SB 1362: RELATING TO FUNDING ADJUSTMENTS FOR STATE PROGRAMS.

A BILL FOR AN ACT

RELATING TO FUNDING ADJUSTMENTS FOR STATE PROGRAMS.

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

     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.

     SECTION 2.  In prior years, the respective budget acts contained a budget proviso such as section 72 of Act 88, Session Laws of Hawaii 2021, the General Appropriations Act of 2021 (Act 88), which permitted departments to transfer funds between their programs provided that the legislature was informed of the transfers.  However, section 8 of Act 248, Session Laws of Hawaii 2022, the Supplemental Appropriations Act of 2022, repealed section 72 of Act 88, and Act 164, Session Laws of Hawaii 2023, the General Appropriations Act of 2023, as amended by Act 230, Session Laws of Hawaii 2024, the Supplemental Appropriations Act of 2024, does not reinstate the proviso.  Consequently, although funds were appropriated to various state departments for their operating programs for fiscal year 2024-2025, the proviso's elimination has resulted in a critical funding emergency by limiting the ability of departments to transfer funds between their programs to address changing conditions.

     The purposes of this Act are to address the omission of the transfer proviso by appropriating additional general funds as emergency appropriations for fiscal year 2024-2025 for operating shortfalls in quarter 3 funding for existing programs and to adjust funding for various programs to be commensurate with their anticipated levels of activity.  The emergency appropriations and the funding adjustments made in this Act are budget neutral.

     SECTION 3.  Act 164, Session Laws of Hawaii 2023, as amended by Act 230, Session Laws of Hawaii 2024, is amended by amending section 3 as follows:

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

Report Title:

Funds; Emergency Appropriations

Description:

Makes emergency appropriations and commensurate reductions to pay for anticipated operating shortfalls due to the limited ability to transfer funds between programs.

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