Friday, May 30, 2008

Council on Revenues New Projection

The Hawaii Council on Revenues met yesterday and revised their economic projection for fiscal years 2008 and 2009. Mahalo to House Finance for providing the following analysis. In a nutshell:

The legislature assumed that the Council would lower its projection from 3.9% to 3.5% when finalizing the state budget for FY08.

Yesterday, the Council lowered the projection for FY08 even further from 3.9% growth to 3.3%.

Had we stayed at 3.9%, the loss would be $27.5 million. Using 3.5% as the base, the loss is $9.2 million.

The Council projected a downward turn for FY09, lowering the growth from 4.1% to 2.0%. This translates to an anticipated loss of $128.1 million.

As reported in The Advertiser and Star-Bulletin, the five member council was split, with the vote being 3-2. According to sources, members Paul Brewbaker and Rick Kahle voted no and wanted the FY08 adjustment to be even lower.

1 comment:

Vernon said...
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