STAND. COM. REP. NO. 532

Honolulu, Hawaii

RE:    S.B. No. 724

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 724 entitled:

"A BILL FOR AN ACT RELATING TO NON-DISCRETIONARY COSTS,"

begs leave to report as follows:

     The purpose and intent of this measure is to require the Department of Budget and Finance to issue annual reports on non-discretionary costs for the purpose of providing indicators of the budgetary situation of the State.

     Specifically, this measure establishes reporting requirements concerning the following general fund costs:

     (1)  Debt service for general obligation bonds;

     (2)  Medicaid service costs; and

     (3)  Employer contributions for pension, retirement, and health benefits for state employees and retirees.

     Your Committee received comments on this measure from the Department of Budget and Finance.

     Your Committee finds that disclosure of non-discretionary costs and related ratios will assist the Legislature in monitoring future financial liabilities and in taking preventative, corrective actions before crises occur.

     Your Committee will continue to work with the Department of Budget and Finance on this measure and related legislation to improve and enhance budgetary information that is required to be submitted to the Legislature.

     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. 724 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

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

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JILL N. TOKUDA, Chair