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.