Saturday, May 18, 2024
Hawai'i Free Press

Current Articles | Archives

Wednesday, December 18, 2019
Grassroot: Ige’s fiscal 2021 budget ‘unsustainable’ 
By Grassroot Institute @ 5:45 PM :: 2540 Views :: Hawaii State Government

Gov. Ige’s fiscal 2021 budget ‘unsustainable’ 

The Grassroot Institute of Hawaii warns against drawing down the state’s surplus

News Release from Grassroot Institute

HONOLULU, Dec. 18, 2019 >> Gov. David Ige’s proposed $15 billion budget for fiscal 2021 is headed toward a fiscal cliff because it would draw on the state’s financial reserves, leaving the state unprepared to deal with a recession, according to Keli’i Akina, president and CEO of the Grassroot Institute of Hawaii.

“Gov. Ige shouldn’t balance the budget by spending away the surplus,” Akina said. “Instead he should focus on reining in spending and building up a financial reserve.”

Ige’s budget, released earlier this week, shows a plan of spending more than it takes in, overspending by $288 million in fiscal 2021, $172 million in fiscal 2022, and $39 million in fiscal 2023.

Ige plans to balance that out by drawing down the state’s surplus, from $606 million in fiscal 2020 down to $107 million in fiscal 2023. 

In fiscal 2017, the state’s financial reserves totaled more than $1 billion.

“If the economy dips, as it did during the Great Recession of 2007-2008, that could leave the state with a nearly $4 billion deficit by 2025,” Akina said.

Akina noted that because of the economic downturn, Hawaii experienced an average 0.1% annual reduction in tax revenues from fiscal 2007 to fiscal 2011. If the state were to experience a similar reduction in tax revenues starting in fiscal 2021 without trimming its spending, this would result in a deficit of $597 million in fiscal 2022 and $3.8 billion by fiscal 2025, according to a stress test by the Grassroot Institute of Hawaii.

“The governor’s budget is unsustainable,” Akina said. “Hawaii policymakers should be focusing on living within our means and saving for a rainy day. 

“They could do that by restricting spending, lowering taxation, partnering with the private sector, reducing regulations and reforming the public pension system. Doing so could put the state on a better financial track, jump-start Hawaii’s economy and have the happy benefit of lowering the cost of living for Hawaii residents.”

###

Related: Ige Unveils Supplemental Budget--Massive Spending Hike

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

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 Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

MentalIllnessPolicy.org

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii

Obookiah

OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

RailRipoff.com

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

SenatorFong.com

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii