Making An Appropriation To The Emergency And Budget Reserve Fund.
Impact
The appropriation as proposed in HB 2106 would increase the balance of the Emergency and Budget Reserve Fund to approximately 14.7% of the prior year's general fund revenues. This substantial funding is designed to enhance the state's ability to respond to fiscal challenges and maintain stability in the face of economic uncertainties. It reflects a proactive approach to fiscal management by the state, aiming to secure financial resources for crises that could occur in the foreseeable future.
Summary
House Bill 2106 aims to make a significant appropriation of $1,000,000,000 to the Emergency and Budget Reserve Fund in the State of Hawaii for the fiscal year 2021-2022. The bill arises out of the economic turmoil caused by the COVID-19 pandemic, which has highlighted the vulnerabilities in the state's fiscal health and the essential need to bolster its reserves. The bill's intent is to prepare the state for future emergencies by ensuring a strong fiscal foundation, especially in response to potential external shocks, which could include further challenges associated with public health crises, natural disasters, and global conflicts.
Contention
While the bill is set to strengthen the state's fiscal position, there may be differing opinions on how best to utilize budget reserves and what balance should be maintained between reserve funding and direct public services. Opponents of substantial reserve accumulation may argue that funds should instead be allocated to immediate needs arising from the pandemic, such as healthcare and economic assistance programs. Nevertheless, supporters maintain that ensuring a strong financial backing through increased reserves is crucial for long-term stability and resilience.
Proposing Amendments To Articles Viii And X Of The Constitution Of The State Of Hawaii To Authorize The Legislature To Establish A Surcharge On Residential Investment Property To Increase Funding For Public Education.
Proposing Amendments To Articles Viii And X Of The Constitution Of The State Of Hawaii To Authorize The Legislature To Establish A Surcharge On Residential Investment Property To Increase Funding For Public Education.
To provide appropriations from the General Fund for the expenses of the Executive, Legislative and Judicial Departments of the Commonwealth, the public debt and the public schools for the fiscal year July 1, 2023, to June 30, 2024, and for the payment of bills incurred and remaining unpaid at the close of the fiscal year ending June 30, 2023; to provide appropriations from special funds and accounts to the Executive and Judicial Departments for the fiscal year July 1, 2023, to June 30, 2024, and for the payment of bills remaining unpaid at the close of the fiscal year ending June 30, 2023; to provide for the appropriation of Federal funds to the Executive and Judicial Departments for the fiscal year July 1, 2023, to June 30, 2024, and for the payment of bills remaining unpaid at the close of the fiscal year ending June 30, 2023; and to provide for the additional appropriation of Federal and State funds to the Executive and Legislative Departments for the fiscal year July 1, 2022, to June 30, 2023, and for the payment of bills incurred and remaining unpaid at the close of the fiscal year ending June 30, 2022.