SB 1345: MAKING EMERGENCY APPROPRIATIONS FOR PUBLIC EMPLOYMENT COST ITEMS.

A BILL FOR AN ACT

MAKING EMERGENCY APPROPRIATIONS FOR PUBLIC EMPLOYMENT COST ITEMS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

PART I

     SECTION 1.  This Act is recommended by the governor for immediate passage in accordance with section 9 of article VII of the Constitution of the State of Hawaii.

PART II

     SECTION 2.  There are appropriated or authorized from the sources of funding indicated below to collective bargaining statewide (BUF 102) the following sums or so much thereof as may be necessary to fund for fiscal biennium 2023‑2025 all collective bargaining cost items in the agreement negotiated with the exclusive representative of collective bargaining units (1), (2), (3), (4), (8), (9), (10), (13), and (14) and their excluded counterparts.  The amounts are for a negotiated settlement for the executive branch and the university of Hawaii, and an arbitration award for the department of education.  These amounts are in addition to the amounts provided in Act 49, Session Laws of Hawaii 2024:

                        FY 2024-2025

General funds                -0-

Special funds                -0-

Federal funds                -0-

Other federal funds           -0-

American Rescue Plan funds    -0-

Trust funds                  -0-

Interdepartmental transfers   -0-

Revolving funds              -0-

Other funds                  -0-

Special fund CIP             -0-

     Of the above amounts, the following amounts are for the department of education:

                        FY 2024-2025

General funds                -0-

Special funds                -0-

Federal funds                -0-

Trust funds                  -0-

Revolving funds              -0-

     SECTION 3.  Funds appropriated or authorized by this part shall be allotted by the director of finance to the appropriate state departments for expenditure in the respective fiscal year for the purposes of this part.

PART III

     SECTION 4.  There are appropriated or authorized from the sources of funding indicated below to judiciary administration (JUD 601) the following sums or so much thereof as may be necessary to fund for fiscal year 2024-2025 all collective bargaining cost items in the agreement negotiated with the exclusive representative of collective bargaining units (1), (2), (3), (4), (8), (9), (10), and (13):

                        FY 2024-2025

General funds                -0-

Special funds                -0-

     SECTION 5.  Funds appropriate or authorized by this part shall be expended by the chief justice in the respective fiscal year for the purposes of this part.

PART IV

     SECTION 6.  There are appropriated or authorized from the source of funding indicated below to Hawaii health systems corporation – corporate office (HTH 210) the following sums or so much thereof as may be necessary to fund for fiscal year 2024‑2025 the collective bargaining cost items in the agreement negotiated with the exclusive representative of collective bargaining units (1), (2), (3), (4), (8), (9), (10), and (13) and their excluded counterparts:

                        FY 2024-2025

General funds                -0-

Special funds                -0-

     SECTION 7.  Funds appropriated or authorized by this part shall be allotted by the director of finance to the Hawaii health systems corporation for expenditure in the respective fiscal year for the purposes of this part.

Part V

     SECTION 8.  Salary increases and cost adjustments provided in this Act for any officer or employee whose compensation is paid, in whole or in part, from federal, special, or other funds shall be paid wholly or proportionately, as the case may be, from the respective funds.

     SECTION 9.  Notwithstanding any provision of this Act, with the approval of the governor, the director of finance may transfer between parts II and IV of this Act the unrequired balances as may be available from the appropriated funds of parts II and IV of this Act as necessary.

     SECTION 10.  Funds appropriated or authorized by this Act that are not expended or encumbered by June 30, 2025, shall lapse as of that date.

     SECTION 11.  In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37‑91 and 37‑93, Hawaii Revised Statutes, the legislature has determined that the appropriations from previous years have caused the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $8,551,796 or one per cent.  In addition, the appropriation contained in this Act will cause the general fund expenditure ceiling for fiscal year 2024‑2025 to be further exceeded by $           or one per cent.  The reasons for exceeding the general fund expenditure ceiling are that:

     (1)  The appropriation made in this Act is necessary to serve the public interest; and

     (2)  The appropriation made in this Act meets the needs addressed by this Act.

     SECTION 12.  This Act shall take effect on July 1, 2050.

Report Title:

Public Employment Cost Items; BU-1, BU-2, BU-3, BU-4, BU-8, BU‑9, BU-10, BU-13, and BU-14; Emergency Appropriations; Expenditure Ceiling

Description:

Makes emergency appropriations for collective bargaining cost items for the members of Units (1), (2), (3), (4), (8), (9), (10), (13), and (14) and their excluded counterparts, including the cost of salary adjustments negotiated between the State and the bargaining unit representative for fiscal year 2024-2025.  Declares that the general fund expenditure ceiling for fiscal year 2024-2025 has been exceeded.  Effective 7/1/2050.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

MAKING EMERGENCY APPROPRIATIONS FOR PUBLIC EMPLOYMENT COST ITEMS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

PART I

     SECTION 1.  This Act is recommended by the governor for immediate passage in accordance with section 9 of article VII of the Constitution of the State of Hawaii.

