Historical Hawaii budget and finance information

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The historical Hawaii budget and finance information below applies to years prior to the most current fiscal year. With the exception of the tab labeled "Prior fiscal year budgets," the tabs below display information, from several different fiscal years, as it was presented on Ballotpedia in prior calendar years. For more current information regarding Hawaii's budget and finances, click here.

As published 2016

Hawaii budget and finances

General information

Budget calendar: Biennial

Fiscal year: 2017

State credit rating: AA (as of 2014)

Current governor: David Ige

Financial figures

Total spending (state and federal funds): $12.1 billion (estimated for 2015)

Per capita spending: $8,452.06 (estimated for 2015)

Total state tax collections: $6.0 billion (2014)

Per capita tax collections: $4,248.06 (2014)

State debt: $46.1 billion (as of 2014)

Per capita state debt: $33,111 (as of 2014)

State budget and finance pages • Total state expenditures • State debt • Tax policy in Hawaii

In Hawaii, as in other states, lawmakers and public officials are elected in part to manage the state's finances. This includes generating revenues (money coming into the state from various sources) and approving expenditures (the money spent on governmental functions and servicing state debt). State budgets are complex and fluid, as they depend on anticipated revenues and planned expenditures, which may alter over the course of a fiscal year. If revenues do not keep pace with expenditures, states generally have to raise taxes, cut services, borrow money, or a combination of the three. State budget decisions are also influenced by policy decisions at the national level, such as the Affordable Care Act or energy and environmental regulations, and issues at the local level, such as crime and the quality of education.

HIGHLIGHTS

Between fiscal years 2014 and 2015, total government spending in Hawaii increased by approximately $322 million—from $11.8 billion in fiscal year 2014 to an estimated $12.1 billion in 2015. This represents a 2.66-percent increase.

In Hawaii in fiscal year 2014, 63.8 percent of total tax revenues came from sales taxes and gross receipts. Income taxes accounted for 31 percent of total state tax collections.

Education accounted for 24.8 percent of state expenditures in fiscal year 2015, while 15.5 percent went to Medicaid.

The Hawaii state budget and financial data presented here come from different years because the states and the federal government report and publish the information at different times.

Definitions

The following terms are used to describe a state's finances:

• Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
• Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
• State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
• The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
• 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 are "funds received directly from the federal government."
• Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

Note: In comparing dollar amounts across the states, it is important to note that the cost of living can from state to state and within a state. The amounts given on this page have not been adjusted to reflect these differences. For more information on "regional price disparities" and the Consumer Price Index, see the U.S. Department of Commerce, Bureau of Economic Analysis.

Revenues

2014 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2014 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2013 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2013 population" and "Per capita collections" have not been abbreviated.

Compared to neighboring states, Hawaii had the second highest state tax collections per capita, at $4,248.

State tax collections by source ($ in thousands), 2014
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes	Total	2013 population	Per capita collections
Hawaii	N/A	$3,847,662	$223,543	$1,871,506	$90,620	$6,033,331	1,420,257	$4,248
Alaska	$128,076	$257,696	$141,947	$408,938	$2,456,212	$3,392,869	737,046	$4,603
California	$2,176,236	$50,002,053	$8,922,534	$76,854,157	$114,890	$138,069,870	38,792,291	$3,559
Oregon	$21,740	$1,444,542	$960,777	$7,144,552	$112,029	$9,683,640	3,971,202	$2,438
Washington	$1,974,354	$15,210,264	$1,414,960	$	$848,321	$19,447,899	7,063,166	$2,753
United States	$14,232,835	$411,414,175	$51,120,024	$357,104,785	$31,880,270	$865,752,089	318,907,401	$2,715
Source: U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016

Hawaii tax collections by source in 2014.
Source: U.S. Census Bureau

The table below lists 2014 tax collections by source as percentages of total collections. About 63.8 percent of Hawaii's total state tax collections came from sales and gross receipts.

