Statement from the Governor and Finance Director on Revised Council on Revenues Forecast

Gov. Neil Abercrombie and Finance Director Kalbert Young today commented on the adjusted forecast from the state Council on Revenues.

abercrombieheaderGov. Abercrombie stated:

“The outcome of today’s meeting is another reason for us to remain optimistic about Hawaii’s strong and vibrant economy.

“Due to sound fiscal management, our financial house continues to be on a solid foundation, with the state concluding fiscal year 2014 with a $664.8 million ending balance, even after contributing $55.5 million to our state reserves via the Hawaii Hurricane Relief Fund and setting aside $100 million for the state’s unfunded liability for retiree health care benefits.

“Hawaii’s economy is running at a sustainable level and regardless of short-term revenue cycles, we are focused on long-term fiscal stability.”

Finance Director Young added the perspective:

“As finance director, my approach is to manage the budget and financial condition across multiple fiscal years. As a result, near-term revenue forecasts are evaluated and incorporated into the state’s six-year plan.

“As in the past, the state’s financial management team is prepared to exert measured controls of the state’s budget to ensure that programs are sustainable through any economic cycle. You will continue to see that exhibited in fiscal year 2015.

“While the fiscal year 2014 revenue collection is down 1.8 percent compared to fiscal year 2013, revenue growth over a five-year period from fiscal year 2009 to fiscal year 2014, has been substantial – about 21.7 percent. The Council’s forecast shows revenue and economic growth of at least five percent a year for the next five years.”

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