STAND. COM. REP. NO. 2340

Honolulu, Hawaii

RE:    S.B. No. 2395

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Madam:

     Your Committees on Ways and Means and Judiciary and Government Operations, to which was referred S.B. No. 2395 entitled:

"A BILL FOR AN ACT RELATING TO THE BUDGET,"

beg leave to report as follows:

     The purpose of this measure is to establish that the budget shall prevail over statutory law whenever they are in conflict.

     The measure also requires the Governor to execute the provisions of the state budget and final budget worksheets and to report to the Legislature on all actions taken within thirty days of the enactment of the budget.

     Your Committees received testimony in support of this measure from the Hawaii State Teachers Association and the Hawaii Government Employees Association.  Testimony in opposition to the measure was received from the Attorney General and the Department of Budget and Finance.  Written testimony presented to the Committees may be reviewed on the Legislature's website.

     Your Committees find that past appropriations approved by the Legislature for a variety of programs, services, and capital needs have either not been released by the Administration or have been transferred to finance other programs of the Administration's choosing.  This practice has had grave consequences for thousands of organizations and individuals that participate in the legislative process.  Thus, your Committees believe that the state budgetary process requires corrective modification to restore the constitutional balance between the legislative and executive branches of state government.  This measure restores that balance, along with other legislation introduced during this legislative session to better define the budgetary responsibilities and duties of the legislative and executive branches.

Your Committees have amended this measure by allowing the Administration to disregard this measure when there is an underestimation of state tax revenues.  Your Committees have also amended the measure by removing the requirement that the Governor execute the provisions of the final budget worksheets.

     As affirmed by the records of votes of the members of your Committees on Ways and Means and Judiciary and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2395, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2395, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committees on Ways and Means and Judiciary and Government Operations,

____________________________ BRIAN T. TANIGUCHI, Chair

____________________________ DONNA MERCADO KIM, Chair