HOUSE OF REPRESENTATIVES	H.R. NO.	145
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII

HOUSE RESOLUTION

Requesting the Office of the auditor to conduct a study regarding special funds and revolving funds.

     WHEREAS, non-general funds, such as special, revolving, federal, and trust funds, exist outside the State's main financial account, or general fund; and

     WHEREAS, nearly half of the State's operating budget is contained in non-general funds, which affects the Legislature's ability to direct spending; and

     WHEREAS, the Legislature often "raids" money in special or revolving funds as a way to access money when the general fund has shortfalls; and

     WHEREAS, these fund transfers lack a systematic and structured review process which has resulted in serious financial consequences to the State; and

     WHEREAS, the Office of the Auditor issued a report in July 2012 outlining the pitfalls of the use of non-general funds for State operating moneys; and

     WHEREAS, many non-general funds have outlived their usefulness and are not used properly; and

     WHEREAS, the State must utilize all the moneys at its disposal in an effective and efficient manner; and

     WHEREAS, major financial concerns, such as the State's unfunded liabilities, warrant a major re-assessment and overhaul of non-general funds; and

     WHEREAS, unfunded liabilities pose a serious financial burden to the State and a study should be conducted to determine which non-general funds are failing to effectuate the purpose for which they were originally intended and then to determine if such moneys can be applied toward the State's unfunded liabilities; now, therefore,

     BE IT RESOLVED by the House of Representatives of the Twenty-seventh Legislature of the State of Hawaii, Regular Session of 2013, that the Office of the Auditor is requested to conduct a study regarding special funds and revolving funds to:

(1)  Identify their inefficiencies and make recommendations for an effective monitoring process;

(2)  Identify specific special and revolving funds that do not meet or no longer meet their criteria for continuance set out in law;

(3)  Create a checklist for establishing funds and monitoring funds, including specifying regular review dates; and

(4)  Create a checklist of inefficient special or revolving funds that should be terminated and the moneys therein transferred to the general fund or used to reduce the State's unfunded liabilities; and

     BE IT FURTHER RESOLVED that the Office of the Auditor is requested to submit a report of its findings and recommendations, including any necessary proposed legislation, to the Legislature no later than twenty days before the Regular Session of 2014; and

     BE IT FURTHER RESOLVED that a certified copy of this Resolution be transmitted to the Acting State Auditor.

OFFERED BY:

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Report Title: 

Special and Revolving Funds; Auditor; Study; Unfunded Liabilities