Council on Revenues Lowers Economic Forecast

Paul H. Brewbaker, Ph.D., Council on Revenues chair. Photo courtesy of Hawaii News Now.

By Sonia Isotov

The Council on Revenues lowered its revenue forecast for 2012 fiscal year yesterday by 3 percentage points since its earlier estimate in September 2011.

The Council projected 11.5% revenue growth for fiscal year 2012, which is down from its earlier projection of 14.5%.

Last month, Governor Neil Abercrombie submitted his supplemental budget, which reflected a conservative approach in the event projections fell.

“The core of our supplemental budget remains solid due in large part to the administration’s strong financial management practices and $85 million in savings that were realized over the last year. These new projections reflect the soundness of recapitalization of the Rainy Day and Hurricane Relief funds this year,” said Governor Neil Abercrombie, in a written statement, following the release of the Council’s report yesterday.

“We will work with the Legislature as the supplemental budget session begins so that we continue to move forward on a positive track. We’ll await the next Council projection as the Legislative session proceeds.”

The Council on Revenues is an agency of the government attached to the Hawaii State Department of Taxation for administrative purposes. The council prepares revenue estimates of the state government for each fiscal year of the six-year state program and financial plan. The Council reports its latest revenue forecast to the governor and the legislature on June 1, September 10, January 10, and March 15 of each year.