Bill > HB795

This bill addresses the constitutional requirement in Hawaii's Article VII, Section 6 for handling excess general fund revenues by depositing $1,000,000 into the emergency and budget reserve fund for fiscal year 2025-2026. The legislation recognizes that when certain fiscal conditions are met, the state legislature must dispose of excess tax revenues through three potential methods: providing tax refunds or credits to taxpayers, making deposits into funds that can supplement state funding during emergencies or economic downturns, or pre-paying state debt service or employee pension and post-employment benefit liabilities. In this specific case, the legislature has determined that the necessary fiscal factors have been satisfied for two consecutive years, triggering the constitutional provision to transfer funds to the emergency and budget reserve fund. The emergency and budget reserve fund serves as a financial safety net, providing supplemental resources that can be used during times of economic uncertainty or unexpected revenue reductions. The bill will take effect on July 1, 2025, ensuring that the funds are allocated in the specified fiscal year.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=795&year=2025