Tuesday, July 07, 2020
Hawai'i Free Press

Current Articles | Archives

Friday, May 29, 2020
Legislators Short $2B: "We are going to have to look for strategic cuts"
By News Release @ 7:56 PM :: 1229 Views :: Hawaii State Government, Labor, COVID-19

Legislature's Budget Committee Chairs React to Council on Revenues Forecast

News Release from House Democratic Caucus, May 29, 2020

Honolulu, Hawaiʻi – Senate Ways and Means Committee Chair Donovan M. Dela Cruz and House Finance Committee Chair Sylvia Luke said today’s financial projections by the State of Hawai‘i Department of Taxation Council on Revenues were about what they expected during this coronavirus damaged economy. 

Based on the Council’s projections and using the federal CARES Act funds, strategic budget cuts and possibly federal loans, Dela Cruz and Luke believe that the state can weather the economic downturn without imposing school furloughs, statewide pay cuts or cuts to critical social services.

(Clue: It’s not June 2 yet.)

“The Council on Revenues said there are lots of unknowns is the economy, like when the 14-day quarantine will be lifted,” said Representative Luke. “They are predicting a downturn followed by a sharp increase.”

The Council projected a 7% decline in the economy for fiscal year 2020, a 12% decline in fiscal year 2021, followed by a 12% percent increase in fiscal year 2022 and annual increases thereafter.

The Legislature has appropriated about $562.5 million in CARES Act funds to the counties to provide COVID-19 response support, including rent subsidies, direct food aid and business support to residents in need. Of the $1.2 billion total, $635 million of the CARES Act money will be moved into the State's Emergency and Budget Reserve Fund or "Rainy Day" fund to hold until a decision can be made in June how to best use the funds.

"We are going to have to look for strategic cuts so we can ensure that we can still provide assistance for basic needs.  We have a combination of options to consider," said Senator Dela Cruz.  "The Governor will most likely suggest cuts based on the Council on Revenues projections.  This is going to have to be a group effort and we will all need to work together to develop a proposal that we can all support."

The budget committee Chairs said there are still may unknowns in the economy and the months ahead are critical. It is not yet known if the U.S. Congress will provide additional support to the states and they are very concerned about maintaining the unemployment fund, especially after federal support expires in July. Federal loans are available to states to cover unemployment funding, but that decision will have to wait until the terms of the loan are made clear.



May 24, 2020: Saiki: When Legislature Reconvenes, We Will Abandon Plan to Convert CARES Money into HGEA Payroll and Instead Apply it to Unemployment Compensation

PDF: COR Agenda May 28, 2020

SA: Hawaii budget shortfall now projected to be $2.3 billion

CB: Experts: State Budget Hole Much Deeper Than Predicted

HPR: State Tax Revenue Projected To Drop By Over $2 Billion As A Result of Pandemic

HNN:  Newest projection: State tax revenues will drop by a jaw-dropping $2.25B this fiscal year


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


808 Silent Majority

808 State Update AM940


ACA Signups Hawaii



Alliance Defending Freedom

Aloha Life Advocates

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

American Mothers of Hawaii



Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Audit The Rail

Ballotpedia Hawaii

Better Hawaii 

Blaisdell Memorial Project

Broken Trust 

Build More Hawaiian Homes Working Group

CAFR Hawaii

Castaway Conservative

Children's Alliance Hawaii

Children's Rights Institute


Christian Homeschoolers of Hawaii

Citizens for Recall

Cliff Slater's Second Opinion

Coffee Break

CSIS Pacific Forum

DAR Hawaii


DVids Hawaii

E Hana Kakou Kelii Akina

E Māua Ola i Moku o Keawe

Farmers For Choice Hawaii


Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Get Off Your Butts!

God, Freedom, America

Grassroot Institute


Hawaii Aganst Assisted Suicide

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crime Victims' Rights

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defending Marriage

Hawaii Defense Foundation

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Firearm Community

Hawaii Fishermen's Alliance

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii Meth Project

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Right to Life -- Big Island

Hawaii Right to Life -- Oahu

Hawaii Shield Law Coalition

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation

HI Coalition Against Legalized Gambling



Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Homeless Crisis

Honolulu Navy League

Honolulu Traffic

Horns of Jericho Blog

House Minority Blog

House Republican Caucus YouTube


Hump Day Report

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes


Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group


Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii



National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Hawaiian

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii


OHA Lies

Opt Out Today


Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons 

Pro-GMO Hawaii



Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii


SIFE Remington

SIFE W. Oahu 

Sink the Jones Act

Smart About Marijuana--Hawaii

St Marianne Cope

State Budget Solutions Hawaii

State Policy Network

Statehood for Guam

Tax Foundation of Hawaii

The Harriet Tubman Agenda

The Long War Journal

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Truth About Trade & Technology - Hawaii

UCC Truths

Union Members Know Your Rights

US Tax Foundation Hawaii Info

Valor in the Pacific

VAREP Honolulu


West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii