CAFR: State Pension Debt Grows faster Than Tax Revenues
KGI: …General fund revenues were $179.0 million, or 2.4 percent, more than expected.
Most of that total came in the form of corporate and individual income taxes, which generated over $155 million more than what was projected by the state’s budget.
Inheritance and estate taxes, along with government charges for services and debt service reimbursements, also contributed to that surplus, each coming in $10 million over budget.
But the state still spent about $2 billion more than it generated in fiscal year 2018, and its overall net position dropped by $718.4 million dollars over the course of the fiscal year, in spite of a $326 million increase in revenue generated mostly by airport and harbor fees.
The largest expenses were for education, welfare, health, general government, public safety and highways. But according to the report, the decrease in net position is primarily attributed to increased postemployment benefits and pension liabilities.
The state’s postemployment benefit liabilities increased $145 million when a Governmental Accounting and Standards Board rule was amended.
And at the beginning of the fiscal year, the operations of Maui Memorial Medical Center, Kula Hospital and Lanai Community Hospital were transferred from HHSC to Kaiser Permanente resulting in a $250.7 million transfer of net pension liability to the state….
read … Economic indicators remain strong
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State Releases Comprehensive Annual Financial Report (CAFR) for FY 2018
News Release from DAGS, December 19, 2018
HONOLULU – The Department of Accounting and General Services (DAGS) has released the Comprehensive Annual Financial Report (CAFR) for the fiscal year ending June 30, 2018. The December 14, 2018 issuance of the report is significantly earlier than prior submittals and in line with the Department's overall commitment to financial transparency.
"Many state agencies, employees, and auditors worked effectively together to complete the CAFR much earlier than previous years," said Governor David Ige.
"Accelerated completion of the CAFR reflects the State's ongoing commitment to transparency and timely financial reporting," said State Comptroller Roderick Becker.
During FY 2018, the State of Hawaii implemented Government Accounting Standards Board (GASB) Statement No. 75 (Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions) which resulted in the restatement of the State's FY 2017 Government-Wide financial statements to reflect the reporting of net Other Postemployment Benefits (OPEB) liability in accordance with Statement No. 75. The adoption of the new standard had no impact on the State's Governmental Fund financial statements which continue to report expenditures in the amount required by state law.
The State's net position decreased by $718.4 million during FY 2018 primarily due to decrease in the net position of governmental activities and increase in net position of Unemployment Compensation Fund, Airports, Harbors, and Nonmajor Proprietary Funds. Approximately 58.9% of the State's total revenues came from taxes, while 26.3% were derived from grants and contributions, including federal assistance. Charges for various goods and services comprised 16.3% of total revenues. Expenses for the State covered a wide range of services, the largest being for higher and lower education, welfare, health, general government, public safety, and highways.
The State of Hawaii's CAFR reports have been recognized by the Government Finance Officers Association (GFOA)'s Certificate of Achievement award for conformance with the highest standards for preparation of state and local government financial reports.
The FY 2018 CAFR can be seen at: http://ags.hawaii.gov/accounting/annual-financial-reports/