Council on Revenue Forecasts 3%, $43.6M Tax Revenue Growth

Gov. Neil Abercrombie. File photo by Wendy Osher.

By Sonia Isotov

The State Council on Revenues yesterday announced an increase in the projection for collective tax revenue growth for fiscal year 2011 from 2% to 3% or $43.6 million.  

In order for the 3% rate of growth to be actualized in the current fiscal year, revenues must reflect a 7% rate of growth for the remaining 7 months in the fiscal year.

Governor Neil Abercrombie last night acknowledged the projected growth by reaffirming his Administration’s efforts towards economic recovery.

“Today’s projections by the Council on Revenues do not lessen the financial hardships that our families and businesses face right now,” Governor Abercrombie said.  “This Administration will remain focused on economic recovery by creating jobs and restoring government services.  We will achieve this by working together with lawmakers, business and community leaders.”

Interim Budget and Finance Director Kalbert Young, and former a two-mayors Finance Director for Maui County, added, “The Council on Revenues’ advisement is a positive sign that the overall State economy is rebounding.  We must remain cautiously optimistic and hope that these initial signs are improvements that will be sustained in the longer term.  The State still has significant challenges and issues to deal with in the near term and very significant fiscal and financial problems to address in the longer term.”