SENATE WAYS AND MEANS - Overview of HB1700 SD1 (Budget Bill) and the State Financial Plan Presentation Overview - April 11, 2016 Operating Budget Capital Improvements Budget State Financial Plan (on a separate spreadsheet)

1. SENATE WAYS AND MEANS
Overview of HB1700 SD1 (Budget Bill) and the State Financial Plan
April 11, 2016

2. Presentation Overview
•Operating Budget
•Capital Improvements Budget
•State Financial Plan (on a separate spreadsheet)

3. I. Operating Budget

4. Operating Budget –The Big Picture
• Act 119, SLH 2015 (Last year’s budget act) appropriated $6.8 Billion in General
Funds, $3.1 Billion in Special Funds, and $2.6 Billion in Federal Funds
$6,834,254,853
$3,141,781,448
$2,626,481,237
$145,983,446
$87,320,264
$446,565,221
$14,111,037
Act 119, SLH15 Base Appropriations by MOF
General Funds Special Funds
Federal Funds (formulaic + competitive) Trust Funds
Interdept. Funds Revolving Funds
Other Funds (incl. Private and County)

5. Base Appropriation by Department
• This is how the general funds appropriated in Act 119, SLH15 are broken out by
Department:
AGR
0% AGS
2%
ATG
1%
BED
0%
DEF
0%
EDN
38%
GOV
0%
HHL
0%
HMS
28%
HRD
0%
HTH
12%
LBR
0%
LNR
1%
LTG
0%
PSD
6%
TAX
1%
UOH
10%
GENERAL FUND DISTRIBUTION OF BASE
APPROPRIATION (EXCLUDING BUF) MainTakeaway:
• Including Department of Budget and
Finance would skew the data because we
pay for fringe benefits, debt service, etc.
centrally. ~37% of our general funds go to BUF
• Department of Education and
Department of Human Services
constitute the largest general fund budget

6. HB1700 –
The Governor’s Budget vs.The Senate Draft
• The Governor’s Budget proposed to add 526 positions $335M in general funds for FY17
• The Senate Draft reduced this by 71 positions and $215M, resulting in a total add of
$120M in general funds for FY17
• In addition to this, the Senate Draft reduced appropriations in FY16 by $13.5M in general
funds.
• The Governor’s budget numbers referenced above include Governor’s Messages #1, 2, 3,
and 6. Because of timing,Governor’s Messages #4 and 5 were not included. Although
Governor’s Message #6 arrived onApril 4, the Senate Draft still included it because it
pertained to HHL.
• The Senate Draft budget numbers only include general fund appropriations in the
Operating budget, and therefore do not include $43M in general funds allocated in the CIP
Budget for HPHA ($29M) and CIP Staff Costs (14.4M)

7. General Fund Adds by Department
Primary Differences between Gov and
Senate Draft include:
• Gov budget added $164M for 100% pre-
funding of Other Post Employment Benefits.
Senate Draft did not.
• Senate Draft added $7.9M to HHSC Corporate
Cost Allocation, in addition to their $21M
operating subsidy and $10M additional funds
for regions and Maui Health System seed
capital.
• Gov budget added $9M for DOE utilities,
Senate Draft reduced this to $5.2M due to
revised projections.
• Senate Draft reduced the Medicaid budget
due to cost savings.
• Senate Draft added $500k for pesticide
regulation in Dept. of Ag.
Governor's Budget Senate Draft Difference (SD-Gov)
AGR 85,118.00$ 527,618.00$ 442,500.00$
AGS 5,504,894.00$ 2,599,043.00$ (2,905,851.00)$
ATG 2,128,300.00$ 1,792,938.00$ (335,362.00)$
BED 6,134,165.00$ 5,685,749.00$ (448,416.00)$
BUF 130,084,811.00$ (33,960,077.00)$ (164,044,888.00)$
DEF 3,610,068.00$ 4,151,704.00$ 541,636.00$
EDN 43,845,628.00$ 42,604,716.00$ (1,240,912.00)$
GOV 578,974.00$ 300,000.00$ (278,974.00)$
HHL 8,192,157.00$ 8,192,157.00$ -$
HMS 56,488,864.00$ 22,423,231.00$ (34,065,633.00)$
HRD 553,262.00$ 280,012.00$ (273,250.00)$
HTH 53,722,386.00$ 55,675,232.00$ 1,952,846.00$
LBR 954,876.00$ 648,631.00$ (306,245.00)$
LNR 6,186,866.00$ 3,769,364.00$ (2,417,502.00)$
LTG (572,484.00)$ (575,984.00)$ (3,500.00)$
PSD 6,120,295.00$ 1,898,140.00$ (4,222,155.00)$
TAX (528,223.00)$ (790,159.00)$ (261,936.00)$
UOH 12,368,302.00$ 5,030,720.00$ (7,337,582.00)$
Total: 335,458,259.00$ 120,253,035.00$ (215,205,224.00)$

