| 47 | | - | SECTION 1. The coronavirus disease 2019 (COVID-19) pandemic has wreaked havoc on Hawaii's economy and residents for the past two years. The COVID-19 pandemic has demonstrated how vulnerable the State's economic and fiscal health can be to external shocks beyond the State's control. Fortunately, the federal government was able to provide significant, direct financial assistance to the State and Hawaii residents and businesses to help mitigate the economic effects of the COVID-19 pandemic. The State's tourism industry and economy have been recovering much more quickly than anticipated, due in part to the safe travels Hawaii program, and the State is now back on strong fiscal footing. However, the COVID-19 pandemic is still unfolding and there are signs of impending issues, including seemingly more severe climate change, increasing tensions with China and Russia, and growing polarization of political viewpoints in the United States. The State must be prepared to weather these turbulent conditions on its own because the federal government may not be able to provide generous financial assistance in the future. The purpose of this Act is to significantly build up the State's fiscal reserves by depositing $ into the emergency and budget reserve fund for fiscal year 2021-2022. This deposit will bring the emergency and budget reserve fund balance to approximately 14.7 per cent of prior year general fund revenues, thus providing a strong reserve for the future. SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2021-2022 to be deposited into the emergency and budget reserve fund established pursuant to section 328L-3, Hawaii Revised Statutes. SECTION 3. This Act shall take effect on July 1, 2050. |
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| 47 | + | SECTION 1. The COVID-19 pandemic has wreaked havoc on Hawaii's economy and residents for the past two years. It has demonstrated how vulnerable the State's economic and fiscal health can be to external shocks beyond the State's control. Fortunately, the federal government was able to provide significant, direct financial assistance to the State and to Hawaii residents and businesses to help through the worst of the difficulties. Tourism and Hawaii's economy have been recovering much more quickly than anticipated, in part due to the Safe Travels Hawaii program, and the State is now back on a strong fiscal footing. However, the COVID-19 pandemic is still unfolding and there are troubling signs brewing in terms of seemingly more severe climate change, increasing tensions with China and Russia, and growing polarization of political viewpoints in the United States. Given these turbulent conditions, the State must be prepared to weather the worst on its own because the federal government may not be able to assist as generously in the future. The purpose of this Act is to significantly build up the State's fiscal reserves by depositing $1,000,000,000 into the emergency and budget reserve fund for fiscal year 2021-2022. This deposit will bring the emergency and budget reserve fund balance to approximately 14.7 per cent of prior year general fund revenues, which will provide a strong reserve for the future. SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $1,000,000,000 or so much thereof as may be necessary for fiscal year 2021-2022 for the department of budget and finance for the purpose of further capitalizing the emergency and budget reserve fund. The sum appropriated shall be deposited into the emergency and budget reserve fund established pursuant to section 328L-3, Hawaii Revised Statutes, by the department of budget and finance for the purposes of the Act. SECTION 3. This Act shall take effect upon its approval. INTRODUCED BY: _____________________________ BY REQUEST |
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