Hawaii state budget and finances

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Hawaii budget and finances
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General information
Budget calendar:
Biennial
Fiscal year:
2015
State credit rating:
AA (as of 2014)
Current governor:
David Ige
Financial figures
Total spending (state and federal funds):
$11.8 billion (estimated for 2014)
Per capita spending:
$8,284 (estimated for 2014)
Total state tax collections:
$6.1 billion (2013)
Per capita tax collections:
$4,324 (2013)
State debt:
$46.1 billion (as of 2014)
Per capita state debt:
$33,111 (as of 2014)
State budgets and finances
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Total state expendituresState debtTax policy in Hawaii
Note: This page utilizes information from a variety of sources. As such, the currency of the information varies somewhat. The information presented on this page reflects the most recent data available as of February 2015.
Between fiscal years 2013 and 2014, total spending in Hawaii increased by approximately $200 million, from $11.6 billion in fiscal year 2013 to an estimated $11.8 billion in 2014. This represents a 1.5 percent increase. The cumulative rate of inflation during the same period was 1.58 percent, calculated using the Consumer Price Indices for January 2013 and January 2014. As of 2014, financial services firm Standard and Poor's had assigned Hawaii a credit rating of AA.[1][2][3]
In fiscal year 2014, total estimated spending in Hawaii amounted to $11.8 billion. Hawaii ranked second in the nation for state debt per capita, which amounted to $33,111.

Spending

Definitions

The information below comes from the National Association of State Budget Officers (NASBO). These spending figures are broken into three broad categories in order to facilitate comparison between the states.[3]

  • State funds: State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
  • Federal funds: Federal funds are "funds received directly from the federal government."
  • Total spending: Total spending is calculated by adding together the totals for state and federal funds.

These figures exclude spending from the sale of bonds.

2014 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2014 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.[3]

Total estimated spending in Hawaii amounted to $11.8 billion, while estimated per capita spending came out to $8,284.

Total estimated state spending, FY 2014 ($ in millions)
State State funds Federal funds Total spending Population Per capita spending
Hawaii $9,612 $2,148 $11,760 1,419,561 $8,284.25
Alaska $8,620 $2,971 $11,591 736,732 $15,732.99
California $140,239 $81,059 $221,298 38,802,500 $5,703.19
Oregon $20,175 $8,090 $28,265 3,970,239 $7,119.22
Washington $25,171 $9,102 $34,273 7,061,530 $4,853.48
Per capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census estimates.[4]
Source: National Association of State Budget Officers

Spending by function

See also: State spending by function as a percent of total expenditures
Breakdown of spending by function in FY 2013
Source: National Association of State Budget Officers

State spending in Hawaii can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2013 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.[3]

While the bulk of Hawaii's budget was dedicated to expenditures labeled as "Other" at 46.5 percent, the next-largest single portion of the budget was dedicated to K-12 education at 15.5 percent.

State spending by function as a percent of total expenditures, FY 2013
State K-12 education Higher education Public assistance Medicaid Corrections Trans-
portation
Other
Hawaii 15.5% 10.9% 0.8% 14.4% 2.0% 9.9% 46.5%
Alaska 13.7% 9.2% 1.1% 12.2% 3.3% 19.5% 41.0%
California 21.4% 6.6% 3.9% 25.1% 5.0% 6.0% 31.9%
Oregon 14.3% 1.1% 0.7% 21.4% 3.9% 6.1% 52.6%
Washington 23.4% 14.3% 0.9% 11.9% 2.7% 8.9% 38.0%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Spending trends

Between 2009 and 2013, the share of Hawaii's budget spent on K-12 education decreased from 21.3 percent to 15.5 percent. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).[3][5][6][7][8]

Spending by function from 2009 to 2013 (as percentages)
Year K-12 education Higher education Public assistance Medicaid Corrections Transportation Other
2013 15.5% 10.9% 0.8% 14.4% 2.0% 9.9% 46.5%
2012 15.6% 11.3% 0.9% 12.3% 2.0% 10.0% 48.0%
2011 15.3% 9.1% 0.9% 15.9% 2.0% 9.2% 47.7%
2010 15.6% 8.8% 0.8% 13.3% 2.0% 9.7% 49.7%
2009 21.3% 11.1% 0.8% 11.3% 2.0% 9.4% 44.2%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Revenues

2013 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Population" and "Per capita revenue" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "Population" and "Per capita revenue" have not been abbreviated.[9]

In 2013 Hawaii's total tax collections amounted to $6.1 billion, while per capita collections came out to $4,324.

