The state Council on Revenues has lowered the state of Hawaii's revenue forecast for the 2014 fiscal year to a 3.3 percent growth. In September 2013, the council had predicted that the islands would see a 4.1 percent growth for the 2014 fiscal year. This difference of 0.8 percent, equates to an estimated $43 million loss to the state. However, the council has still kept their 7.4 percent revenue growth prediction for the 2015 fiscal year, stating that an improving construction market would boost Hawaii's economy and tax revenue.
State lawmakers use the revenue projections as guidelines when they draft their budgets proposals. Governor Neil Abercrombie had previously requested an increase of $283.8 million, or $12.2 billion supplemental budget, for the 2015 fiscal year. However, with these lower numbers for 2014, state House and Senate leaders have stated that they will have to move cautiously and reexamine the numbers. Representative Sylvia Luke, who is the chairwoman for the House Finance Committee, stated, "When we are getting ready to prepare for the budget and session, this is what we've been kind of hinting at. The economic growth is not going to last forever."
Source: Honolulu Star Advertiser, 1-8-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
