Reps. Marumoto and Ward address HB1033 – Public Finance; Clean Economy Bank

Establishes the Clean Economy Bank of the State of Hawaii to provide financing support and risk management for qualifying clean economy projects to aid in the development of Hawaii’s clean energy economy and to lessen the State’s dependence on imported energy. Department of Budget and Finance opposes for multiple reasons including: Given the State’s current economic situation, the bill would overextend the State’s financial resources in such a way that it could be detrimental to the State’s credit rating; It opposes the use of general funds to finance initial costs and potential recurring costs;… the purposes of the bill may be achieved through other programs that do not put state funds at risk; Allocating funds for this bill would reduce funding for other programs in the State; Deposits made into the bank would be guaranteed by the State; however, the State’s ability to issue general obligation bonds may be reduced as the amounts guaranteed for the bank will count against the State’s Debt Limit. Right now, all allocations are unspecified. DCCA was concerned about the the composition of the board (lack of experienced members). Board members incl. political appointees and labor organizations.


excerpt from Capitol TV

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