It’s pretty easy to keep abreast of the state’s budget and fiscal health. The governor’s budget proposals are always public and the Council on Revenues releases quarterly reports about the state’s financial situation.

Yet the state got a 64 percent score, or a D grade in the State Integrity Investigation for State Budget Processes. Leading the pack was Nebraska. Hawaii tied for 38th with place with Georgia. Oklahoma came in last.

Overall, the State Integrity Investigation ranked Hawaii 10th after Civil Beat reporters researched 330 “Corruption Risk Indicators” across 14 categories of government. (Click here to learn more about the methodology used for the project.)

Bottom line: Hawaii appears to have its bases covered on this question, but the scoring criteria do not take into account the Council on Revenues’ quarterly financial reports.

Here’s the basis of the D grade. Each day we’ll print a different question and the criteria used to come up with a score for each question. It’s your turn to evaluate whether Civil Beat got it right and to share what you think should be done to improve the situation. Share your comments at the bottom of this story.

Here’s the fourth of five questions the State Integrity Investigation asked about Legislative Accountability.

Are budget information and related records made available to citizens?

Overall score: 55%

Here are the criteria Civil Beat used to answer that question and what we found.

1. Does the state executive publish a pre-budget statement, which presents the assumptions used in developing the budget such as the expected revenue, expenditure, debt-levels, and broad allocations among sectors?

Notes: By law, the governor is required to submit a detailed budget plan for consideration as well as a multi-year financial plan (accessible here: http://hawaii.gov/budget/bienniumbudget/multiyear). The governor’s budget plan includes a detailed memo called “Budget in Brief” which presents assumptions about expected revenue, debt-levels, etc. Gov. Neil Abercrombie’s FY 2013 Budget in Brief is available online at: http://hawaii.gov/budget/executivesupplementalbudget/Budget%20in%20Brief/Budget%20_in_Brief_FY_2013.pdf.

Sources:

• Hawaii Revised Statutes, Section 37, Part 65: Responsibilities of the Governor

• State of Hawaii, FY2013 Executive Supplemental Budget, “Budget in Brief”

• Honolulu Civil Beat, Nanea Kalani, “Hawaii Gov Proposes Biggest Budget for Next Year”

Score: 100%

Scoring criteria: These are the scoring criteria for this question.
Yes: A YES score is earned if the state executive publishes a pre-budget statement.
No: A NO score is earned if no such document is published.

2. Does the state executive publish a pre-budget statement, which presents the assumptions used in developing the budget such as the expected revenue, expenditure, debt-levels, and broad allocations among sectors?

Notes: By law, the governor is required to submit a detailed budget plan for consideration as well as a multi-year financial plan. Both are public. For example, Gov. Neil Abercrombie’s FY 2013 Budget in Brief is available online at: http://hawaii.gov/budget/executivesupplementalbudget/Budget%20in%20Brief/Budget%20_in_Brief_FY_2013.pdf

Sources:

• Hawaii Revised Statutes, Section 37, Part 65: Responsibilities of the Governor

• State of Hawaii, FY2013 Executive Supplemental Budget, “Budget in Brief”

Score: 100%

Scoring criteria: These are the scoring criteria for this question.
Yes: A YES score is earned if the state executive publishes its budget proposal.
No: A NO score is earned if no such document is published.

3. Does the state legislature publish an enacted budget document that authorizes the executive to implement the policy measures outlined in the budget?

Notes: Once both chambers of the Hawaii Legislature agree, they publish an enacted budget in the form of a bill that can be accessed online. The budget passed in the 2011 legislative session can be viewed here: http://www.capitol.hawaii.gov/session2011/bills/HB200_CD1_.htm

Sources:

• Nanea Kalani, Money Reporter-Host, Honolulu Civil Beat, 9/2/11, interview at Honolulu Civil Beat office.

Score: 100%

Scoring criteria: These are the scoring criteria for this question.
Yes: A YES score is earned if the state legislature publishes the enacted budget.
No: A NO score is earned if no such document is published.

4. Does the state executive publish monthly or quarterly in-year reports on revenues collected, expenditures made, and debt incurred?

Notes: No such year-end report is published by the governor.

The closest such report would come from the Hawaii Council on Revenues. The nonpartisan, unpaid group of seven economists and business executives provides long- and short-term forecasts of the state’s economy. The group falls under the State Tax Department. By law, what the group reports has to be considered by the governor and lawmakers in determining state expenditures, enacting any revenue-related legislation, and preparing the state’s budget.

