Gov. Neil Abercrombie and Finance Director Kalbert Young today commented on the adjusted forecast from the state Council on Revenues.
Gov. Abercrombie stated:
"The administration's budget and six-year financial plan were developed anticipating the likelihood of revenue fluctuations. The result is both the budget and the six-year plan are solid and sound.
"Our budget and financial plan replenishes and builds state reserves, pays down unfunded liabilities and modernizes state technology. Hawaii's economy is running at a sustainable level and contributing to the state's strong fiscal condition. The administration looks forward to working together with the Legislature to continue to build reserves and fund necessary public services and key initiatives, while ensuring our long-term fiscal stability."
Finance Director Young added the perspective:
"The Council on Revenues adjusted forecast is signaling that revenue growth for the state may have peaked, at least for the short term. We continue prudent fiscal management of state finances and resources, ensuring government expenditures are in line relative to the revenue forecast."
"My approach as finance director is to manage the budget and financial condition across multiple fiscal years. As a result, near-term revenue revisions are evaluated and accommodated on a multi-year basis. As in the past, the state's financial management team is prepared to exert measured controls of the state's budget to ensure that programs are sustainable through any economic cycle."