GOVERNOR LINGLE ISSUES DEPARTMENTAL MEMO LIFTING RESTRICTIONS ON FUNDING FOR FY ‘04

For Immediate Release: September 16, 2003

HONOLULU – In an executive memo issued yesterday, Governor Linda Lingle informed all state departments that statewide restrictions on funding will not be extended or imposed on full-year departmental budget allocations for fiscal year 2004.  The Governor based her decision on the official projections made yesterday by the Council on Revenues that economic conditions in Hawai`i would improve and be relatively favorable through fiscal years 2003-2005.

“While projected state revenues are expected to increase, they are still just projections, not money in the bank.  Therefore, our administration will continue to exercise fiscal discipline when it comes to spending,” said Governor Lingle.  “In this fiscal year and the next, our task will be to ensure a disciplined and balanced budget that does not impose further financial burdens on the citizens of the state, while continuing to provide essential government services.”

In addition to lifting the allocation restrictions, the Governor also issued budget execution policies and instructions to the departments, which include:

Maintaining strict controls over filling of non-essential positions.

Requiring all consultant/personal service contracts to be approved by the Governor and the Department of Budget & Finance (B&F), except for certain contracts and purchases costing less than $25,000.

Requiring all capital improvement project (CIP) appropriations requested for FY04 to be submitted as a “comprehensive departmental plan of expenditure” for prior review and approval by the Governor and B&F.  In addition, detailed justifications for release of funding for all CIP projects initiated by the Legislature for FY04 will be required.

“During these challenging times, our departments will continue to make responsible choices and decisions based on the new policies, and ensure that government services are provided in a consistently manageable and affordable manner,” Governor Lingle said.

“The public has given tremendous support to our efforts to restore fiscal discipline, and for that I am grateful,” Governor Lingle added.

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For more information, contact:
Georgina Kawamura
Director, Budget & Finance
Phone: 586-1518

Lenny Klompus
Senior Advisor – Communications
Phone: 586-7705

Russell Pang
Chief of Media Relations
Phone:  586-0043