureau.

	OFFERED BY:	_____________________________

Report Title:

Sellable Lands; Legislative Reference Bureau

HOUSE OF REPRESENTATIVES	H.C.R. NO.	264
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII