One other Wet Day Slush Fund

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Many people in Hawaii are conscious that we now have an Emergency and Funds Reserve Fund, enshrined in chapter 328L, Hawaii Revised Statutes, to economize for a “wet day,” that’s to say, an emergency.  In the newest legislative session, the state finances invoice offers for an extra one billion {dollars} to be socked away into that fund, $500 million a yr.

However, because it seems, that’s not the one “reserve fund” we now have.

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Because the Division of Funds and Finance kindly explains on its web site, we now have the Hawaii Hurricane Aid Fund (HHRF).  This fund was arrange in 1993 to supply hurricane insurance coverage protection for property homeowners right here in Hawaii Nei in case the personal insurance coverage market proved unreliable.  This was regarded as a good suggestion when Hurricane Iniki whacked us in 1992.

Within the years since Iniki, nevertheless, personal insurers returned to the market.  The HHRF shut down in 2002.  Part 431P-16(i), HRS, contemplates that when the HHRF dissolves, any internet moneys remaining within the fund, after the cost of money owed and different obligations, will return to the State common fund.

Did that occur?  No.

As an alternative of dissolving the HHRF when it was clear that it was now not wanted, State officers determined to maintain the cash – simply in case.  The Division of Funds and Finance says that there’s now $186.7 million left within the fund.

Somewhat greater than ten years in the past, lawmakers did actually faucet into the fund.  After the State’s finances took some hits from the Nice Recession of 2008, legal guidelines handed in 2010 and 2011 appropriated thousands and thousands of {dollars} from the HHRF to revive public college educational days when our authorities discovered it essential to furlough state staff to make ends meet.  (Do you keep in mind “Furlough Fridays”?)  The regulation additionally allowed the Governor to faucet into the HHRF fund to keep up program ranges for important authorities companies, however required common excise tax revenues to be diverted in fiscal years 2014 and 2015 in an effort to pay again the fund.

Consequently, we now have $186.7 million on this “simply in case” fund that not too many individuals learn about.

Our state authorities is taxing us, the taxpayers, at a really excessive fee to acquire cash that simply sits round doing nothing.  Not solely are we failing to tug down federal moneys which have been made out there for us, as we now have written about on a number of events earlier than, however we’re squirreling away tens or a whole bunch of thousands and thousands of {dollars} to assemble mud in some financial institution someplace, moderately than placing the cash to make use of fulfilling primary wants.  Clearly, our lawmakers had been conscious of this secret fund, as they used the cash in 2010-11.  I’m wondering if our lawmakers right this moment learn about this as properly.  In the event that they do, why don’t they demand that the HHRF be dissolved with the steadiness of the fund transferred to the final fund, because the regulation requires?  Actually, there’s a want for some cash to be stored apart simply in case, however we have already got a wet day fund for simply that goal.  We fed $500 million to that fund final yr and are on observe to stuff it with one other billion {dollars} this and subsequent yr.

Let’s make it simpler for everybody.  If we’re going to put cash apart simply in case, let’s have it in a single place, the official Emergency and Funds Reserve Fund.  That means everybody is aware of the place it’s, why it’s there, and the way a lot is put aside.  No hoarding money away in slush funds!

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