State tax collections by source (as percentages), 2014
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes
Hawaii	N/A	63.8%	3.7%	31.0%	1.5%
Alaska	3.8%	7.6%	4.2%	12.1%	72.4%
California	1.6%	36.2%	6.5%	55.7%	0.1%
Oregon	0.2%	14.9%	9.9%	73.8%	1.2%
Washington	10.2%	78.2%	7.3%	0.0%	4.4%
Source: U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016

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, mainly in the form of grants for such things as Medicaid, education, and transportation. In 2013 federal aid to the states accounted for roughly 30 percent of all state general revenues. Federal aid varies from state to state. For example, Mississippi received approximately $7.5 billion in federal aid in 2013, accounting for about 43 percent of the state's general revenues, the highest percentage of all of the states. By contrast, North Dakota received about $1.5 billion in federal aid in 2013, or just 19 percent of the state's general revenues, the lowest percentage in the nation.

The table below notes what share of Hawaii’s general revenues came from the federal government in 2013. That year, Hawaii received approximately $2.3 billion in federal aid, 21.5 percent of the state's general revenues. Taking into consideration the state's 2013 population, this came out to about $1,657 in federal aid per capita. Figures from surrounding states are provided for additional context.

Federal aid to state budgets, 2013
State	Total federal aid ($ in thousands)	Federal aid as a % of general revenues	Ranking (by % of general revenues)	Est. 2013 population	Aid per capita
Hawaii	$2,326,602	21.5%	49	1,404,054	$1,657
Alaska	$2,747,308	22.4%	48	735,132	$3,737
California	$54,827,525	25.0%	42	38,332,521	$1,430
Oregon	$7,987,139	35.0%	13	3,930,065	$2,032
Washington	$9,737,429	27.3%	37	6,971,406	$1,397
Sources: United States Census Bureau, "State Government Finances: 2013," accessed April 4, 2016 United States Census Bureau, "State totals: Vintage 2013," accessed April 8, 2016 Note: Per-capita figures were generated by Ballotpedia by dividing total federal aid for the state by the estimated population of that state in 2013.

Spending

Estimated 2015 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2015 (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.

Hawaii's total estimated government spending in fiscal year 2015 was $12.1 billion, which was the lowest amount when compared to surrounding states.

Total estimated state spending, FY 2015 ($ in millions)
State	State funds	Federal funds	Total spending	Population	Per capita spending
Hawaii	$9,850	$2,250	$12,100	1,431,603	$8,452.06
Alaska	$10,633	$3,134	$13,767	738,432	$18,643.56
California	$158,996	$93,554	$252,550	39,144,818	$6,451.68
Oregon	$22,091	$11,302	$33,393	4,028,977	$8,288.21
Washington	$26,670	$10,975	$37,645	7,170,351	$5,250.09
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 Bureau estimates. Source: National Association of State Budget Officers, "Examining fiscal 2013-2015 state spending," accessed April 4, 2016

Spending by function

Breakdown of spending by function in FY 2014.
Source: National Association of State Budget Officers

See also: State spending by function as a percent of total expenditures

State spending in Hawaii can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2014 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.

In fiscal year 2014, Medicaid accounted for 15.5 percent of Hawaii's total expenditures.

State spending by function as a percent of total expenditures, FY 2014
State	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
Hawaii	15.0%	9.8%	0.7%	15.5%	1.8%	9.5%	47.8%
Alaska	14.1%	8.0%	1.1%	11.1%	3.3%	13.1%	49.3%
California	21.3%	7.5%	3.6%	24.3%	5.3%	6.1%	31.9%
Oregon	17.9%	1.3%	0.5%	20.9%	2.9%	5.8%	50.7%
Washington	23.4%	13.7%	0.6%	16.5%	2.6%	7.9%	35.3%
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."

Spending trends

Between 2010 and 2014, the share of the Hawaii state budget spent on Medicaid increased from 13.3 percent in 2010 to 15.5 percent in 2014. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).

Spending by function from 2010 to 2014 (as percentages)
Year	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
2014	15.0%	9.8%	0.7%	15.5%	1.8%	9.5%	47.8%
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%
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."

