Update: Governor Sees Revenue Forecast as Sign of Strong Economic Recovery

News Release from No Hawaii Beverage Tax May 30, 2013

We wanted to share some encouraging projections coming out of the state Council on Revenues regarding Hawaii's economic outlook. 

Governor Abercrombie shared the good news in a statement this week:

Our economy is strong and appears to be getting stronger. Hawaii continues to lead the U.S. amongst states with significant revenue growth possibilities. We must remember that the Council predictions relate to tax revenue growth. We expect to see continued improvement in the construction industry, real estate market, agriculture and small business activity as well the hospitality industry. All of our local industries will benefit from our improving economy.

This comes on the heels of a report from February showing climbing revenues and strong growth in the hotel industry. Hawaii hotels collected $318 million in the month of February, setting a record and showing yet another sign that Hawaii’s economy is on the rebound after several tough years.  

In addition, lawmakers decided not to raise the hotel room tax this year. 

Last week in California, a tax on sweetened beverages failed to advance in the Legislature, another sign that lawmakers across the country are cautious about imposing discriminatory taxes amid the fragile economic recovery. 

Thank you for your ongoing support. We will continue to keep an eye on issues impacting Hawaii's consumers and small businesses. 

---30---

Governor Sees Council on Revenues Forecast as Sign of Strong Economy

News Release from Office of the Governor May 28, 2013

HONOLULU – Gov. Neil Abercrombie today responded to the state Council on Revenues revised forecast reaffirming its previous General Fund tax revenue projection for the current fiscal year and increasing its projections for the next three fiscal years. For the upcoming biennium, tax revenue is projected to grow 8 percent in 2014 and then 7 percent in 2015. Those compounded increases would mean $86 million more revenue over the next two years.

Gov. Abercrombie stated:

"Our economy is strong and appears to be getting stronger. Hawaii continues to lead the U.S. amongst states with significant revenue growth possibilities. We must remember that the Council predictions relate to tax revenue growth. We expect to see continued improvement in the construction industry, real estate market, agriculture and small business activity as well the hospitality industry. All of our local industries will benefit from our improving economy.  "I am very optimistic about the prospects for our local economy. My Administration has fostered increased activity in our economy and that translates into increased tax revenue due to that activity. I think the Council forecast supports the proposition that economic activity is strong and improving. These are good signs to support optimism for our residents and businesses."

# # #

SA: Building seen as vim for economy

PBN: Hawaii Council on Revenues raises forecasts for 2014, ’15