8. WAM Guiding Principles
• Taking a systems approach in connecting and rebuilding resources across a spectrum
Example: adding 36 positions and $2.7M in funds for a multi-skilled worker team in HPHA,
as well as $29M in general fund CIP support for R&M of housing units.
• Encouraging departments to utilize their existing base appropriations
Example: Medicaid is able to re-direct $20M in FY16 savings and $23M in FY17 to fund
current and new programs, such as Autism, Adult Dental Benefits, and Data Resources
Index Rate
• Funding administration and personnel needs that departments require in order to complete their
core operations
Example: Adding $600k in general funds for a new budget system in the Department of
Budget and Finance.

9. Hawaii Health Systems Corporation
• The Senate Draft included the following adjustments:
• $21M in operating subsidy
• $10M in additional subsidy to the regions, or to bridge shortfall for Maui Health seed capital at the end of the fiscal year
• $7.9M in non-recurring general funds for Corporate Cost Allocation to prevent negative impact for the regions

10. Homeless Services
• The Senate Draft added over $7M in general funds to the following for homeless services
statewide:
• $3M for Housing First (1.5M of this would go to the Neighbor Islands)
• $2M for Rapid Re-housing
• $1.1M for Homeless Outreach
• $450k for a new Kakaako Homeless Shelter
• 3 positions and $235k for the Governor’s Homelessness Special ProjectsTeam
• $250k for Data Analysis for Homeless Management Information System (to help monitor
contracts & provide more reliable program outcome data)
• $200k for Stored Property Program
• 2 Positions and $108k for 2 Program Specialists to monitor contracts
• These adjustments provide a statewide spectrum of support, and recognize homelessness as
not anOahu-centric issue

11. Hawaii Public Housing Authority
• The Senate Draft recognizes affordable housing in both the Operating and CIP budget
as a serious issue that needs to be addressed statewide.
• The Senate Draft included the following adjustments for HPHA:
• 36 positions and $2.7M in revolving funds for a multi-skilled worker team
• $29M in general funds in the CIP Budget for the R&M of HPHA housing units
• 16 positions and $1.2M in general funds for additional housing vouchers
• 1 additional position for the State Rent Supplement Program, so that they can more effectively
spend their base budget

12. Hawaiian Home Lands
• The Senate Draft includes the Governor’s Message from April 4, 2016 concerning FY16
and FY17 appropriations for HHL.
• The Governor’s Message adds:
• Reduces the department’s $9.6M in general funds in their base budget.
• Adds $17.1M in FY16 and $17.8M in FY17
• These figures represent what the Department of Budget and Finance believe constitute Admin and
Operating Expenses for the department
• These figures do not include the fringe benefits that the Department of Budget and Finance will pay
annually, over $5M per year

13. IT and the Office of Enterprise Technology
Services (OETS)
• The Senate Draft worked on consolidating Microsoft Office 365 requests through
the OETS, requiring them to pay for the licenses from their base budget.
• The Senate Draft also saw that the OETS realizes significant amounts of contract
savings, and encouraged the Office to use their contract savings to fund IT needs.
• The Department of Human Services had several IT requests, the Senate Draft
appropriated funds for Homeless Management Systems and KOLEA, and then
provided the Department 75% of their total request in order to fund their most
important IT priorities

14. Medicaid
• The Senate Draft inquired into the Medicaid budget, and the Department was able to
provide information on expected savings for FY16 and FY17
• Medicaid expected savings for FY16 = $20M*
• Medicaid expected savings for FY17 = $23M*
• Because of these savings, the department is able to fund their new and existing programs
and services, such as Autism, Hep C,Adult Dental, and DRI.
• Additionally, the Senate Draft lapsed $15M in general funds for FY16 from Medicaid (with
Departmental consent)
*This is subject to change, due to revised projections from the Department of Human Services.

