The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the House Committee on Labor on Feb. 11, 2025.
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Feb. 11, 2025 9 a.m.
Hawaii State Capitol
Conference Room 309 and Videoconference
To: House Committee on Labor
Rep. Jackson D. Sayama, Chair
Rep. Mike Lee, Vice-Chair
From: Grassroot Institute of Hawaii
Ted Kefalas, Director of Strategic Campaigns
RE: TESTIMONY IN SUPPORT OF HB1424 — RELATING TO APPROPRIATIONS
Aloha Chair Sayama, Vice-Chair Lee and other members of the Committee,
The Grassroot Institute of Hawaii would like to offer its support for HB1424, which would prohibit state government departments or agencies from using funds appropriated for positions for operating expenses, and vice versa.
The issue of funded but vacant positions has become a major budgetary concern for the state. The governor’s budget allocates funding for thousands of permanent and temporary positions, yet, according to a report from the Hawaii Department of Human Resources Development, about a quarter of all state civil service positions are unfilled.
What happens to the funds for these vacant positions?
Responsible budgeting requires greater accountability for the use of such allocations, and this bill would advance that goal. By preventing the transfer of funds intended for positions, HB1424 would help prevent agencies from using vacancies like a slush fund for other expenditures.
Grassroot does, however, have one concern regarding the bill’s exception stating that the transfer of funds is allowed “to fulfill the legislature’s purpose for which the funds were appropriated.” This wording is so vague that it could undermine the intent of the bill.
After all, one could argue that funds appropriated for certain positions and then spent on agency operations still fulfill the requisite legislative intent — especially if that position could be described as advancing the agency’s operations or mission.
If the committee does not wish to modify this exception, we suggest the addition of a reporting and justification requirement for any use of funds that would fall under this exception.
Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
