Informing the Legislature that on July 15, 2026, the Governor signed the following bill into law: SB2600 SD1 HD1 CD1 (ACT 265).

This bill directs the State of Hawaii to transfer $50 million from the general fund into the emergency and budget reserve fund for the 2026-2027 fiscal year. The action is taken to comply with a constitutional requirement to dispose of excess tax revenues when specific conditions are met for two consecutive years. By moving the funds into a reserve account, the state sets aside money to be used as a supplemental source during future emergencies, economic downturns, or unexpected revenue shortfalls. The law takes effect on July 1, 2026, and applies to the state's overall budget management rather than targeting specific individuals or agencies.