REPORT TITLE:
UH; Payroll Lag


DESCRIPTION:
To enable the University of Hawaii to meet its general fund
fiscal obligations under HRS chapter 304 in fiscal year 1998-
1999, by addressing the budgetary shortfall resulting from the
transfer of fiscal year 1997-1998 encumbrances to fiscal year
1998-1999 which was necessitated by the University of Hawaii
having to pay its faculty members on June 30, 1998 instead of
July 1, 1998.

 
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THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

MAKING EMERGENCY APPROPRIATIONS FOR THE UNIVERSITY OF HAWAII.



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

 1      SECTION 1.  This Act is recommended by the governor for
 
 2 immediate passage in accordance with section 9 of article VII of
 
 3 the constitution of the State of Hawaii.
 
 4      SECTION 2.  Act 355, Session Laws of Hawaii 1997, authorized
 
 5 the governor to convert the State of Hawaii payroll payment basis
 
 6 from predicted payroll to after-the-fact payroll commencing with
 
 7 the June 30, 1998 pay day in fiscal year 1997-1998 which would be
 
 8 delayed to July 1, 1998 in fiscal year 1998-1999.  In
 
 9 anticipation of implementing an after-the-fact payroll, also
 
10 known as the "payroll lag," funds appropriated by the Legislature
 
11 for the University of Hawaii were restricted by the governor.
 
12 Subsequently, the United States District Court granted a motion
 
13 by the University of Hawaii Professional Assembly for a
 
14 preliminary injunction enjoining the governor and comptroller of
 
15 the State of Hawaii from implementing Act 355, Session Laws of
 
16 Hawaii 1997, with respect to University of Hawaii faculty
 
17 members.  The additional funding requirement to cover the faculty
 
18 payroll was approximately $6.2 million.  Due to the late
 
19 notification of this action, essentially after the completion of
 

 
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 1 fiscal year 1997-1998 purchasing activities, the University was
 
 2 required to transfer fiscal year 1997-1998 general fund
 
 3 encumbrances to fiscal year 1998-1999 in order to comply with
 
 4 chapter 37, Hawaii Revised Statutes, by avoiding a budgetary
 
 5 deficit of approximately $6.0 million.  Appropriated funds
 
 6 previously restricted for the payroll lag were not released, with
 
 7 the assurance that legislation would be introduced to address any
 
 8 related shortfall.
 
 9      A critical funding emergency exists.  Past budgetary
 
10 reductions have led to declines in the quality of University
 
11 programs and in access to these programs.  The University lacks
 
12 adequate resources in fiscal year 1998-1999 to meet its fiscal
 
13 obligations in carrying out its educational mission of teaching,
 
14 research, and public service.
 
15      The purpose of this Act is to appropriate moneys to allow
 
16 the University of Hawaii to meet its fiscal obligations under
 
17 chapter 304, Hawaii Revised Statutes.
 
18      SECTION 3.  There is appropriated out of the general
 
19 revenues of the State of Hawaii the following sums or so much
 
20 thereof as may be necessary for fiscal year 1998-1999 to be used
 
21 for the budgetary shortfall resulting from the transfer of fiscal
 
22 year 1997-1998 encumbrances to fiscal year 1998-1999 which was
 
23 necessitated by the University of Hawaii having to pay its
 

 
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 1 faculty members on June 30, 1998 instead of on July 1, 1998:
 
 2      UOH 100, University of Hawaii, Manoa              $4,142,393
 
 3      UOH 210, University of Hawaii, Hilo                 $320,024
 
 4      UOH 700, University of Hawaii, West Oahu             $55,687
 
 5      UOH 800, University of Hawaii,
 
 6           Community Colleges                           $1,624,703
 
 7      UOH 900, University of Hawaii,
 
 8           Systemwide Support                              $20,694
 
 9      SECTION 4.  The sums appropriated shall be expended by the
 
10 University of Hawaii for the purposes of this Act.
 
11      SECTION 5.  This Act shall take effect upon its approval. 
 
12 
 
13                           INTRODUCED BY:  _______________________
 

 
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