Report Title:

Emergency appropriation; electricity

Description:

Makes an emergency appropriation for fiscal year 2006-2007 to cover statewide budgetary shortfalls in electricity payments for facilities assigned to DAGS.  (HB1226 HD1)

HOUSE OF REPRESENTATIVES	H.B. NO.	1226
TWENTY-FOURTH LEGISLATURE, 2007		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

MAKING AN EMERGENCY APPROPRIATION FOR ELECTRICITY PAYMENTS STATEWIDE.

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.  The purpose of this Act is to make an emergency appropriation to address a projected $626,000 deficit in electricity payments for the department of accounting and general services-managed facilities statewide.  Since local utility companies are dependent upon oil as the primary source of fuel, high world oil prices have directly contributed to this shortfall.  Although kilowatt per hour consumption has remained flat or decreased, increased worldwide demand and geopolitical concerns all contribute to keep oil prices high.  Based on a combination of actual bills paid and projected cost, the shortfall for fiscal year 2006-2007 is anticipated to be $626,000 statewide.  Without an emergency appropriation, the program must defer payment on its June 2007 bill.

     SECTION 3.  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 general fund expenditure ceiling for fiscal year 2006-2007 has already been exceeded by $90,137,694 or 1.68 per cent.  The appropriations contained in this Act will cause the state general fund expenditure ceiling for fiscal year 2006-2007 to be exceeded by an additional $626,000, or an additional 0.012 per cent.  The calculation contained in the foregoing sentence relates only to the amount of general funds appropriated in this Act for fiscal year 2006-2007.  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 provided for by this Act.

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $626,000 or so much thereof as may be necessary for fiscal year 2006-2007 for the purpose of paying electricity bills. 

     The sum appropriated shall be expended by the department of accounting and general services.

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