Proposal 065: Require fiscal impact assessments for proposed Council legislation and Charter amendments

from Grassroot Institute

The following text was submitted recently to the 2025 Honolulu Charter Commission for consideration as a possible proposed amendment to the Honolulu City Charter, with final approval to be determined by popular vote in the 2026 general election. The questions being answered were posed by the Commission.

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What issue or concern are you trying to address?

This proposal would amend the Honolulu City Charter to require the city auditor to prepare a fiscal impact assessment for all proposed Charter amendments and Council legislation. 

The assessment would estimate the potential cost or savings to city taxpayers resulting from the adoption of each amendment and would be made publicly available no later than 60 days before the election in which the proposed amendments appear on the ballot.

Currently, voters are not provided with independent, nonpartisan information about the financial impact of proposed Charter amendments. While the city auditor already performs financial and performance audits, there is no entity formally responsible for assessing how proposed amendments might affect city revenues, expenditures or fiscal operations.

This amendment ensures that voters, policymakers and city officials have objective fiscal information before voting on structural or operational changes to the city Charter. 

By designating the city auditor to perform these analyses, the process would remain independent of both the City Council and the mayor.

This requirement would enhance transparency, accountability and informed decision-making during Charter amendment elections.

Describe the change you are proposing:

Add “e” and “f” to “Section 3-502. Powers, Duties, and Functions” —

It shall be the duty of the city auditor to conduct or cause to be conducted:

(a) The annual financial audit of the city, as required by Section 3-114;

(b) Performance audits of the funds, programs, and operations of any agency or operation of the city as requested by the council by resolution, as authorized by Section 3-114; 

(c) Performance and financial audits of the funds, programs, and operations of any agency or operation of the city, as determined by the auditor to be warranted. Before the commencement of each fiscal year, a plan of the audits proposed to be conducted by the auditor during the fiscal year shall be transmitted to the council for review and comment, but not approval. The plan also shall be transmitted to the mayor and filed with the city clerk as public record; and

(d) Follow-up audits and monitoring of compliance with audit recommendations by audited entities.

(e) An assessment of the fiscal impact of all proposed charter amendments; provided that this assessment shall be made available to the public no later than sixty days prior to the election in which the Charter amendments shall be voted upon.

(f) Assessments of the fiscal impact of proposed bills; provided that the auditor can utilize information from any federal, state or city department or agency and any other source the auditor deems useful to make assessments. The assessment of a bill’s fiscal impact shall be made available to the City Council and the public at least 48 hours prior to the bill’s second reading. The auditor may create administrative rules to carry out this section.

Explain what you hope this amendment will accomplish:

Currently, voters are not provided with independent, nonpartisan information about the financial impact of proposed Charter amendments. While the city auditor already performs financial and performance audits, there is no entity formally responsible for assessing how proposed charter amendments and Council legislation might affect city revenues, expenditures or fiscal operations.

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RELATED: Grassroot submits proposals to Honolulu Charter Commission -- “Honolulu City Council Chair Tommy Waters and city Managing Director Mike Formby also submitted proposals regarding fiscal notes”