§37-37  Reduction.  (a)  Except asprovided in subsection (b), when the director of finance determines at any timethat the probable receipts from taxes or any other sources for anyappropriation will be less than was anticipated, and that consequently theamount available for the remainder of the term of the appropriation or for anyallotment period will be less than the amount estimated or allotted therefor,the director shall, with the approval of the governor and after notice to thedepartment or establishment concerned, reduce the amount allotted or to beallotted; provided that no reduction reduces any allotted amount below theamount required to meet valid obligations or commitments previously incurredagainst the allotted funds.

(b)  For the University of Hawaii, when thedirector of finance determines at any time that the probable receipts fromtaxes or any other sources for any appropriation will be less than wasanticipated, and that consequently the amount available for the remainder ofthe term of the appropriation or for any allotment period will be less than theamount estimated or allotted therefor, the director shall advise the governorof the situation, and the governor shall redetermine the allotment ceiling forthe affected source or sources of funding pursuant to section 37-34, and shalladvise the university and make a public declaration ten days prior to theeffective date of the redetermination.  The university, not more than twentydays after the governor's notification, shall submit revised estimatesconsistent with the governor's redetermination to the director of finance. Otherwise, the director of finance shall modify, amend, or reduce any allotmentof the university to comply with the governor's redetermination; provided thatno reduction shall reduce any allotted amount below the amount required to meetvalid obligations or commitments previously incurred against the allottedfunds.

(c)  Prior to the implementation of anyreduction in allotment proposed by the director of finance or the governorpursuant to subsection (a) or (b), in which the sum of the reductions exceed2.5 per cent of the total general fund appropriation made by the legislature inany fiscal year, the director of finance shall notify the president of the senate,the speaker of the house of representatives, and the chairpersons of the senatecommittee on ways and means and the house of representatives committee onfinance, respectively, of the director's intent. [L Sp 1959 1st, c 12, pt of§3; Supp, §35-25; HRS §37-37; am L 1986, c 320, §4; am L 1989, c 370, §2; am L1992, c 294, §9; am L 1994, c 281, §§4, 8; am L 1995, c 11, §21; am L 1996, c285, §2]