Hawaii state budget (2012-2013)

Note: This article was last updated in 2012. Click here for more recent information on state budgets and finances.

• See past state budgets

Budget Director Kalbert Young said that the state estimated a $19 million shortfall by end of FY2013.

The FY2012-13 state budget as originally enacted can be found online, as well as the subsequent supplemental FY2013 budget..

Supplemental FY2013 State Budget

The legislature passed a supplemental budget for FY2013 on April 28, 2012. Negotiators approved $428 million in new bond-financed state construction, including $250 million for repair and maintenance projects. The additional money took the general obligation bond portion of the budget to $825 million in FY2013.

In Dec. 2011, Gov. Abercrombie released his $188 million supplemental budget request for FY 2013 to state lawmakers. The governor's proposed supplemental budget can be found online.

The Senate Ways and Means Committee unanimously passed the supplemental budget on April 2, 2012. The Senate passed the supplemental budget bill, House Bill 2012, on April 10, 2012.

The Senate wanted to invest $500 million in capital improvement projects at state facilities to stimulate the economy, which was $200 million more than what the governor included in his proposed budget. The House, however, did not want to increase the state's debt. The issue went unresolved on April 27, 2012, the last day of the session for committee hearings.

Biennial State Budget Gov. Abercrombie signed the $21.9 billion biennial state budget on June 23, 2011. Based on the budget drafted by the state legislature, the governor had to reduce state spending by $50 million in each of the next two years.

The budget also increased spending to cover increasing public worker health care and debt service costs. A summary of the operating and capital budgets can be found online.

The budget authorized $11 billion in spending for FY201, with $5.4 billion in the general fund and $10.9 billion for FY2013, with $5.5 billion in the general fund, overall an increase of approximately seven percent from FY2011.

Abercrombie also signed into law a capital improvements project budget that included $1.8 billion for fiscal year 2012 and $1 billion for fiscal year 2013.

Education spending

For FY2012, Hawaii devoted 25 percent of its total spending to K-12 education, up from 22.3 percent in FY2010.

Fiscal Year	Total Spending	Education Spending	Percent Education Spending
2009	$14.3 billion	$3.4 billion	24.3%
2010	$14.3 billion	$3.2 billion	22.3%
2011	$13.8 billion	$3.2 billion	23.1%
2012	$13.6 billion	$3.4 billion	25.0%

Governor's Proposed Budget

Overall, Gov. Abercrombie proposed a $10.8 billion budget for FY2012, which was a 6.1 percent increase over the FY2011 budget, and an $11 billion budget for FY2013, up 8.2 percent from FY2011. The general fund portion of the proposed budget is $5.5 billion in FY2012—a 12.6 percent increase, and $5.7 billion in FY2013—a 16.4 percent increase.

Legislative Budget

State legislators agreed on a final version of the state's $11 billion FY2012-13 budget, which relied on pending tax increases generating $500 million over the next two years to fund the spending plan to balance the state's $1.3 billion projected shortfall.

On March 9, 2011, the state House Finance Committee approved House Bill 200, its $10.98 billion draft of the state budget for FY2012, which was less than the version than Gov. Neil Abercrombie proposed but still 7.1 percent larger than the FY2011 budget. It also provided for $10.9 billion in spending in FY2013, an increase of seven percent. The general-fund portion of the budget was $5.4 billion in fiscal year 2012, a 10.2 percent increase, and $5.6 billion in FY2013, a 14.7 percent increase.