The Ige-Abercrombie Agenda Isn't Working: Economy Again Falls Short Of Expectations

Hawaii Council On Revenues Downgrades Economic And Fiscal Forecast For The Fifth Time In A Row

News Release from Hawaii Republican Party

HONOLULU (September 5, 2014) - Pat Saiki, State Chair of the Hawaii Republican Party, released the following statement in response to the Hawaii Council on Revenues again downgrading their economic forecast:

"This report makes it clear that four more years of the Ige-Abercrombie policy agenda will only continue to take Hawaii in the wrong direction," said Saiki. "It is obvious new leadership is needed in order to create quality jobs and help lower the cost of living for families in Hawaii."

# # #

BACKGROUND:

The Hawaii Council On Revenues Now Forecasts The State Will Have $100 Million Less In Tax Revenues Because Of A Slowing Economy. "The state will have more than $100 million less than expected to fund government programs and pay public workers over the next year, based on the Hawaii Council on Revenues’ latest forecast. The seven members had projected 5.5 percent growth for fiscal 2015, which started July 1, but they downgraded their general fund revenue forecast to 3.5 percent after a lengthy discussion Thursday. The governor’s office and Legislature rely on the estimates to prepare the state’s overall $12 billion operating budget." (Nathan Eagle, "Hawaii Takes a $100 Million-Plus Hit as Council Downgrades Revenue Forecast," Honolulu Civil Beat, 9/4/14)

• "In Hawaii, the lower economic forecast from the Council on Revenues means a potential funding crunch for the state government. The council, a collection of economists from state, private sector and academe, whose forecast is the official basis of the must-be-balanced state budget, changed its growth forecast from 5.5 to 3.5 percent. That works out to roughly $100 million that state officials thought they'd get but probably won't. One month does not a trend make, and a forecast isn't reality, merely an educated guess of what reality will be later on. But there have been a number of economic indicators this year to suggest anemic growth, including slow hiring and weak consumer spending." (Howard Dicus, "Slow economic growth for Hawaii, slow hiring pace for nation," HawaiiNewsNow, 9/5/14)

• "The council’s trend of downgrading its forecast started a year ago. The council lowered its forecast in September 2013, then again at its meetings in January, March and May when the growth rate dipped below zero to negative 0.4 percent." (Nathan Eagle, "Hawaii Takes a $100 Million-Plus Hit as Council Downgrades Revenue Forecast," Honolulu Civil Beat, 9/4/14)