Council on Revenues Raises Tax Revenue Projections

By Sonia Isotov

Yesterday, at their quarterly meeting, the Council on Revenues (COR) projected an increase in tax revenue collections for current and upcoming fiscal years.

According to several Honolulu news outlets, Council Chairman Richard F. Kahle Jr. reportedly said that the Council raised its growth forecast for the current fiscal year, which began July 1, to 14.5%, which is an increase from the previous forecast of 11%. He also said that the council is forecasting growth of 6.5% for fiscal year 2013, a slight increase from the previous forecast of 6 percent, he said.

In response, Governor Neil Abercrombie issued a statement acknowledging the economic challenges and expressing his confidence that the Council’s actions can be accommodated under the state’s current financial plan.

“The continued uncertainty in the economy, as reflected in today’s outlook from the Council on Revenues – and recent forecasts from the University of Hawai’i Economic Research Organization and state Department of Business, Economic Development, and Tourism – underscores federal government instability and concerns about the strength of foreign economies. My Administration has put in place strategic plans that account for necessary revenue adjustments,” said Governor Neil Abercrombie, in a written statement.

The Governor also expressed the need for Hawaii to continue to execute sound fiscal policies that will enable economic growth that addresses financial challenges, cares for the environment, invests in people, and creates the good jobs that will keep future generations here in Hawai’i.

“We need to continue forging ahead with our administration’s plan to spark immediate job growth through public works projects; build a sustainable economy in Hawai’i including in clean energy, food security and broadband; and carefully manage our tax dollars,” said Governor Abercrombie.