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



(b)  For the University of Hawaii, when the
director of finance determines at any time that the probable receipts from
taxes or any other sources for any appropriation will be less than was
anticipated, and that consequently the amount available for the remainder of
the term of the appropriation or for any allotment period will be less than the
amount estimated or allotted therefor, the director shall advise the governor
of the situation, and the governor shall redetermine the allotment ceiling for
the affected source or sources of funding pursuant to section 37-34, and shall
advise the university and make a public declaration ten days prior to the
effective date of the redetermination.  The university, not more than twenty
days after the governor's notification, shall submit revised estimates
consistent with the governor's redetermination to the director of finance. 
Otherwise, the director of finance shall modify, amend, or reduce any allotment
of the university to comply with the governor's redetermination; provided that
no reduction shall reduce any allotted amount below the amount required to meet
valid obligations or commitments previously incurred against the allotted
funds.



(c)  Prior to the implementation of any
reduction in allotment proposed by the director of finance or the governor
pursuant to subsection (a) or (b), in which the sum of the reductions exceed
2.5 per cent of the total general fund appropriation made by the legislature in
any 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 senate
committee on ways and means and the house of representatives committee on
finance, 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 L
1992, c 294, §9; am L 1994, c 281, §§4, 8; am L 1995, c 11, §21; am L 1996, c
285, §2]