SB2600 is a fiscal measure that implements article VII, section 6 of the Hawaii Constitution by directing $50 million from general revenues into the state’s emergency and budget reserve fund for fiscal year 2026-2027. The bill states that the constitutional conditions for disposing of excess general fund revenues have been met for two consecutive fiscal years, and it chooses the reserve-fund option rather than issuing taxpayer refunds/credits or using the money for debt or pension prepayment.
The bill’s practical effect is to appropriate general funds and increase the balance of the emergency and budget reserve fund, which is intended to serve as a financial cushion during emergencies, economic downturns, or other revenue shortfalls. It does not create a new program or change tax rates; instead, it reallocates surplus revenue into a constitutionally authorized reserve account under section 328L-3, Hawaii Revised Statutes, effective July 1, 2026.
Impact
SB2600 amends state fiscal operations by making a one-time $50 million appropriation from the general fund to the emergency and budget reserve fund. It affects the state treasury and reserve-fund balance, but does not directly alter tax liability, benefits, or regulatory programs. The bill operates within the constitutional framework for excess revenues and reinforces the state’s rainy-day reserve mechanism under Hawaii law.
Sentiment
The bill appears to have been broadly supported in the legislative process, passing the Senate Ways and Means Committee unanimously and later advancing through conference with unanimous votes in both chambers. The available voting history suggests general agreement that the state should strengthen its reserve position and comply with the constitutional requirement to dispose of excess revenues. However, the governor’s notice of intent to veto indicates that executive-branch concerns remained even after legislative approval.
Contention
The main point of contention appears to be not whether excess revenues should be disposed of, but how they should be used. Under the constitution, lawmakers could have chosen taxpayer refunds or credits, deposits into reserve funds, or prepayment of debt or pension liabilities; SB2600 selects the reserve-fund deposit option. The governor’s notice of intent to veto suggests disagreement with the bill’s chosen fiscal approach, though no committee transcript is available to identify specific objections. The bill’s supporters seem to favor bolstering the emergency and budget reserve fund, while any opposition likely centers on alternative uses of the surplus or broader budget priorities.
Applying to the Congress of the United States to call a convention under Article V of the United States Constitution for the limited purpose of proposing one or more amendments to the constitution to impose fiscal restraints on the federal government, to limit the power and jurisdiction of the federal government, and to limit the terms of office of federal officials and members of Congress.
Applying to the Congress of the United States to call a convention under Article V of the United States Constitution for the limited purpose of proposing one or more amendments to the constitution to impose fiscal restraints on the federal government, to limit the power and jurisdiction of the federal government, and to limit the terms of office of federal officials and members of Congress.
Proposing An Amendment To Article Xvii, Section 3 Of The Hawaii Constitution To Specify That The Standard For Voter Approval Of A Constitutional Amendment Proposed By The Legislature Is A Majority Of All The Votes Tallied Upon The Question.
Proposing An Amendment To Article Xvii, Section 3 Of The Hawaii Constitution To Specify That The Standard For Voter Approval Of A Constitutional Amendment Proposed By The Legislature Is A Majority Of All The Votes Tallied Upon The Question.
Proposing An Amendment To Article Xvii, Section 3 Of The Hawaii State Constitution To Specify That The Standard For Voter Approval Of A Constitutional Amendment Proposed By The Legislature Is A Majority Of All The Votes Tallied Upon The Question.