HI SB2555

Appropriates $1,000,000 from general revenues to the Emergency and Budget Reserve Fund for fiscal year 2015-2016.

Directs the Director of Finance to transfer the constitutionally-required tax credit or tax refund amount to the emergency and budget reserve fund instead of distributing to taxpayers.

Implements Article VII, Section 6 of the Hawaii Constitution, which requires a tax refund or fund deposit when state general fund balances exceed five percent of state general revenues for two successive fiscal years.

Legislature determined that depositing excess revenues into the reserve fund serves as a better fiscal strategy than providing tax credits to address potential future emergencies and revenue shortfalls.

Takes effect upon approval.