STAND. COM. REP. NO.  1584

Honolulu, Hawaii

                , 2017

RE:   S.B. No. 712

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 712 entitled:

"A BILL FOR AN ACT RELATING TO THE VARIANCE REPORT,"

begs leave to report as follows:

The purpose of this measure is to require the inclusion of additional information in the variance report submitted annually by the Governor to the Legislature to allow the Legislature to better align its budget decisions with the actual needs and expenditures of the departments.

     More specifically, this measure requires inclusion of the following information in the variance report, commencing with the Regular Session of 2019:

     (1)  Means of financing information and cost element breakdowns for comparison:

     (A)  Budgeted appropriations and actual expenditures; and

          (B)  Position ceiling and filled positions; and

     (2)  A summary by department of:

          (A)  Cost element breakdowns of expenditures; and

          (B)  The position ceiling in comparison to total positions filled.

The Department of Budget and Finance provided comments.

     Your Committee has amended this measure by:

     (1)  Changing the effective date to July 1, 2030, to facilitate further discussion; and

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

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 712, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 712, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair