HomeMy WebLinkAboutCOM 0177.151 1998-2000AL KONISHI
County Clerk
May 13, 1999
TO:
ra NO no -31
OFFICE OF THE COUNTY CLERK
Council Members
Connie Kiriu Al__
Legislative Auditor
County of Hawaii
Hawaii County Building
25 Aupuni Street
Hilo, Hawaii 96720
v
DONALD IKEDA
Deputy County Clerk
CONSTANCE R. KIRIU
Legislative Auditor
RECEi1�t�► "*'
lime Date-3-hal/7
_y� -
County Council
RE: Bill No. 45, Operating Budget
SB 1518 (CD 1) -Employees' Retirement System (ERS)
Employer Appropriations
This is to transmit (1) Senate Bill No. 1518 , CD 1, relating to Government Operations, (2) the
related Conference Committee Report and (3) a `Revised Employer Appropriations' spreadsheet
from State Employees' Retirement System Administrator David Shimabukuro.
In passing SB 1518, CD 1, the Legislature intended to earmark the use of excess investment
earnings of the Employees' Retirement System to fund retroactive pay raises and cost items for
HGEA and UPW contracts expiring on or before June 30, 1999 and which have been approved
under section 89-10(b), HRS. Accordingly, the ERS has calculated the revised Employer
Appropriations for Hawaii County at $3,136,000 and not $9,205,600 projected in Bill No. 45,
Draft 2. This represents a savings of $6,069,600, which must be used to fund retroactive pay
raises for HGEA and UPW contracts.
Bill 1518, CD 1 made additional appropriations from the State's general revenues of $2,065,600
to Hawaii County for FY99-00 and $2,065,600 for FY00-01. These appropriations are required
to be expended for the purposes of SB 1518, CD 1.
The Governor has not signed the bill into law and has reportedly threatened to veto portions of
the bill. Disposition of the bill may not be known as the Council enters the final readings of the
operating budget.
The settlement costs for the retroactive pay raises for HGEA and UPW are projected at
$7,130,000 million for FY99-00. This figure does not include other costs, such as ERS
contributions and vacations/sick leave/holidays. Nor does it contain $74,088 in annual additional
payments for medical and legal plans for UPW members.
Comm. No. 17 7. 15
File No. 6 V C>
Ref, To: C 0 y N L 11.
Ref. Date Y 14 MI
We are again faced with many unanswered questions about the impact of the Legislature's action
on the County, its budget and the collective bargaining process. Similar to last year, we will
keep in close contact with appropriate parties in order to provide the most current and best
information possible. Moreover, the Mayor through Finance's Budget Division will be
submitting proposals based on the assumptions referred to in the bill.
Art.
151
THE SENATE
S.B. NO, H.D81
TWENTIETH LEGISLATURE, 19W C.D. 1
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO GOVERNMENT OPERATIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
1 PART I
2 SECTION 1. Section 88-107, Hawaii Revised Statutes, is
3 amended to read as follows:
4 "588-107 Interest. (a) The board of trustees shall
5 annually allocate the interest and other earnings of the system
6 to the funds of the system, as follows:
7 (1) The annuity savings fund shall be credited with the
8 amount of regular interest credited to members'
9 accounts;
10 (2) The expense fund shall be credited with such sums as
11 provided in section 88-116; and
12 (3) The remaining investment earnings, if any, shall be
13 credited to the pension accumulation fund.
14 (b) Beginning with actual investment earnings in fiscal
15 year 1995 in excess of the investment yield rate, to address
16 outstanding unfunded pension obligations, ten per cent of such
17 excess earnings shall be deposited in the pension accumulation
18fund; remaining excess earnings shall be applied to the amounts
1999-2437 SB1518 CD1 SMA -4
Page 2
Ito be contributed under section 88-123.
S.B. NO, 1511
H.D.1
C.D. 1
In fiscal year 1996,
2 twenty per cent of the actual investment earnings in excess of
3 the investment yield rate shall be deposited in the pension
4 accumulation fund; remaining excess earnings shall be applied to
5 the amount contributed under section 88-123. In fiscal years
61997 and 1998, actuarial investment earnings in excess of a ten
7 per cent actuarial investment yield rate shall be applied to the
8 amount contributed under section 88-123. Beginning in fiscal year
9 [1997,] 1999, one hundred per cent of the investment earnings
10 shall be deposited in the pension accumulation fund.
11 (c) The application of actuarial investment earnings to the
12 amount contributed under section 88-123 for fiscal years 1997 and
131998 as provided in subsection (b) is a one-time only provision
14 and no law shall be enacted to again require the employees'
15 retirement system to apply actuarial investment earnings to
16 offset the amount contributed under section 88-123."
17 SECTION 2. Section 89-9, Hawaii Revised Statutes, is
18 amended by amending subsection (a) to read as follows:
19 ,(a) The employer and the exclusive representative shall
20 meet at reasonable times, including meetings in advance of the
21employer's budget -making process, and shall negotiate in good
22faith with respect to wages, hours, the number of incremental and
23 longevity steps and movement between steps within the salary
1999-2437 SB1518 CD1 SMA -4
Page 3
S. B, 1,51NO, H.D81
C.D. 1
1 range, the amounts of contributions by the State and respective
2 counties to the Hawaii public employees health fund to the extent
3 allowed in subsection (e), and other terms and conditions of
4 employment which are subject to negotiations under this chapter
5 and which are to be embodied in a written agreement, or any
6 question arising thereunder, but such obligation does not compel
7 either party to agree to a proposal or make a concession[.];
8 provided that the parties may not negotiate with respect to cost
9 items as defined by section 89-2 for the biennium 1999 to 2001
10 and the cost items of employees in bargaining units under section
1189-6 in effect on June 30 1999 shall remain in effect until
12 July 1, 2001."
13 SECTION 3. The savings realized by the State and the
14 counties under this Part shall be utilized for the purpose of
15funding retroactive cost items for HGEA and UPW contracts
16 expiring on or before June 30, 1999, and which have been approved
17 under section 89-10(b), Hawaii Revised Statutes, and other
18 necessary items.
19 SECTION 4. There is appropriated out of the general
20 revenues of the State of Hawaii the sums of:
1999-2437 SB1518 CD1 SMA -4
Page 4 S. B. N01 151
H.D81
C.D. 1
1 1998-1999 1999-2000 2000-2001
2 City & County
3 of Honolulu -0-
4 Hawaii County -0-
5 Maui County 2,133,499
11,059,400
2,065,600
2,701,400
11,059,400
2,065,600
2,701,400
6 Kauai County 154,500 858,900 858,900
7 SECTION 5. The sums appropriated shall be expended by the
8 respective counties for the purposes of this Act.
9 PART II
10 SECTION 6. The legislature finds that our state departments
Hand agencies should constantly be working towards improving the
12 effectiveness and efficiency of our government. Improving
13 government operations through strategic planning can result in
14increased and more effective government programs and improved
15 coordination among different agencies and levels of government,
16and optimal use of state funds and personnel.
17 The legislature believes that the development of goals and
18 objectives is essential for state departments and agencies to
19 determine priorities, guide their decisions, and measure the
20 effectiveness of their programs and services. Moreover, goals
21and objectives would assist the legislature in evaluating the
22budgetary needs of departments and agencies.
23 The legislature further finds that many of our State's
24 departments and agencies have not formally established goals and
1999-2437 SB1518 CD1 SMA -4
Page 5
S.B. NO, 1518
H.D. 1
C.D. 1
lobjectives. Accordingly, the purpose of this Act is to require
2 all departments and agencies to identify their goals, objectives,
3 and policies, to provide a basis for determining priorities and
4 allocating limited public funds and human resources.
5 SECTION 7. Every department and agency of the State shall
6 develop and submit to the legislature twenty days prior to the
7 start of the regular session of 2000 and each regular session
8 thereafter, an annual report addressing the following:
9 (1) A statement of goals, including what the department or
10 agency hopes to accomplish both short and long term;
11 (2) Objectives and policies, specifically setting forth how
12 each goal can and will be accomplished;
13 (3) An action plan with a timetable indicating how the
14 established objectives and policies will be implemented
15 in one, two, and five years; and
16 (4) The process that the department or agency will use to
17 measure the performance of its programs and services in
18 meeting the stated goals, objectives, and policies.
