THE SENATE

S.B. NO.

712

TWENTY-NINTH LEGISLATURE, 2017

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO THE VARIANCE REPORT.

 

 

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

 


SECTION 1. The legislature finds that the variance report submitted annually by the governor to the legislature generally includes only a summary of budgeted appropriations and actual expenditures. The legislature also finds that more information should be included in the variance report so that the legislature can effectively monitor the actual budgetary performance of the departments. The legislature intends to use the information to better align its budget decisions with the actual needs and expenditures of the departments. The legislature is especially interested in reviewing personal services cost appropriations against personal services cost expenditures and departmental position ceilings against actual or filled positions.

The purpose of this Act is to require the following information to be included in the variance report:

(1) Means of financing information and cost element breakdowns in the comparison of:

(A) Budgeted appropriations and actual expenditures; and

(B) Position ceiling and filled positions; and

(2) A summary by department of:

(A) Cost element breakdowns of expenditures; and

(B) The position ceiling in comparison to total positions filled.

SECTION 2. Section 37-75, Hawaii Revised Statutes, is amended to read as follows:

"37-75 Variance report. Not fewer than thirty days prior to the convening of each regular session of the legislature, the governor shall submit to the legislature and to each member thereof a report on program performance for the last completed fiscal year and the fiscal year in progress. In format, the report generally shall follow the fiscal requirements portion of the executive budget or budgets. The report shall include:

(1) At the lowest level of the program structure, for each program contained in the budget finally approved by the legislature for the last completed fiscal year and the fiscal year in progress:

(A) A comparison, by the operating and research and development cost categories, of the budgeted expenditures and the actual expenditures for the last completed fiscal year and the budgeted expenditures and the estimated expenditures for the fiscal year in progress[;]. The comparison of cost categories shall include breakdowns by cost elements and means of financing for the cost elements;

(B) A comparison, for the operating and research and development cost categories, of the budgeted expenditures and position ceiling and the actual expenditures and number of permanent and temporary positions filled in the last completed fiscal year and a comparison of the budgeted expenditures and the position ceiling for the fiscal year in progress and the actual expenditures and number of permanent and temporary positions filled in the first three months of the fiscal year in progress and the estimated expenditures and number of permanent and temporary positions expected to be filled in the remaining months of the fiscal year in progress[;]. The comparison of cost categories shall include breakdowns by cost elements and means of financing of the cost elements;

(C) The program size indicators and a comparison of the program size anticipated and the size actually realized in the last completed fiscal year and the program size anticipated and the size estimated for the fiscal year in progress;

(D) The effectiveness measures and a comparison of the level of effectiveness anticipated and the level actually attained in the last completed fiscal year and the level of effectiveness anticipated and the level estimated for the fiscal year in progress; and

(E) A narrative explanation of the significant differences for the last completed fiscal year in each of the comparisons made in subparagraphs (A), (B), (C), and (D), including an explanation of the basis upon which the original estimates were made and the reasons why the estimates proved accurate or inaccurate, and a statement of what the actual experience portends for the future of the program in terms of costs, size, and effectiveness;

provided that expenditure amounts in the comparisons shall be shown to the nearest thousand dollars;

(2) Appropriate summaries at each level of the state program structure for each major grouping of programs encompassed therein, showing:

(A) A comparison of the [total] following:

(i) The total budgeted expenditure and the total actual expenditure for the last completed fiscal year and the total budgeted expenditure and the total estimated expenditure for the fiscal year in progress; provided that the expenditure amounts shall be shown to the nearest thousand dollars; and

(ii) The position ceiling and actual number of permanent and temporary positions filled in the last completed fiscal year and the position ceiling and estimated number of permanent and temporary positions to be filled in the fiscal year in progress;

(B) The effectiveness measures and a comparison of the level of effectiveness anticipated and the level actually attained in the last completed fiscal year and the level of effectiveness anticipated and the level estimated for the fiscal year in progress; and

(C) A narrative explanation summarizing the major reasons for the differences in the comparisons made for the last completed fiscal year in subparagraphs (A) and (B); [and]

(3) A narrative explanation of the significant variations in capital improvement costs; provided that capital improvement project variances shall be referenced to the six-year program and financial plan, which shall contain the information specified in section 37‑69(d)(1)(K)[.]; and

(4) A summary showing a comparison, by the operating and research and development cost categories, of the following for each department:

(A) The total budgeted expenditure and total actual expenditure for the last completed fiscal year and the total budgeted expenditure and total estimated expenditure for the fiscal year in progress; provided that the expenditure amounts shall be shown to the nearest thousand dollars. The comparison of cost categories shall include breakdowns by cost elements and means of financing for the cost elements; and

(B) The position ceiling and actual number of permanent and temporary positions filled in the last completed fiscal year and the position ceiling and estimated number of permanent and temporary positions to be filled in the fiscal year in progress."

SECTION 3. This Act shall apply to the variance report submitted to the legislature before the regular session of 2019 and each subsequent regular session.

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2030.


 


 

Report Title:

B&F; Variance Report; Expenditures; Position Counts

 

Description:

Requires the Governor's variance report to include: (1) means of financing data; and (2) summaries by department of cost element breakdowns of expenditures and comparisons of the position ceiling to number of positions filled. (SB712 HD1)

 

 

 

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