Projected state
revenues jumpAn extra $35.9 million in
anticipated income brings calls
for more funding for education
Modest growth in the economy will increase the projected size of the state treasury, according to the latest forecast from the Council on Revenues.
Michael Sklarz, council chairman, said state revenues for the 2004 fiscal year should rise $35.9 million above the last council estimate on May 16.
The increase to growth of about 1 percent is due to new federal tax benefits and a booming construction and real estate market, Sklarz said.
"Construction and building permits are up more than 40 percent in 2003, and everybody seems to be very positive about construction," Sklarz said.
The council's projections reflect an improving economy and the Lingle administration's discipline in keeping spending in line, said Georgina Kawamura, director of the Department of Budget & Finance.
The moderately improved projection, however, prompted a new round of calls from Democrats for Lingle to release more money for state school and university projects and operations.
House Speaker Calvin Say (D, Palolo) said the new figures show the state has enough money to restore education cuts.
Republican Lingle had previously said the Democrats passed an unbalanced budget. Lingle had projected a $152 million shortfall in the state's two-year, $7.5 billion budget, based on the council's May projection.
"The council's projections show that the governor was wrong when she accused us of passing an unbalanced budget," said House Majority Leader Scott Saiki (D, Moiliili-McCully).
Kawamura questioned the Legislature's commitment to strengthening public education when it approved a school maintenance budget of $35 million, far less than the $120 million requested by the administration.
Yesterday's Council on Revenues meeting was not publicized, and a notice on the Tax Department Web site listed the meeting for next week.
According to state law, the time and date of meetings of state boards and commissions are supposed to be publicly posted six days in advance.
