COM 0787.001 2010-2012 - Laserfiche WebLink

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closing balance of the HECF as of June 30, 2010 was $4.6 million and $4.1 million as of June 30, 2011. We have not reconciled the HECF for fiscal year 2012, but.believe that it will close around $3.5 million. The HECF balance has steadily been decreasing each fiscal year. HECF's revenue is generated by taxpayers designating $3 from their state income tax to the fund. In the past five years, an average of $203,000 has been designated to HECF as a result of this check- off. Interest earned on the principal yields about $200,000 and we believe that in consideration of the low interest rate, the return will be a lot less. In addition, if the principal is reduced, the interest income is reduced. For 2010 elections, a total of $188,286 was disbursed from the HECF to pay for twenty -two (22) qualifying candidates in the partial public funding program and a total of $147,716 was disbursed from the HECF to pay for eight (8) qualifying candidates in the comprehensive public funding program for the Hawaii County Council pilot program. Accordingly, $336,000 was expended to pay for the two public financing programs: To date, for 2012 elections, there are eight (8) HCCCPF candidates and a total of $195,428 disbursed as well as four (4) partial public funding qualified candidates and a total of $15,349 disbursed for a sum of $210,777 even before the primary election. There are 292 candidates on the 2012 statewide ballot. The Commission understands that you may receive strong support for this resolution. We would submit that the Hawaii County Council comprehensive public funding is a pilot project which is in its second year of implementation. We maintain that the reasons advocating and supporting this program such as, but not limited to, increasing the candidate pool and competitiveness as well as voter turnout, grass root initiatives, and citizen participation have yet to be evaluated and assessed to determine whether the program should be expanded statewide as suggested by this resolution. For the foregoing reasons, the Commission strongly suggests that the prudent course is to review this program as it unfolds to permit lawmakers and taxpayers to make an informed decision as to the program's effectiveness. Alternatively, if this resolution passes, the Commission recommends that funding be appropriated pursuant to HRS § 11- 421(b)(2) to properly fund and staff the additional program requirements. Comparable programs in the U.S. have separate funding sources which should be examined and presented. 2 An average of $201,000 per election year over the last five elections was disbursed from the HECF to pay for qualifying candidates in the partial public funding program. 2010 was the first year for the comprehensive public funding program so an average cannot be computed.