Department of Budget and Finance

State of Hawaii Executive Branch

The State budgets on a biennium basis with the Executive biennium budget submitted to the Legislature for action on odd numbered years and the Executive supplemental budget submitted on even numbered years. The State’s fiscal year runs from July 1st to June 30th. Generally, operating appropriations are effective for a one-year period and any unexpended or unencumbered appropriations lapse at the end of the fiscal year. Generally, capital improvement program appropriations are effective for a three-year period (the fiscal biennium plus an additional year) and any unexpended or unencumbered appropriations lapse at the end of the three-year period.

The Constitution requires that the Governor consider the Council on Revenues’ revenue forecasts in preparing the Executive budget and the Legislature consider the Council’s forecasts in appropriating funds. If the Governor or Legislature does not use the Council’s forecasts, a public statement must be made to that effect along with the reason(s) for not using the forecasts. The Council makes quarterly forecasts that coincide with various phases of the budget preparation and execution process: the September 10th forecast is used by the Executive in preparing the Executive budget; the January 10th forecast is used by the Legislature in planning for appropriations during the legislative session; the March 15th forecast is used by the Legislature in making appropriations; and the June 1st forecast is used by the Executive in budget execution.

The following is the general timetable for preparation and execution of the State’s Executive Branch budget. Please note that departments usually begin their budget planning (either informally or formally for the Department of Education and University of Hawaii) well in advance of issuance of the budget preparation instructions by the Department of Budget and Finance.

Timeframe	Activity Undertaken
Apr:	Program structure update for upcoming biennium issued by DB&F (even numbered years)
Late Jun:	Program structure updates due from departments (even numbered years)
Late Aug-early Sep:	Budget preparation instructions issued by DB&F
Sep 10th:	Deadline for Council on Revenues quarterly general fund revenue forecast
Early-mid Oct:	Departments submit budget requests to DB&F for review
Early-mid Nov:	DB&F transmits initial budget recommendations to departments & conducts budget appeals
Late Nov:	DB&F transmits revised budget recommendations to departments; departments may appeal DB&F recommendations to Governor
Early-mid Dec:	Executive budget decisions are finalized & transmitted to departments
Mid Dec:	Executive budget documents are prepared
30 days to start of session:	Executive Biennium Budget (odd numbered years) or Executive Supplemental Budget (even numbered years) & Variance Report submitted to Legislature
Beginning of Jan:	Legislative money committees start conducting departmental budget hearings
Jan 10th:	Deadline for Council on Revenues quarterly general fund revenue forecast
3rd Wed in Jan:	Start of regular legislative session; Executive budget bill submitted to Legislature
1st Working Day of Week	Traditionally Governor’s State of State Address & deadline to submit Executive’s legislative package
Following Start of Session:
Mar 15th:	Deadline for Council on Revenues quarterly general fund revenue forecast
End of Apr-beginning of May:	End of regular legislative session (60th session day excluding recesses)
35th day from end of session:	Deadline for Governor to give notification of possible bill vetoes
45th day from end of session:	Deadline for Governor to veto bills or automatically becomes law
Jun 1st:	Deadline for Council on Revenues quarterly general fund revenue forecast
Early-mid Jun:	Budget execution policies issued by Governor; appropriation warrants issued by DAGS