Hawaii Senate Bill SB1348

Hawaii 2025 Regular Session

• Introduced: 1/23/25
• Refer: 1/27/25
• Report Pass: 2/7/25
• Refer: 2/7/25

Caption

Relating To Public Employment Cost Items.

Summary

SB1348 is a fiscal measure that appropriates or authorizes funding for collective bargaining cost items for Hawaii public employees in bargaining unit (3) for the 2025-2027 biennium. The bill covers negotiated salary increases and other cost adjustments for unit (3) employees in state departments, the Department of Education, the Judiciary, and the Hawaii Health Systems Corporation, and it also extends comparable adjustments to excluded employees who are in the same compensation plans as unit (3) members. The bill is structured in multiple parts to allocate funds by employer group and funding source, including general, special, federal, and other funds where applicable, with the director of finance responsible for allotment in most cases and the chief justice or Hawaii Health Systems Corporation responsible for expenditure in their respective areas. It also includes standard provisions that prorate payments from the correct funding sources, lapse unspent funds at the end of each fiscal year, and declare that the state’s general fund expenditure ceiling for FY 2025-2026 is exceeded because of these appropriations. Although the bill text shows zero-dollar placeholders in the appropriations tables, its purpose is to authorize the funding framework for the negotiated labor costs. The general sentiment reflected in the available history is favorable and noncontroversial at the committee level: the Senate Labor and Technology Committee passed the bill with amendments on a 4-0 vote. No committee transcripts were provided, so there is no recorded debate to indicate broader opposition or support arguments beyond the procedural approval. The main point of potential contention is fiscal, not policy-based. The bill expressly acknowledges that it would exceed the state general fund expenditure ceiling for FY 2025-2026, which can raise concerns about budget capacity and constitutional spending limits. Otherwise, the measure appears to be a routine implementation bill for collective bargaining obligations, affecting state workers, the judiciary, education employees, and Hawaii Health Systems Corporation personnel tied to bargaining unit (3).

Impact

SB1348 would amend state spending authority for the 2025-2027 fiscal biennium by authorizing appropriations for negotiated labor cost items and related salary adjustments under chapter 89C, Hawaii Revised Statutes, for bargaining unit (3) and similarly situated excluded employees. It affects funding and payroll administration for executive branch agencies, the Department of Education, the Judiciary, and the Hawaii Health Systems Corporation, while requiring the director of finance to allot funds and ensuring costs are charged to the proper funding sources. The bill also formally recognizes an expenditure ceiling overrun for FY 2025-2026, which has implications for state budget compliance and general fund management.

Sentiment

The available record suggests broad procedural support and little visible opposition. The bill advanced out of the Senate Labor and Technology Committee unanimously, 4-0, with amendments, indicating agreement that the state should fund the negotiated collective bargaining obligations. Because no transcripts are available, there is no detailed record of concerns or advocacy beyond the committee’s favorable action.

Contention

The primary contention is fiscal: SB1348 states that the general fund expenditure ceiling for FY 2025-2026 has already been exceeded and that the bill would increase that overage further. That could prompt concern from budget hawks, fiscal watchdogs, or lawmakers focused on constitutional spending limits. There is no evidence in the provided materials of opposition to the labor agreements themselves; rather, any dispute would likely center on affordability, ceiling compliance, and the timing or size of the appropriations needed to implement the negotiated raises and adjustments.