15. Natural Resource Management and
Environment
The Senate Draft added the following adjustments pertaining to Natural Resource
Management and the Environment:
• $1.5M inTAT funds for theOffice of Conservation and Coastal Lands for beach restoration
• $1.5M in general funds for US Geographical Hawaii Stream Study
• $1M inTAT funds for State Parks
• $500k inTAT funds for the Division of Forestry andWildlife
• 18 positions and $617k in general funds for the operation of harbor facilities six days a week
• $600k in general funds forWildfire Contingency Aloha+ Initiatives
• $500k in general funds for Pesticide Regulation
• $250k in general funds for Endangered Species Management
• $250k in general funds for Marine Debris Removal
• $190k in general funds for the Na Ala Hele and Game Management Programs
• 1 temporary position and $91k in general funds for a Statewide Sustainability Coordinator

16. Other Notable Senate Draft Adjustments Include:
• $16.5M forWSF
• $10M for English Language Learners
• $2M for Skilled Nursing
• $6.9M for StudentTransportation
• $6M for Pre School Open Doors
• $5M for HI-Growth
• 1 temporary position and $100k for Hawaii Broadband Initiative
• 1 temporary position and $91k for aTransit-Oriented Development
Coordinator
• $4.7M for State Hospital Deficit
• $2.8M for the Home and Community Based Services Waiver
• 33 positions and $1.7M forVector Control branch in Health (for Dengue
Fever and Newly Emerging HealthThreats)
• $3M for Kupuna Care
• $3M for UH Cancer Center
• $1.5M for Equipment for the Community Colleges
*all of the above are in general funds
For a complete list of adds, please
see the HB1700 SD1 Budget
Worksheets posted on the Capitol
Website.
Budget Worksheets are located here:
http://www.capitol.hawaii.gov/session2
016/worksheets/HB1700SD1Worksheets
(Revised%20Exec).pdf
The Committee Report also includes
information on the Committee’s
conceptual framework:
http://www.capitol.hawaii.gov/session2
016/CommReports/HB1700_SD1_SSCR
3575_.htm

17. II. Capital Improvement Projects
(CIP)

18. Departmental Breakdown of General Obligation Bond
Funds for FY17
AGR
12%
AGS
2%
BED
9%
BUF
9%
DEF
2%EDN
27%
HHL
1%
HMS
0%
HTH
15%
LNR
3%
PSD
2%
SUB
1%
TRN
0%
UOH
17%
General Obligation Bond Funds
AGR AGS BED BUF DEF EDN HHL
HMS HTH LNR PSD SUB TRN UOH
$1.3B appropriated in GO Bond
Funds for FY17
$4.7B appropriated in all MOF for
the biennium

19. CIP Highlights
• Hawaii State Hospital – $160M for state hospital
• Agriculture - $107M to purchase 8,000 acres of ag land for local farmers
• Education - $30M for School AC
• Housing - $35M for HPHA, $50M for Rental Housing Revolving Fund, $33M for
Dwelling Unit Revolving Fund, and $59M for projects in each county for
affordable housing (breakout on next slide)
• Wahiawa General Hospital - $5M to purchase two parking lot parcels owned by
Wahiawa Hospital Association with the option of leasing the parcels to the
hospital at a nominal rate

20. CIP – Affordable Housing Projects
Include:
• $15M for Alder Street phase 1 of mixed-use housing and mulit-use juvenile
services and shelter center
• $5M for master planned housing community in Eleele, Kauai
• $5M to purchase courtyards atWaipouli in East Kauai
• $1.5M for senior housing project in Pukalani, Maui
• $9M for affordable rental housing project in Kihei, Maui
• $5.5M for infrastructure for affordable housing project in West Hawaii
• $6.75M for affordable rental housing project in East Hawaii
• $9M for affordable housing and treatment services in Iwilei

21. Big Items in Bills:
• Collective Bargaining Bills
• World Conservation Congress (HB2037)
• Kupuna Care (HB1878)
• Rainy Day Fund Bill (SB2555)
• OPEB Pre-Funding (SB2556)
• Homeless Bills (SB2559, SB2560, SB2569, SB2570, HB1774)
• AC in Schools (SB2136)
• Transient AccommodationTax (SB2987)
• Highway Fund (HB2086)
• Housing (HB2244)