Bill > HB2519

This bill aims to modernize the University of Hawaii's (UH) financial management by transitioning to a system of block appropriations, which means the university will receive larger, less restricted funding amounts rather than detailed line-item budgets. This change, set to begin in the 2027-2029 fiscal biennium, will grant UH greater autonomy to allocate funds internally across its campuses and programs, with specific limitations on salary increases for top leadership, initiating new programs exceeding $2 million annually, or changing tuition without legislative consistency. The bill also establishes a University of Hawaii Budget Stabilization Fund to cushion against financial shocks like enrollment drops or funding cuts, and introduces performance-based funding, where up to five percent of the general fund appropriation will be tied to achieving specific goals in areas such as student success, workforce development, and research, starting in the 2028-2029 fiscal year. To ensure accountability, UH will be required to submit annual reports to the Legislature detailing its internal fund allocations, budget variances, financial projections, and performance metrics, and will also be granted exemptions from certain procurement rules for smaller purchases, provided it maintains internal competitive and transparent processes. The bill also allows the university to carry forward up to ten percent of unexpended general funds each year, and importantly, it clarifies that these changes do not limit the State Auditor's authority to conduct audits.

Budget and Finance, Education

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=2519&year=2026