Fiscal Note and Hawaii

Fiscal note is a mechanism that legislators and constituents rely on to grasp the financial impacts of enacting a bill.

Precisely, it estimates the costs, savings, revenue gain & loss resulting from the implementation of proposed legislation.

Fiscal notes help legislators and taxpayers better understand how a bill might impact the state budget as whole, individual agencies and, in some instances, local government.

Fiscal analysts are the ones who assess the financial impact of a proposed legislation. Fiscal note price tag accompanies a bill throughout the legislative process.

Oppositionists claim that the work done by fiscal analysts are redundant since Taxation Department provides estimates on many bills already. Also, estimates provided are vague inasmuch as numbers evolve through the process and they only aim the short-term.

Supporters argue that fiscal notes are especially important when money is tight. In addition, public authorities must ensure greater transparency of legislative process. Taxpayers have the right to request “death by fiscal note” when the costs of a bill is not offset by revenues.

Hawaii is the only state that does not require fiscal notes. In the current legislature process, two bills proposed by Republicans (SB 268 and HB 449) wait for public hearings. Democrats, the great majority on both houses, are reluctant to allow testimonies, though.