The bill also stipulates a funding mechanism for the revolving fund, which will include repayments from previously issued loans, legislative appropriations, and potential contributions from other funding sources, including federal or private support. Notably, the bill mentions that the general fund expenditure ceiling will be exceeded, reflecting the urgency and necessity of the appropriations made through this legislation. This raises concerns regarding fiscal sustainability and budgetary impacts on the state’s finances.
Summary
SB2984, introduced in the 32nd Legislature of Hawaii, focuses on establishing the Hawaii Capital Loan Revolving Fund. This fund aims to provide financial assistance to businesses located in areas that were declared as disaster zones due to the 2023 Maui wildfires. Through this fund, eligible businesses would be able to obtain loans designed to help them recover from the impact of this natural disaster. The intention behind this bill is to ensure that local businesses can stabilize and rebuild, fostering economic recovery in the affected regions.
Contention
There are likely to be divergent views regarding the funding and management of the Hawaii Capital Loan Revolving Fund. Proponents may argue that providing targeted financial assistance to small businesses is crucial for recovery and rebuilding efforts following natural disasters. Critics could raise concerns about overextending state resources or the efficacy of loan programs in achieving long-term stability for these businesses. The discussions surrounding this bill might also highlight the challenges of balancing immediate disaster relief with comprehensive economic strategy.
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.