STAND. COM. REP. NO. 557

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 105

       S.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 105 entitled:

 

"A BILL FOR AN ACT RELATING TO THE BUDGET,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to require budget documents submitted to the Legislature, including those submitted by the Judiciary, to include the estimated future debt service of proposed capital improvement projects.

 

     Your Committee received comments on this measure from the Department of Budget and Finance and the University of Hawaii.

 

     Your Committee finds that the Legislature's task of balancing the budget is complicated.  Including anticipated costs in a budget should be a standard budgetary procedure.  The use of forward-looking financial plans are valuable for identifying known or potential cost items and is a matter of best practices in budgeting.  Your Committee finds that the additional information on debt service costs to be submitted to the Legislature in each six-year program and financial plan and budget will result in a comprehensive budget that more accurately reflects costs to the State over the following six-year period.

 

     Your Committee has amended this measure by simplifying it to require a summary of debt service for the following:

 

(1)  Capital improvement projects for which the appropriations are proposed in the six-year financial plan period; and

 

(2)  Capital improvement projects for which the appropriations were approved before the six-year financial plan period.

 

     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 S.B. No. 105, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 105, 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,

 

 

 

____________________________

JILL N. TOKUDA, Chair