State tax collections by source ($ in thousands)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes Total 2013 population Per capita collections
Hawaii N/A $3,932,220 $230,189 $1,735,718 $123,661 $71,105 $6,092,893 1,408,987 $4,324.31
Alaska $99,598 $249,586 $135,720 N/A $630,941 $4,016,966 $5,132,811 737,259 $6,962.02
California $1,982,208 $48,074,580 $8,743,748 $66,809,000 $7,462,000 $112,710 $133,184,246 38,431,393 $3,465.51
Oregon $19,893 $1,369,266 $923,123 $6,260,161 $459,744 $128,700 $9,160,887 3,928,068 $2,332.16
Washington $1,939,883 $14,647,173 $1,359,685 N/A N/A $720,303 $18,667,044 6,973,742 $2,676.76
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
Hawaii tax collections by source in 2013
Source: Tax Policy Center

The table below lists 2013 tax collections by source as percentages of total collections. In Hawaii, sales taxes and gross receipts accounted for the bulk of total tax collections at 64.5 percent.[9]

State tax collections by source (as percentages)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes
Hawaii N/A 64.54% 3.78% 28.49% 2.03% 1.17%
Alaska 1.94% 4.86% 2.64% N/A 12.29% 78.26%
California 1.49% 36.1% 6.57% 50.16% 5.6% 0.08%
Oregon 0.22% 14.95% 10.08% 68.34% 5.02% 1.4%
Washington 10.39% 78.47% 7.28% N/A N/A 3.86%
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

Current fiscal year budget

See also: Historic Hawaii budget and finance information

Fiscal year 2015

DocumentIcon.jpg See budget bill: HB 1700

Hawaii's biennial budget for fiscal years 2014 and 2015 took effect in 2013. Governor Neil Abercrombie announced his supplemental budget request for the 2014-2015 biennium on December 16, 2013. Under the governor's proposal, the operating budget for fiscal year 2014 would have decreased by $53 million, while the operating budget for fiscal year 2015 would have increased by $284 million.[10]

In April 2014, the state legislature approved amendments to the budget for fiscal year 2015. The enacted budget totaled approximately $12.1 billion, slightly less than what the governor had originally proposed ($12.3 billion).[10]

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Hawaii had a state debt of approximately $46.1 billion. Its state debt per capita was $33,111. The report revealed that state governments faced a combined $5.1 trillion in debt. The obligation amounted to $16,178 per capita in the nation.[11]

Total state debt, 2014
State Total state debt State debt per capita Per capita debt ranking
Hawaii $46,100,856,000 $33,111 2
Alaska $29,780,396,000 $40,714 1
California $777,918,403,000 $20,449 9
Oregon $86,678,268,000 $22,229 8
Washington $89,579,477,000 $12,988 32
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Public pensions

See also: Hawaii public pensions and Hawaii public employee salaries

A 2012 report from the Pew Center on the States noted that Hawaii's pension system was funded at 61 percent at the close of fiscal year 2010, well below the 80 percent funding level experts recommend. Consequently, Pew designated the state's pension system as cause for "serious concern."[12]

The funding ratio for the state's pension systems decreased from 67.5 percent in fiscal year 2007 to 59.2 percent in fiscal year 2012, a drop of 8.3 percentage points, or 12.3 percent. Likewise, unfunded liabilities increased from approximately $5.1 billion in fiscal year 2007 to more than $8.4 billion in fiscal year 2012.

