STAND. COM. REP. NO. 3643

Honolulu, Hawaii

RE: H.B. No. 2377

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2377, 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 make an emergency appropriation to transfer funds within a department to meet operating budget shortfalls and other program requirements for the fourth quarter of fiscal year 2024.

Your Committee received testimony in support of this measure from the Department of Budget and Finance, Department of Corrections and Rehabilitation, and Department of Transportation.

Your Committee finds that Act 164, Session Laws of Hawaii 2023, did not contain a provision that was included in previous budget Acts and authorized the Governor to transfer funds between programs within a department to address budget shortfalls and other program requirements. The omission of such a proviso has caused a critical funding emergency by limiting the ability of departments to transfer funds between their programs to address changing conditions. The transfer of funds in this measure will remedy this situation.

Your Committee has amended this measure by:

(1) Transferring $24,000,000 out of PSD 402, 405, 406, 409, 410, 420, 421, and 808;

(2) Transferring $3,500,000 into PSD407;

(3) Transferring $20,500,000 into PSD900; and

(4) Inserting the appropriate Ramseyer provision to properly reflect the amendments above.

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. 2377, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2377, 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,

________________________________

DONOVAN M. DELA CRUZ, Chair