HI
Hawaii Senate Bill SB3008

Hawaii 2024 Regular Session

Hawaii Senate Bill SB3008

Introduced
1/24/24  
Refer
1/26/24  
Introduced
1/24/24  
Report Pass
2/13/24  
Refer
1/26/24  
Report Pass
2/13/24  
Report Pass
2/29/24  
Refer
2/13/24  
Engrossed
3/5/24  
Report Pass
2/29/24  
Enrolled
3/7/24  
Engrossed
3/5/24  
Enrolled
3/7/24  
Report Pass
3/20/24  
Refer
3/7/24  
Report Pass
3/20/24  

Caption

Proposing Amendments To Article Vii, Sections 12 And 13, Of The Hawaii Constitution To Expressly Provide That The Legislature May Authorize The Counties To Issue Tax Increment Bonds And To Exclude Tax Increment Bonds From Determinations Of The Funded Debt Of The Counties.

Impact

If enacted, SB3008 would modify how counties can leverage their funding options. By allowing the issuance of tax increment bonds, counties would gain a new mechanism to finance public infrastructure projects, relying on the future increases in tax revenue generated by rising property values within designated districts. Additionally, the exclusion of these bonds from the funded debt calculations could help counties manage their overall debt levels more strategically, potentially leading to better credit ratings and easier access to capital.

Summary

Senate Bill 3008 proposes amendments to Article VII of the Hawaii Constitution, specifically Sections 12 and 13. Its purpose is twofold: first, to authorize the legislature to permit counties to issue tax increment bonds for funding public works and improvements, and second, to exclude these bonds from the calculation of the counties' funded debt. The bill aims to provide local governments with more flexibility in financing public projects, potentially fostering local development initiatives through the utilization of tax incentives based on increased property values.

Sentiment

The sentiment surrounding SB3008 appears to be cautiously optimistic. Proponents view it as a positive step towards empowering local governments to stimulate economic growth and improve public infrastructure. They argue that enabling tax increment financing can result in significant community enhancements. However, some contend that the lack of accountability regarding how these funds are used could lead to mismanagement or misallocation of resources, stirring concerns among fiscal conservatives who prioritize budget constraints.

Contention

A point of contention in the discussions regarding SB3008 revolves around the implications of increased local government borrowing capacity. Critics argue that while tax increment bonds might generate funds for necessary projects, they may also lead counties to take on excessive debt commitments without sufficient oversight. The exclusion of these bonds from debt calculations might allow for greater expenditure at a time when some counties are already grappling with fiscal challenges. The balance between promoting growth and maintaining financial accountability remains a crucial topic in the ongoing debate.

Latest SB3008 Activity

Companion Bills

No companion bills found.

Similar Bills

HI SB1295

Proposing Amendments To Article Vii, Sections 12 And 13, Of The Hawaii Constitution To Expressly Provide That The Legislature May Authorize The Counties To Issue Tax Increment Bonds And To Exclude Tax Increment Bonds From Determinations Of The Funded Debt Of The Counties.

HI SB1295

Proposing Amendments To Article Vii, Sections 12 And 13, Of The Hawaii Constitution To Expressly Provide That The Legislature May Authorize The Counties To Issue Tax Increment Bonds And To Exclude Tax Increment Bonds From Determinations Of The Funded Debt Of The Counties.

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HI HB997

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Proposing Amendments To Article Vii, Sections 12 And 13, Of The Hawaii Constitution To Expressly Provide That The Legislature May Authorize The Counties To Issue Tax Increment Bonds And To Exclude Tax Increment Bonds From Determinations Of The Funded Debt Of The Counties.