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.[13][14]

The table below lists the Standard and Poor's credit ratings for Hawaii and west coast states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.[15]

State credit ratings, 2004 to 2014
State 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Hawaii AA AA AA AA AA AA AA AA AA- AA- AA-
Alaska AAA AAA AAA AA+ AA+ AA+ AA+ AA AA AA AA
California A A A- A- A- A A+ A+ A+ A A
Oregon AA+ AA+ AA+ AA+ AA AA AA AA AA- AA- AA-
Washington AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA AA AA
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[16]

The table below notes what share of Hawaii’s general revenues came from the federal government in 2012. That year, Hawaii received approximately $2.4 in federal aid, 23.6 percent of the state's total general revenues. Figures from surrounding states are provided for additional context.[16]

Federal aid to state budgets, 2012
State Total federal aid ($ in thousands) Federal aid as a % of general revenue Ranking
Hawaii $2,352,114 23.55% 48
Alaska $2,860,509 19.97% 50
California $54,145,284 27.16% 40
Oregon $7,830,552 36.04% 13
Washington $9,743,127 28.59% 37
Source: United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014

Stimulus

According to Recovery.gov, the official government website for the Recovery Accountability and Transparency Board, under the American Recovery and Reinvestment Act, Hawaii received $1.3 billion in federal stimulus funding between February 2009 and June 2013.[17]

Budget process

Hawaii operates on a biennial budget cycle, with each biennium beginning in July. The sequence of key events in the budget process is as follows:[18][19]

  1. Budget instructions are sent to state agencies in July or August of the year preceding the start of the new biennium.
  2. State agencies submit their budget requests to the governor by September.
  3. Agency hearings are held in November.
  4. The governor submits his or her proposed budget to the state legislature in December.
  5. In April and May the legislature debates the budget. A simple majority is required to pass a budget.

Hawaii is one of 44 states in which the governor has line item veto authority.[19]

The governor is required by law to submit a balanced budget to the legislature. Though the legislature is not required to pass a balanced budget, the budget must to balanced for the governor to sign it into law.[19]

Agencies, offices and committees

The following standing committees in the Hawaii State Legislature deal with budget and finance matters:

  1. Finance Committee, Hawaii House of Representatives
  2. Ways and Means Committee, Hawaii State Senate

The Director of Finance heads the Hawaii Department of Budget and Finance and manages the cash, investments and bonds of the Hawaii state government. The director is appointed by the governor and serves until the end of the governor's term. The office is nonpartisan.

The Hawaii State Auditor performs post-audits of the finances, accounts and performance of all state agencies and offices of Hawaii. The auditor is appointed by the Hawaii Legislature and is a nonpartisan office.

Studies and reports

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.[20] According to the report, Hawaii received a grade of C and a numerical score of 71, indicating that Hawaii was "middling" in terms of transparency regarding state spending.[20]

Budget and finance ballot measures

Voting on
state and local
government budgets,
spending and finance
State finance.jpg
Policy
Budget policy
Ballot measures
By state
By year
Not on ballot
See also: State and local government budgets, spending and finance on the ballot and List of Hawaii ballot measures

Ballotpedia has tracked the following ballot measures relating to state and local budget and financial matters in Hawaii.

  1. Hawaii Appropriation Exemption for Educational Facilities Fund Amendment (2016)
  2. Hawaii Tax Rebates Amendment, Question 2 (2010)

Recent news

This section displays the most recent stories in a Google news search for the terms "Hawaii budget."

Some of the stories below may not be relevant to this page due to the nature of Google's news search engine.

Hawaii state budget and finances - Google News Feed

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Contact information

Hawaii Department of Budget and Finance
P. O. Box 150
Honolulu, Hawaii 96810
PH: (808) 586-1518

See also

External links

Additional reading

References

  1. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  2. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  3. 3.0 3.1 3.2 3.3 3.4 3.5 3.6 National Association of State Budget Officers, "State Expenditure Report: 2012-2014," accessed February 18, 2015
  4. United States Census Bureau, "State and County QuickFacts," accessed February 23, 2014
  5. National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  6. National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  7. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  8. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  9. 9.0 9.1 Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
  10. 10.0 10.1 National Association of State Budget Officers, "Summaries of Fiscal Year 2015 Proposed and Enacted Budgets," July 11, 2014
  11. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  12. Pew Center on the States, "Widening Gap Update: Hawaii," June 18, 2012
  13. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  14. Bankrate, "The 6 states with the worst credit ratings," September 27, 2012
  15. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014
  16. 16.0 16.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  17. Recovery, "Stimulus Spending by State," accessed March 18, 2015
  18. National Conference of State Legislatures, "State Experiences with Annual and Biennial Budgeting," updated April 2011
  19. 19.0 19.1 19.2 National Association of State Budget Officers, "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  20. 20.0 20.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014