Thursday, March 28, 2024
Hawai'i Free Press

Current Articles | Archives

Thursday, February 4, 2010
Senate Committee considering Fiscal Stabilization Fund
By News Release @ 11:02 PM :: 5009 Views :: Energy, Environment

LINGLE-AIONA ADMINISTRATION ADVOCATES FOR FISCAL STABILIZATION FUND TO PROTECT TAXPAYERS DURING FUTURE FISCAL EMERGENCIES

HONOLULU – Governor Linda Lingle’s senior policy advisor testified before a joint Senate committee today on the importance of establishing a State Fiscal Stabilization Fund that would ensure funds are available for future fiscal emergencies by building a reserve in periods of economic growth to offset any budget shortfall during future economic downturns. 

While the Lingle-Aiona Administration remains focused on stimulating the economy and creating jobs for Hawai‘i’s residents to overcome the current economic downturn, Governor Lingle is also taking steps to minimize the impact of future fiscal emergencies. 

Under a proposal (SB2693) by Governor Lingle, voters would have the opportunity to decide on a constitutional amendment to establish a Fiscal Stabilization Fund that would require 5 percent of the year-end general fund balances to be transferred into the Fund whenever state general fund revenues for two consecutive fiscal years exceed 5 percent. 

These funds would be in addition to the current revenues from the Tobacco Settlement that are now deposited into the Emergency Budget and Reserve Fund (also known as the Rainy Day Fund). 

Transfers into the Fiscal Stabilization Fund would be suspended when the total equals 10 percent of the general fund revenues for the preceding fiscal year. 

Any use of the funds would require an emergency declaration by the governor and a two-thirds approval from both houses of the Legislature.

Based on the State’s current six-year financial plan, $1.62 million of the $32.4 million year-end balance for fiscal year 2011-2012 would be transferred into the Fiscal Stabilization Fund.  Over a four-year period for fiscal years 2011-2015, an estimated $33.8 million will be deposited into the Fund. 

A second bill (SB2692) would rename the Emergency Budget and Reserve Fund to the State Fiscal Stabilization Fund, and require that interest earned from money in the State Fiscal Stabilization Fund remain in the fund.

“The purpose of these two proposals is not to change the concept or use of the State’s Rainy Day Fund, but to ensure a steady source of revenue is available to build the fund balance for future emergencies,” said Linda Smith, senior policy advisor, in written testimony.  “We believe a constitutional amendment is the only way to safeguard against expending year-end general fund balances that in good years need to be saved rather than spent on new programs and services.”

###

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Moms for Liberty

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT