STAND. COM. REP. NO. 3664

Honolulu, Hawaii

RE: H.B. No. 2275

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2275, 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 adjust funding for various programs in a budget-neutral manner.

More specifically, this measure addresses the omission of a transfer proviso by providing third quarter funding for existing programs and adjusting funding for various programs to match their anticipated levels of activity.

Your Committee received testimony in support of this measure from the Department of Budget and Finance, Department of Corrections and Rehabilitations, Department of Human Services, and Hawaii Primary Care Association.

Your Committee finds that unanticipated operating expenses were incurred by state programs in response to the federal government shutdown and other unforeseen circumstances. Your Committee further finds that state departments and agencies have a limited ability to transfer funds between programs to address changing conditions. This measure will allow necessary funding adjustments and permit the affected programs to continue to serve the public as intended.

Your Committee has amended this measure by:

(1) Including appropriations of unspecified amounts to the Agribusiness Development Corporation, Hawaii Technology Development Corporation, School Facilities Authority, and Hawaii Community Development Authority for operations in fiscal year 2026-2027;

(2) Inserting an appropriation of an unspecified amount out of the Mass Transit Special Fund to be expended for the purposes of the special fund in fiscal year 2026-2027; and

(3) Lapsing moneys from the State Risk Management Fund into the general fund at the end of fiscal year 2025-2026.

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. 2275, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2275, 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