STAND. COM. REP. NO. 2661

Honolulu, Hawaii

RE:    S.B. No. 2840

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 2840 entitled:

"A BILL FOR AN ACT RELATING TO THE GENERAL ASSISTANCE PROGRAM,"

begs leave to report as follows:

     The purpose and intent of this measure is to provide flexibility to the Department of Human Services by allowing it to draw from other funds appropriated to the Department to offset budget shortfalls for general assistance benefit payments caused by an increase in the number of general assistance recipients.

     The Department of Human Services submitted written comments in support of the measure.

     Your Committee finds that under current law, as additional beneficiaries are added to the general assistance program, the monthly payments to each recipient must be reduced or the Department of Human Services must request an emergency appropriation from the Legislature.  Your Committee notes that over the past few years, general assistance payments have ranged from $353 to $234 per month.  Providing the Department of Human Services with the authority to reallocate funds will provide general assistance beneficiaries with a more stable monthly benefit payment without requiring the Department to request an emergency appropriation from the Legislature.

     Your Committee has amended this measure by:

     (1)  Changing the effective date to July 1, 2050, to encourage further discussion on the measure; and

     (2)  Making technical nonsubstantive amendments for purposes of style, clarity, and consistency.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2840, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2840, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair