The state of Hawaii’s Council on Revenues has increased their forecast predictions and now believe that state tax collections will grow by 6.7 percent during this fiscal year. Previously, when the council met in January, they had predicted that tax collections would increase by 5.1 percent, but new data showing strong economic growth in the private-sector has changed their estimates. During the 2014 fiscal year, revenues are expected to grow another 7.3 percent. The council does warn that federal budget cuts due to sequestration would offset this increase.
Governor Neil Abercombie has set aside a total of $25 million for each of the fiscal two fiscal years to help mitigate the impact of sequestration. Even with the increased forecasts provided by the Council of Revenues, state House and Senate leaders promised the public that they will be cautious when planning their upcoming budget. State Representative Sylvia Luke stated, “The approach that we have taken is a conservative approach, and that has not changed, and that will not change. I think this is still the time for us to look at the budget in a responsible way, for us to look at what the core services of government (are), and for us to re-evaluate what we’re here for.”
Source: Honolulu Star Advertiser, 3-14-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
