SB 1350: RELATING TO PUBLIC EMPLOYMENT COST ITEMS.

A BILL FOR AN ACT

RELATING TO PUBLIC EMPLOYMENT COST ITEMS.

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

PART I

     SECTION 1.  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 2025-2027 all collective bargaining cost items in the agreement negotiated with the exclusive representative of collective bargaining unit (5):

                        FY 2025-2026        FY 2026-2027

General funds                -0-                -0-

Special funds                -0-                -0-

Federal funds                -0-                -0-

Other funds                  -0-                -0-

     SECTION 2.  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 II

     SECTION 3.  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 2025-2027 the salary increases and other cost adjustments authorized by chapter 89C, Hawaii Revised Statutes, for state officers and employees who are excluded from collective bargaining and belong to the same compensation plans as those officers and employees within bargaining unit (5):

                        FY 2025-2026        FY 2026-2027

General funds                -0-                -0-

Special funds                -0-                -0-

Federal funds                -0-                -0-

Other funds                  -0-                -0-

     SECTION 4.  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 5.  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 6.  Funds appropriated or authorized by this Act that are not expended or encumbered by June 30, 2026, and June 30, 2027, of the respective fiscal years, shall lapse as of those dates.

     SECTION 7.  In accordance with section 9 of article VII of the Constitution of the State of Hawaii and sections 37-91 and 37-93, Hawaii Revised Statutes, the legislature has determined that the state general fund expenditure ceiling for fiscal year 2025-2026 has already been exceeded by $8,551,796 or one per cent.  In addition, the appropriations contained in this Act will cause the state general fund expenditure ceiling for fiscal year 2025-2026 to be further exceeded by $          , or one per cent.  The reasons for exceeding the general fund expenditure ceiling are that the appropriations made in this Act are necessary to serve the public interest and to meet the needs addressed by this Act.

     SECTION 8.  This Act shall take effect on July 1, 2050.

Report Title:

Public Employment Cost Items; BU-5; Appropriations; Expenditure Ceiling

Description:

Appropriates funds for collective bargaining cost items for the members of bargaining unit (5) and their excluded counterparts, including the cost of salary adjustments negotiated between the State and the bargaining unit representative for fiscal biennium 2025-2027.  Declares the expenditure ceiling for fiscal year 2025-2026 is 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

RELATING TO PUBLIC EMPLOYMENT COST ITEMS.

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

PART I

     SECTION 1.  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 2025-2027 all collective bargaining cost items in the agreement negotiated with the exclusive representative of collective bargaining unit (5):

                        FY 2025-2026        FY 2026-2027

General funds                -0-                -0-

Special funds                -0-                -0-

Federal funds                -0-                -0-

Other funds                  -0-                -0-

     SECTION 2.  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 II

     SECTION 3.  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 2025-2027 the salary increases and other cost adjustments authorized by chapter 89C, Hawaii Revised Statutes, for state officers and employees who are excluded from collective bargaining and belong to the same compensation plans as those officers and employees within bargaining unit (5):

                        FY 2025-2026        FY 2026-2027

General funds                -0-                -0-

Special funds                -0-                -0-

Federal funds                -0-                -0-

Other funds                  -0-                -0-

     SECTION 4.  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 5.  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 6.  Funds appropriated or authorized by this Act that are not expended or encumbered by June 30, 2026, and June 30, 2027, of the respective fiscal years, shall lapse as of those dates.

     SECTION 7.  This Act shall take effect on July 1, 2025.

Report Title:

Public Employment Cost Items; BU-5

Description:

Provides appropriations for collective bargaining cost items for the members of Unit (5) and their excluded counterparts, including the cost of salary adjustments negotiated between the State and the bargaining unit representative for fiscal biennium 2025-2027.

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. 375

Honolulu, Hawaii

RE:    S.B. No. 1350

       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. 1350 entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC EMPLOYMENT COST ITEMS,"

begs leave to report as follows:

     The purpose and intent of this measure is to appropriate or authorize funds for fiscal biennium 2025-2027 for collective bargaining unit cost items including salary and other cost adjustments for the members of collective bargaining unit (5) and their excluded counterparts.

     Your Committee received testimony in support of this measure from the Department of Budget and Finance and Hawaiʻi State Teachers Association.

     Your Committee finds that the negotiations for collective bargaining agreements for bargaining unit (5) are currently in progress.  This measure provides a legislative vehicle that can be used if an agreement is reached or an arbitration award is issued prior to the end of the 2025 Regular Session.

     Your Committee has amended this measure by:

     (1)  Inserting language declaring that the general fund expenditure ceiling has been exceeded;

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

     (3)  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. 1350, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1350, 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,