Friday, March 29, 2024
Hawai'i Free Press

Current Articles | Archives

Tuesday, May 12, 2020
We can’t turn back the clock, and for some policies we don’t want to
By Grassroot Institute @ 8:01 PM :: 3092 Views :: Hawaii State Government, Taxes, COVID-19

We can’t turn back the clock, and for some policies we don’t want to

by Melissa Newsham, Grassroot Institute, May 12, 2020

It was just over a year ago that the Grassroot Institute of Hawaii produced a report stating:

“Hawaii’s state budget does not have the extra cushion to deal with a large recession, if one should hit, so lawmakers should reign in spending and build up a financial reserve, rather than dig deeper into taxpayer pockets.”[1]

That statement demonstrated either the Grassroot Institute’s impressive psychic abilities or merely the reality of the state’s unsustainable spending practices.

At the end of fiscal 2016, the state boasted a surplus of about $1 billion. But instead of protecting that surplus to be used in case of an economic emergency, our lawmakers used it as an excuse to overspend.

Now, thanks to the economic emergency that has actually occurred — because of the coronavirus crisis and the state-ordered lockdown — the institute is estimating the state deficit for fiscal year 2021 could grow to between $710 million and $1.8 billion.

Had our lawmakers taken the institute’s advice in recent years to reduce spending and build up a cash reserve, rather than depleting it on discretionary items, the state would have been better positioned to address the economic crisis we now are dealing with.

Unfortunately, there is no way for the state to turn back the clock and change how it did things, but there are many steps that could be taken to aid economic recovery in the future.

Aside from cutting government payroll costs, our governor and legislative leaders should create a new, stress-tested financial plan that excludes any new taxes or tax increases and eliminates spending on discretionary projects. This would also be a good time to implement a spending cap with teeth, to help limit government spending in the long-term.

State and county lawmakers simply must stop relying on Hawaii’s taxpayers and private sector to bear the burden of their irresponsible budgeting and spending practices.
__________

[1] Keli’i Akina, Joe Kent and Malia Blom Hill, “State of the State Budget 2020,” Grassroot Institute of Hawaii, March, 2019

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Moms for Liberty

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT