General Fund in the Black For First Time in 3 Years

Posted by Maui Now Staff

Kalbert Young. Photo courtesy County of Maui.

The state entered the new fiscal year with a positive general fund balance for the first time in three years.  The positive performance was attributed to a combination of cost savings on public employee health plans, management of state finances, and a retooling of state departments.

The information was used in compiling the administration’s supplemental budget for 2013, that was submitted to the state legislature today.

“One year ago we faced a daunting $1.2 billion deficit forcing us to make tough decisions to rebuild our fiscal situation,” said Governor Neil Abercrombie. “We worked to make the best use of limited resources, asked for certain but temporary sacrifices, and improved efficiency in every department.”

“Now,” the Governor said, “I submit this budget, which is in the black, for the Legislature’s consideration to build on our New Day agenda, which will result in stimulating the economy and creating jobs.”

The Governor joined Budget & Finance Director Kalbert Young this afternoon in announcing the administration’s proposal.

The budget seeks to achieve a healthy surplus, incorporate savings achieved through fiscal management, and fund high-priority programs, and does not rely upon any tax increases, according to the Governor’s office.

The fiscal year (FY) 2012 – 2013 Executive Supplemental Budget includes proposed amendments totaling $119.9 million, and $85.9 million in savings.  The total net request for general funds totals an estimated $34 million.

“While we appear to be turning the corner fiscally, it does not mean that we can ignore our obligations such as paying our bills on time, paying taxpayers what they are owed, nor obviate our responsibility to fund those core services that the public relies upon,” said Young.  “We must continue to be fiscally prudent in our management of funds and expenditure of monies,” he said.

The Governor’s Budget proposes to restore $174 million to the Hurricane Relief and Rainy Day funds during the current biennium.

The Budget also includes additional Capital Improvement Projects (CIP) to address critical infrastructure needs that are shovel-ready.

“We now have a clear understanding of our finances and have established unprecedented collaboration to initiate projects that have immediate impact and solve various issues including homelessness, education, and social services,” said Gov. Abercrombie.

The Executive Supplemental Budget can be viewed in greater detail at http://hawaii.gov/budget.

*** Information courtesy Office of the Governor.