STAND. COM. REP. NO. 1754

Honolulu, Hawaii

RE: H.B. No. 1153

H.D. 1

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1153, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO FUNDING ADJUSTMENTS FOR STATE PROGRAMS,"

begs leave to report as follows:

The purpose and intent of this measure is to facilitate the funding of state governmental operations.

Specifically, the measure:

(1) Authorizes supplemental allotments and transfers of unrequired balances for capital improvement program projects and establishes a protocol fund with a cap of $7,000 for each state principal department;

(2) Makes emergency appropriations and commensurate reductions to pay for anticipated operating shortfalls in the fourth quarter due to the limited ability to transfer funds between programs; and

(3) Authorizes the Governor to use program savings and available funds for the purpose of temporarily maintaining critical federally funded state programs and positions.

Your Committee received written comments in support of this measure from the Department of Budget and Finance, Department of Corrections and Rehabilitation, Department of Transportation, and Department of Commerce and Consumer Affairs.

Your Committee received written comments on this measure from the Department of the Attorney General.

Your Committee finds that certain special provisions were missing from the General Appropriations Act of 2023, Act 164, Session Laws of Hawaii 2023, (Act 164) as amended by Act 230, Session Laws of Hawaii 2024. Your Committee recognizes that this measure addresses these omissions by inserting those special provisions into Act 164. Specifically, the special provisions:

(1) Authorize supplemental allotments and transfers of unrequired balances for capital improvement projects;

(2) Authorize a protocol fund as a separate account to be expended at the discretion of the executive head of each department; and

(3) Provide flexibility to departments to overcome budgetary shortfalls to efficiently execute their duties and provide services to the public.

Your Committee has amended this measure by:

(1) Authorizing transfers to the general fund of the excess balances of various non-general funds from various state departments and agencies, to take effect on June 29, 2025; and

(2) Appropriating unspecified moneys to the Office of the Governor for expenses and one full-time equivalent (1.0 FTE) staff position.

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 H.B. No. 1153, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1153, H.D. 1, S.D. 2.

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

________________________________

DONOVAN M. DELA CRUZ, Chair