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Forecast
optimistic
for state

The Council on Revenues
expects Hawaii's growth to
surpass the nation's

---

By Richard Borreca
Star-Bulletin

Optimism continues to be the key word for the state's Council on Revenues, which yesterday held to a 6 percent economic growth rate for this year and pushed up the expected rates for the next six fiscal years.

The numbers are critical because the council sets the amount of money the state expects to collect, which in turn is used to plan the state budget.

Michael Sklarz, council chairman, said after yesterday's meeting that the economic good news was because of an increased feeling of confidence among consumers and businesses in Hawaii.

"You could say we are pretty optimistic about the economy," he said.

The state is expected to continue to collect more money because of a higher inflation rate and higher total personal income, Sklarz explained. Rising home prices, increased construction and a solid tourism economy are all key reasons the economy in Hawaii continues to be strong, he said.

"We are looking at the state economy growing faster than the national economy for the first time in many years," Sklarz said.

The predictions peg the growth rate for 2001 at 5.5 percent and 5.8 percent for 2003. Years 2004-2006 are expected to increase 5.3 percent, and 2007 is predicted to increase by 5.4 percent, according to the council.

Gov. Ben Cayetano and state legislators had expected the growth rate to remain about the same.