Gov. Josh Green has announced 17 bills he plans to veto from this legislative session. Several measures concern the state’s finances and the governor’s emergency powers.
Green has until July 10 to make a final decision on vetoing these measures.
In a statement, Green wrote that the state’s financial outlook drove many of his decisions.
“This veto list reflects our need to prioritize Hawaiʻi’s crippling high cost of living, the state’s affordable housing crisis and Hawaiʻi’s families impacted by the Maui wildfires,” he said.
“In doing so, I intend to veto, line-item veto or make appropriation reductions on several bills in order to maintain a balanced budget, but more importantly, to achieve a healthy carryover balance of more than $300 million at the end of next fiscal year.”
The state will need to cover a drop in its projected revenue and will also need to find ways to cover a massive income tax cut that will ramp up over the next eight years.
House Speaker Scott Saiki said many items on the intent-to-veto list were not a complete surprise to him.
“I was generally aware that there may have been some fiscal bills that would be on the list,” he said. “I was told that the governor would work to find ways to fund some of these programs or to provide the funding through his authority to reallocate funds within the state budget.”
The governor is considering vetoing a $300 million infusion into the state’s rainy day fund. Instead, he said the money should go towards the state’s carryover funds, which have been depleted because they were used to cover pandemic hazard pay for state workers.
At the beginning of the legislative session, the state had a little over a billion dollars in carryover funds. Now that’s down to $100 million. Meanwhile, the state’s $1.5 billion rainy day fund is the largest it's ever been.
Green is also considering vetoing a measure that would have given $450 million to Maui recovery. Instead, he said the money should be put in the major disaster fund, which he controls. But Green committed to carrying out the appropriations legislators outlined in the measure.
The reason for the potential veto is also largely due to a mistake in the budgeting process that resulted in the elimination of funding for the Hawaiʻi Housing Finance and Development Corporation.
Senate Ways and Means Committee Chair Donovan Dela Cruz explained that the bills are written to be more inclusive of the Legislature.
“The fact is some of those monies could still be deposited and when Maui may need additional assistance, the governor can always send down a bill as part of his legislative package that requires money from the rainy day fund,” he said.
“I think that it would be a little more conservative approach to put it in the rainy day fund and then if needed, I'm sure the Legislature is going to be open to making sure that Maui gets the assistance it needs.”
Any use of the rainy day fund requires approval from two-thirds of lawmakers.
Green is also considering vetoing a measure Dela Cruz introduced that would establish reporting requirements and deadlines for the governor when using emergency funds.
During the legislative process, his office told HPR in an email that he did not have issues with the bill’s approach.
“The governor is a strong proponent of transparency and cooperation with the Legislature,” his team wrote.
“And since this does not significantly curtail or limit the governor’s authority to make critical decisions during times of emergency, we do not take much issue with the approach in this bill.”
However, now the administration says the bill would hinder Green’s ability to respond in times of emergency.
“I can understand the rationale. That doesn't mean we necessarily agree with the rationale, but I can understand where they're coming from because they're a separate branch of government,” Dela Cruz said.
“It looks like they are not as comfortable with some of the reporting requirements and would prefer the unrestricted use of the major disaster fund.”
Green may also veto a measure that would remove the ability for the governor or mayor to suspend electronic media transmission during a state of emergency.
Media organizations say that in the wrong hands, this bill could hurt the public, who rely on the news for vital information.
Green wrote that electronic media can be used in an attack to activate a deadly device or dangerous crowd through social media.
Saiki and Dela Cruz said that both chambers will be meeting this week to discuss overriding any of the vetoes, which would require a two-thirds majority.
Click here to see the full intent to veto list.
