Tax revenue State tax revenues in the current fiscal year should grow by 6.1 percent over last year and continue growing at about the same rate over the next several years, a panel of economists predicted yesterday.
growth pegged
at 6% for state
By Bruce Dunford
Associated PressThe forecast by the state's Council on Revenues is based off the 2.5 percent decline in revenues in the fiscal year that ended June 30.
It means the governor and the Legislature in drafting next year's state budget will have about $180 million more than was spent last year after the cuts made following the economic downturn after the Sept. 11 terrorist attacks.
The council projected continued growth over the next half-dozen years in the range of 5 and 6 percent. It's essentially the same forecast as made last year before the terrorist attacks put a big dent in the local economy.
Council Chairman Michael Sklarz said the council's optimistic revenue forecast is based on signs of a recovered local economy, including real estate sales, construction and recovery in the tourist industry.
Tax Foundation of Hawaii President Lowell Kalapa, a former member of the council, said he agrees with the forecast, but said it could be spoiled by labor disputes involving West Coast ports and Waikiki hotels.
In a related area, Gov. Ben Cayetano yesterday criticized Democratic gubernatorial candidate D.G. "Andy" Anderson's repeated referral to state government being "flat broke and on the verge of bankruptcy."
Cayetano said Anderson's comments demonstrate he is uninformed about the state's fiscal situation and out of touch with what's occurring across the nation.
"Hawaii has received much acclaim for managing so well in a tough economic environment, particularly given our tourist-based economy," Cayetano said. "While 16 states are raising taxes, Hawaii is the only state in the entire nation to cut taxes since Sept. 11."
