STAND. COM. REP. NO. 1775

Honolulu, Hawaii

RE: H.B. No. 1022

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1022, H.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 address a critical funding emergency caused by the repeal of section 72 of Act 88, Session Laws of Hawaii 2021 (Act 88), which limited the ability of departments to transfer funds between their programs in response to changing conditions.

More specifically, the measure addresses the repeal of section 72 of Act 88 by:

(1) Appropriating additional general funds as emergency appropriations for fiscal year 2022-2023 for operating fund shortfalls in quarters 3 and 4 in existing programs under the Department of Public Safety, Department of Transportation, and Department of Human Services; and

(2) Adjusting funding for various programs in these departments to be commensurate with their anticipated levels of activity.

Your Committee received testimony in support of this measure from the Department of Budget and Finance and Department of Public Safety.

Your Committee finds that this measure's emergency appropriations and funding adjustments are budget neutral and are necessary to continue critical government programs and operations.

Your Committee has amended this measure by changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

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. 1022, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1022, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.

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

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DONOVAN M. DELA CRUZ, Chair