HB795 is a fiscal measure that directs $1,000,000 in general revenues to Hawaii’s emergency and budget reserve fund for fiscal year 2025-2026. The bill is framed as an implementation of article VII, section 6 of the Hawaii State Constitution, which requires the legislature to dispose of excess general fund revenues when specified conditions are met. The measure states that those conditions have been satisfied for two successive fiscal years and that the state must therefore take action with excess tax revenues.
The bill does not create a new program or change tax rates; instead, it makes a one-time appropriation from the general fund into the state’s reserve account established under section 328L-3, Hawaii Revised Statutes. The reserve fund is intended to provide temporary supplemental funding during emergencies, economic downturns, or unforeseen revenue declines. The act takes effect on July 1, 2025.
Impact
HB795 amends state fiscal practice by appropriating $1,000,000 from general revenues into the emergency and budget reserve fund, reinforcing the statutory and constitutional framework for managing excess revenues. Its practical effect is to increase the state’s rainy-day reserves rather than returning funds to taxpayers or using the money for debt service or pension liabilities. The bill affects the general fund and the emergency and budget reserve fund, and it is relevant to state budget officials, taxpayers, and policymakers concerned with reserve levels and revenue stabilization.
Sentiment
The available voting history suggests broad support for the bill. It passed the Senate Ways and Means Committee unanimously and later passed both House and Senate conference with unanimous votes recorded in the provided history. No committee transcripts were provided, but the absence of recorded opposition and the unanimous votes indicate a generally favorable view of the measure as a prudent fiscal action.
Contention
There is little evidence of substantive contention in the available record. The main policy choice embedded in the bill is how to dispose of excess general fund revenues under the state constitution: by refunding taxpayers, funding reserves, or prepaying debt or pension obligations. HB795 chooses the reserve-fund option, which may be favored by those prioritizing fiscal stability and criticized by those who would prefer tax relief or other uses of excess revenue. However, the provided materials do not show any active disagreement or named opponents.
Proposes an amendment to Constitution specifying a method of providing for the maintenance and support of a thorough and efficient system of free public schools and allocating all income tax receipts to school districts.
Proposing a constitutional amendment to authorize the legislature to provide for an exemption from ad valorem taxation by a school district of a portion of the market value of certain leased residential real properties, to establish and prescribe the permissible uses of the property tax relief to rental households fund, and to include payments from the property tax relief to rental households fund in the exception of certain appropriations to pay for ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations.
(Constitutional Amendment) Limits the amount of State General Fund (Direct) revenues that may be appropriated in a fiscal year for recurring expenses and restricts use of such revenues above that limit (EG SEE FISC NOTE GF EX)
(Constitutional Amendment) Provides relative to the application of state monies to the unfunded accrued liability of the Teachers' Retirement System of La. (EN DECREASE SD RV See Note)