HI SB2554

Proposes amendment to Hawaii Constitution Article VII, Section 6 to add alternatives for handling excess general fund revenues when state general fund balance exceeds 5% of general fund revenues for two successive fiscal years.

Current law requires excess revenues to be returned to taxpayers via tax refund/credit or deposited into reserve funds; amendment adds two new options for legislature to choose from.

Allows legislature to appropriate general funds for pre-payment of general obligation bond debt service or pension/post-employment benefit liabilities for state employees.

Defines "pre-payment" as any payment in excess of the minimum payment required by bond covenant or law for that fiscal year.

Legislature intends alternatives to be non-self-executing and requires future statutory provisions to establish conditions that pre-payments must meet before they can be used.