Discrepancies hold up budget, bond-authorization bills
Governor Abercrombie announced a plan today to address discrepancies between the budget and bond-authorization bills preventing each from being signed.
An approximate $444 million inconsistency between the State’s budget bill and its bond-authorization bill is preventing each bill from being signed into law by the governor. Governor Abercrombie, together with Attorney General David Louie and Finance Director Kalbert Young announced a plan today to address the inconsistency.
“The proposed solution is the most efficient path to resolving this situation without the need for any additional costs to the taxpayer,” Gov. Abercrombie said today. “I have consulted with the Speaker of the House, Senate President and the Department of Education. Working together, we believe we can enter the new fiscal year with a functional budget.”
Attorney General Louie and the Department of Budget and Finance advised the governor that the projects authorized in the Budget Bill (HB1700) exceed the amount certified in the Bond Declaration Bill (HB1712).
“Due to legal issues, I have advised the governor that he would not be able to sign the executive supplemental budget bill for fiscal year 2015 in its current form,” said Louie. “In addition, once the budget bill is reconciled, the Bond Declaration Bill could be signed no earlier than July 1, 2014.”
After reviewing the bills, the Department of Budget and Finance determined that the sources of the discrepancies are the state educational facilities improvement (SEFI) authorization, the Judiciary budget, standalone appropriation bills and lapsed projects.
“We were able to pinpoint specific areas that were omitted in the bills passed by the Legislature and have concluded that it will require the governor to reconcile these bills in order to begin the new fiscal year, which starts July 1, with a working supplemental budget,” said Young.
Working with legislative leaders and the Department of Education (DOE), Gov. Abercrombie’s proposed solution would temporarily reduce the general obligation bond appropriation of SEFI projects through a line-item reduction in the budget bill. The total amount of bond projects authorized in HB1700 will therefore not exceed the amount certified in the bond declaration bill HB1712.
This would be predicated on the need for the Legislature to make whole the amount reduced from the SEFI authorization when it reconvenes in regular session in January 2015. The DOE confirmed that it will plan to minimize impacts on projects already in the queue.