The group prepares forecasts on state revenues for each fiscal year as well as quarterly estimates that include all taxes and income owed to the state. Its revenue estimates and any revisions are reported every June 1, September 10, January 10, and March 15 to the governor and Legislature. Those reports can be accessed here: http://state.hi.us/tax/a9_1cor.htm

Sources:

• Honolulu Civil Beat, Nanea Kalani, https://civilbeat.org/topics/council-on-revenues/

Score: 0%

Scoring criteria: These are the scoring criteria for this question.
Yes: A YES score is earned if the state executive publishes monthly or quarterly in-year reports.
No: A NO score is earned if no such document is published.

5. Does the state executive publish a mid-year review for the first six months of the budget year to discuss any changes in economic assumptions that would affect approved budget policies?

Notes: The governor does not publish a mid-year review of changes in economic assumptions.

The closest such report would come from the Hawaii Council on Revenues. The nonpartisan, unpaid group of seven economists and business executives falls under the state Tax Department. They provide long- and short-term forecasts of the state’s economy. By law, what the group reports has to be considered by the governor and lawmakers in determining state expenditures, enacting any revenue-related legislation, and preparing the state’s budget.

The group prepares forecasts on state revenues for each fiscal year as well as quarterly estimates that include all taxes and income owed to the state. Its revenue estimates and any revisions are reported every June 1, September 10, January 10, and March 15 to the governor and Legislature. Those can be accessed here: http://state.hi.us/tax/a9_1cor.htm

Sources:

• Nanea Kalani, Money Reporter-Host, Honolulu Civil Beat, 9/2/11, interview at Honolulu Civil Beat office.

Score: 0%

Scoring criteria: These are the scoring criteria for this question.
Yes: A YES score is earned if the state executive publishes a mid-year review of the budget.
No: A NO score is earned if no such document is published.

6. Does the state executive issue a year-end report summarizing the financial situation at the end of the fiscal year?

Notes: No such year-end report is published by the governor.

The closest such report would come from the Hawaii Council on Revenues. The nonpartisan, unpaid group of seven economists and business executives provides long- and short-term forecasts of the state’s economy. By law, what the group estimates has to be considered by the governor and lawmakers in determining state expenditures, enacting any revenue-related legislation, and preparing the state’s budget.

The group prepares forecasts on state revenues for each fiscal year as well as quarterly estimates that include all taxes and income owed to the state. Its revenue estimates and any revisions are reported every June 1, September 10, January 10, and March 15 to the governor and Legislature. Those can be accessed here: http://state.hi.us/tax/a9_1cor.htm

Sources:

• Honolulu Civil Beat, Nanea Kalani, https://civilbeat.org/topics/council-on-revenues/

Score: 0%

Scoring criteria:
These are the scoring criteria for this question.
Yes: A YES score is earned if the state executive publishes a year-end budget report.
No: A NO score is earned if no such document is published.

7. Does the state publish an annual audit report, produced by an entity independent from the executive, which covers the activities undertaken by the executive during the fiscal year?

Notes: The state does publish an annual audit report conducted by an entity independent of the executive. It is called the Comprehensive Annual Financial Report. However, the report’s release has been delayed for the last two fiscal years. As of January 2012, the most recent CAFR available is the fiscal 2010 report: http://hawaii.gov/dags/accounting-division/Annual%20Financial%20Report

Sources:

• Nanea Kalani, Money Reporter-Host, Honolulu Civil Beat, 9/2/11, interview at Honolulu Civil Beat office.

• State of Hawaii, Comprehensive Annual Financial Report, http://hawaii.gov/dags/accounting-division/Annual%20Financial%20Report

Score: 100%

Scoring criteria: These are the scoring criteria for this question.
Yes: A YES score is earned if the state publishes an annual independent audit report.
No: A NO score is earned if no such document is published.

8. Does the state publish a citizens budget containing non-technical budget information that is accessible to a broader audience?

Notes: The state does not publish a document like this.

Sources:

• Nanea Kalani, Money Reporter-Host, Honolulu Civil Beat, 9/2/11, interview at Honolulu Civil Beat office.

Score: 0%

Scoring criteria: These are the scoring criteria for this question.
Yes: A YES score is earned if the state publishes a citizens budget.
No: A NO score is earned if no such document is published.

9. Do reports issued by the state contain information on tax expenditures (information on on tax credits, deductions, and exemptions that reduce state revenue)?

Notes: The Hawaii Tax Review Commission convenes every five years and puts together a report containing a summary of all tax deductions, tax exemptions, tax credits. The commission analyzes the state’s tax code for fairness and makes recommendations to the state Legislature.

There’s an archive of the commission’s recent recommendations here: http://state.hi.us/tax/a9_2trc.htm.

Sources:

• Nanea Kalani, Money Reporter-Host, Honolulu Civil Beat, 9/2/11, interview at Honolulu Civil Beat office.

Score: 100%

Scoring criteria: These are the scoring criteria for this question.
Yes: A YES score is earned if budget documents issued by the state contain information on tax expenditures.
No: A NO score is earned if no such document is published.

Discussion: