Informing the Legislature that on July 9, 2024, the Governor signed the following bill into law: HB40 SD1 CD2 (ACT 229).

This bill directs the State of Hawaii to use $435 million in excess general fund revenues for fiscal year 2024-2025, as required by the state constitution. The funds are split between two specific accounts: $300 million is deposited into the emergency and budget reserve fund to serve as a financial safety net, while $135 million is placed into the pension accumulation fund to help cover future employee benefit liabilities. This action satisfies the constitutional mandate to dispose of surplus tax money when certain economic conditions are met. The law takes effect on July 1, 2024, and includes a formal declaration that these expenditures exceed the state's annual spending limit by approximately $323 million.