19 PART III
20 SECTION 8. If any provision of this Act, or the application
21thereof to any person or circumstance is held invalid, the
22invalidity does not affect other provisions or applications of
23 the Act which can be given effect without the invalid provision
24 or application, and to this end the provisions of this Act are
1999-2437 SE1518 CD1 SMA -4
Page 6
1 severable.
2 SECTION 9.
S.B. NO, 1,118
H.D. 1
C.D. 1
This Act shall take effect on June 30, 1999;
3 provided that sections 4 and 5 shall take effect on July 1, 1999;
4 and provided further that upon approval of this Act, section 1
5 shall take effect retroactive to July 1, 1996.
1999-2437 SB1518 CD1 SMA -4
REPORT TITLE:
ERS Excess Earnings
DESCRIPTION:
Takes the excess earnings of thb ERS to fund retroactive pay
raises. Requires all departments and agencies to identify
goals, objectives, and policies to provide basis for determining
priorities and allocating public funds and human resources.
(CD1)
1999-2437 SB1518 CD1 SMA -4
F
CONFERENCE COMMITTEE REPORT NO.I tS
Honolulu, Hawaii
/a�' -W , 1999
RE: S.B. No. 1518
H.D. 1
C.D. 1
Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii
Sir:
Your Committee on Conference on the disagreeing vote of the
Senate to the amendments proposed by the House of Representatives
in S.B. No. 1518, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO GOVERNMENT OPERATIONS,"
having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.
The purpose of this measure is to:
(1) Close the Hawaii State Hospital;
(2) Authorize the Director of Health to privatize the
Hawaii State Hospital's current functions; and
(3) Create a joint legislative committee to oversee the
efforts to address Hawaii State Hospital, Hawaii
Revised Statutes.
CONFERENCE COMMITTEE REPORT NO.114Z
Page 2
Upon further consideration, your Committee on Conference has
amended the measure by deleting its substance and inserting
therefor, provisions that:
(1) Allow for the use of excess investment earnings of the
Employees' Retirement System by state and county
employers to provide funding for retroactive pay raises
and other necessary items;
(2) Provide that this use of excess i -.vestment earnings of
the Employees' Retirement System shall be a one-time
only provision and shall be effective only until
July 1, 2001;
(3) Specify that the savings realized by the State and
counties shall be used for funding retroactive cost
items for contracts expiring on June 30, 1999;
(4) Prohibit enactment of any future law that applies
excess actuarial investment earnings of the Employees'
Retirement System against the amounts contributed by
employers under section 88-123, Hawaii Revised
Statutes; and
(5) Appropriate funds to the counties for the retroactive
cost items; and
(6) Require all departments and agencies to identify their
goals, objectives, and policies to provide a basis for
determining priorities and allocating limited public
funds and human resources.
Your Committee on Conference is in accord with the intent
and purpose of S.B. No. 1518, H.D. 1, as amended herein, and
recommends that it pass Final Reading in the form attached hereto
as S.B. No. 1518, H.D. 1, C.D. 1.
Respectfully submitted,
MANAGERS ON THE PART OF THE MANAGERS ON THE PART OF THE
HOUSE SENATE
DWIGHT Y. TAKAMCo-Chair
�C7�
ROD TAM, Co -Chair
CONFERENCE
Page 3
TERRY NUI YOSHINAGA, Co -Chair
IBOB NAKAS , Member
I%A�7/1GisN !1u'JAc�f�'
NATHAN SUZUKI, ember
r,Cru,�
MARK MOSES, Member
COMMITTEE REPORT NO. l f
e ��
ANDREW LEVIN, Co -Chair
L�
CAROL FUKUNAGA Co-ChaipF
•
RIAN KANNO, Co -Chair
BRIAN T. TANIGUCHI, ir'
JONATHAN CHUN, Member
AMw' C�um wwux,.,,
UZANNE CHUN OAKLAND, Member
DAVID Y. , MerQ>dr
1999-2437 SCCR SMA -2 SB1518 CD1
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