Governor Calls for 10% Spending Reduction

By Wendy Osher

Gov. Neil Abercrombie. File photo by Wendy Osher.

Governor Neil Abercrombie is calling for a 10 percent spending reduction for all departments to meet immediate shortfalls projected over the next three months.  He also announced plans to raid the Rainy Day, Hurricane Relief and special funds.  The comments were made in response to a downward forecast yesterday from the Council on Revenues.

The Hawaii Council on Revenues revised its forecast yesterday saying revenue will decline by 1.6 percent.   That’s down from the 0.5 percent growth what they had projected in an earlier forecast.

“Our administration has put forward a plan that will get us out of the immediate fiscal shortfall while moving Hawaii toward a New Day,” said Gov. Abercrombie.  “We understand the challenges facing the state and we are being conservative as we work with the State Legislature to pass a budget that will get the job done,” he said.

The governor said that for future years, the plan his administration put forward in February still stands.  “Our plan will add $1.3 billion to Hawaii’s economy–creating jobs and building critical infrastructure like schools, clean energy projects, and public facilities,” said Gov. Abercrombie.  “Our plan restores critical government functions to help local businesses and invest in education. The plan balances the budget by making changes to the tax code, labor savings, and spending cuts,” said the Governor.

“The people will not tolerate the status quo. They want jobs, better schools, energy and food produced here,” said Gov. Abercrombie.