PART II

     SECTION 2.  There are appropriated from the sources of funding indicated below to collective bargaining statewide (BUF 102) the following sums or so much thereof as may be necessary to fund for fiscal biennium 2023‑2025 all collective bargaining cost items in the agreement negotiated with the exclusive representative of collective bargaining units (2), (3), (4), (8), (9), (13), and (14) and their excluded counterparts.  The amounts are for a negotiated settlement for the executive branch and the university of Hawaii, and an arbitration award for the department of education.  These amounts are in addition to the amounts provided in Act 49, Session Laws of Hawaii 2024:

                        FY 2024-2025

General funds                -0-

Special funds                -0-

Federal funds                -0-

Other federal funds           -0-

American Rescue Plan funds    -0-

Trust funds                  -0-

Interdepartmental transfers   -0-

Revolving funds              -0-

Other funds                  -0-

Special fund CIP             -0-

     Of the above amounts, the following amounts are for the department of education:

                         FY 2024-2025

General funds                -0-

Special funds                -0-

Federal funds                -0-

Trust funds                  -0-

Revolving funds              -0-

     SECTION 3.  Funds appropriated by this part shall be allotted by the director of finance to the appropriate state departments for expenditure in the respective fiscal year for the purposes of this part.

PART III

     SECTION 4.  There are appropriated from the sources of funding indicated below to judiciary administration (JUD 601) the following sums or so much thereof as may be necessary to fund for fiscal year 2024-2025 all collective bargaining cost items in the agreement negotiated with the exclusive representative of collective bargaining units (2), (3), (4), (8), (9), and (13):

                        FY 2024-2025

General funds                 -0-

Special funds                 -0-

     SECTION 5.  Funds appropriated by this part shall be expended by the chief justice in the respective fiscal year for the purposes of this part.

PART IV

     SECTION 6.  There are appropriated from the source of funding indicated below to Hawaii health systems corporation – corporate office (HTH 210) the following sums or so much thereof as may be necessary to fund for fiscal year 2024‑2025 the collective bargaining cost items in the agreement negotiated with the exclusive representative of collective bargaining units (2), (3), (4), (8), (9), and (13) and their excluded counterparts:

                        FY 2024-2025

General funds                 -0-

Special funds                 -0-

     SECTION 7.  Funds appropriated by this part shall be allotted by the director of finance to the Hawaii health systems corporation for expenditure in the respective fiscal year for the purposes of this part.

Part V

     SECTION 8.  Salary increases and cost adjustments provided in this Act for any officer or employee whose compensation is paid, in whole or in part, from federal, special, or other funds shall be paid wholly or proportionately, as the case may be, from the respective funds.

     SECTION 9.  Notwithstanding any provision of this Act, with the approval of the governor, the director of finance may transfer between parts II and IV of this Act the unrequired balances as may be available from the appropriated funds of parts II and IV of this Act as necessary.

     SECTION 10.  Funds appropriated or authorized by this Act that are not expended or encumbered by June 30, 2025, shall lapse as of that date.

     SECTION 11.  In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37‑91 and 37‑93, Hawaii Revised Statutes, the legislature has determined that the appropriations from previous years have caused the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $      or      per cent.  In addition, the appropriation contained in this Act will cause the general fund expenditure ceiling for fiscal year 2024‑2025 to be further exceeded by $       or      per cent.  The reasons for exceeding the general fund expenditure ceiling are that:

     (1)  The appropriation made in this Act is necessary to serve the public interest; and

     (2)  The appropriation made in this Act meets the needs addressed by this Act.

     SECTION 12.  This Act shall take effect upon its approval.

Report Title:

Public Employment Cost Items; BU-2, BU-3, BU-4, BU-8, BU-9, BU-13, and BU-14; Emergency Appropriations; Expenditure Ceiling

Description:

Makes emergency appropriations for collective bargaining cost items for the members of Units (2), (3), (4), (8), (9), (13), and (14) and their excluded counterparts, including the cost of salary adjustments negotiated between the State and the bargaining unit representative for fiscal year 2024-2025.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO. 111

Honolulu, Hawaii

RE:    S.B. No. 1345

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Labor and Technology, to which was referred S.B. No. 1345 entitled:

"A BILL FOR AN ACT MAKING EMERGENCY APPROPRIATIONS FOR PUBLIC EMPLOYMENT COST ITEMS,"

begs leave to report as follows:

     The purpose and intent of this measure is to make emergency appropriations for collective bargaining cost items for the members of bargaining units (2), (3), (4), (8), (9), (13), and (14) and their excluded counterparts, including the cost of salary adjustments negotiated between the State and the bargaining unit representative for fiscal year 2024-2025.

     Your Committee received testimony in support of this measure from the Department of Budget and Finance; University of Hawaiʻi System; United Public Workers, AFSCME Local 646 AFL-CIO; Hawaii Government Employees Association, AFSCME Local 152 AFL-CIO; and Hawaii Health Systems Corporation.

     Your Committee finds that Act 49, Session Laws of Hawaii, (Act 49), which made emergency appropriations for collective bargaining cost items, public employment cost items, and cost adjustments for agencies excluded from collective bargaining was based on estimated amounts.  Based on the first payments made in October and November of 2024, the estimates within Act 49 are insufficient to cover necessary funding costs.  Your Committee further finds that multiple arbitration awards and settlement agreements, including an agreement reached with the Hawaiʻi Firefighters Association, have exacerbated the need for additional funding.  Accordingly, this measure will ensure the effective operation of the State by providing appropriations for negotiated cost items due to arbitration awards and temporary hazard pay settlements.  This measure serves as a legislative vehicle that may be used to make emergency appropriations upon the Legislature's receipt of the final appropriation amounts.

Your Committee has amended this measure by:

     (1)  Inserting language to include collective bargaining units (1) and (10) for each emergency appropriation;

     (2)  Specifying the amount and percentage by which the general fund expenditure ceiling for fiscal year 2024‑2025 has been exceeded;

     (3)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

     (4)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Labor and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1345, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1345, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Labor and Technology,