Fiscal year budgets

See also: Historical Hawaii budget and finance information

Fiscal years 2016-2017

See budget bill: HB 500

Governor David Ige proposed his biennial budget on December 22, 2014. This budget recommended spending of $12.6 billion in fiscal year 2016 and $13.1 billion in fiscal year 2017, which were both higher than the total spending in fiscal year 2015. The budget recommended additional funding for Medicaid mental health services, debt services from capital improvement projects, retirement benefit payments, and collective bargaining costs.

Governor Ige signed the state's two-year budget into law on June 12, 2015. The budget designated about $26 billion over two years and was similar to the governor's proposed budget.

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. In this report for fiscal year 2012, state debt was calculated based on four components: "market-valued unfunded public pension liabilities, outstanding government debt, unfunded other post employment benefit (OPEB) liabilities, and outstanding unemployment trust fund loans." The report revealed that altogether state governments faced a combined $5.1 trillion in debt, which amounted to $16,178 per capita in the nation.

Total 2012 state debt
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

Taxpayer burden

TIA Methodology: To figure a state’s taxpayer burden or surplus, TIA looked at a state’s total reported assets minus capital assets and assets restricted by law (buildings, roads, land, etc.) to calculate “available assets,” which were then compared to the amount of money the state owes in bills, including retirement obligations such as pension plans and healthcare benefits for retirees. If the difference between available assets and total bills was positive, TIA called this a surplus; if it was negative, this was a burden. This amount was then divided by the number of individual tax returns with a positive tax liability, thus expressing the total state surplus or burden on a per-taxpayer basis.

According to a report released in September 2015 by the nonprofit Truth in Accounting (TIA), Hawaii ranked 6th worst in the country in “taxpayer burden.” Rather than using per capita state debt, TIA ranked states based on what it called a “taxpayer burden,” a term that reflects “the amount each taxpayer would have to send to their state’s treasury in order for the state to be debt-free.” On the other hand, states that had sufficient resources to pay their bills were said to have a “taxpayer surplus,” which represents the amount that each taxpayer would receive if the state were to disburse its excess funds.

Based on analysis of Hawaii’s Comprehensive Annual Financial Report from June 30, 2014 and actuarial reports for the state’s retirement plans, TIA concluded that $14.7 billion in promised retirement benefits were unfunded, but only $4.3 billion of these liabilities were reported on Hawaii’s balance sheet. With all of the unfunded retirement benefits included in the total debt, the state had a shortfall of $12.4 billion, or a taxpayer burden of $26,500.

Public pensions

See also: Hawaii public pensions and Hawaii public employee salaries

Between fiscal years 2008 and 2012, the funded ratio of Hawaii's state-administered pension plans decreased from 68.8 percent to 59.2 percent. The state paid 84 percent of its annual required contribution, and for fiscal year 2012 the pension system's unfunded accrued liability totaled $8.4 billion. This amounted to $6,329 in unfunded liabilities per capita.

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.

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.

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

Economic indicators

See also: Economic indicators by state

Hawaii's GDP increased by 0.8 percent in 2014. Click the image to view a larger version.

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.

Hawaii’s median annual household income was $60,814 from 2011 to 2013, highest among neighboring states. Hawaii also had the lowest unemployment rate as of September 2014.

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

Various economic indicators by state
State	Distribution of population by FPL* (2013)				Median annual income (2011-2013)	Unemployment rate		Total GSP (2013)†
	Under 100%	100-199%	200-399%	400%+		Sept. 2013	Sept. 2014
Hawaii	11%	16%	35%	38%	$60,814	4.7%	4.2%	$75,235
California	15%	21%	28%	36%	$57,161	8.8%	7.3%	$2,202,678
Oregon	15%	19%	31%	35%	$54,066	7.6%	7.1%	$219,590
Washington	12%	19%	28%	41%	$60,520	6.9%	5.7%	$408,049
United States	15%	19%	30%	36%	$52,047	7.2%	5.9%	$16,701,415
* Federal Poverty Level. "The U.S. Census Bureau's poverty threshold for a family with two adults and one child was $18,751 in 2013. This is the official measurement of poverty used by the Federal Government." † Median annual household income, 2011-2013. ‡ In millions of current dollars. "Gross State Product is a measurement of a state's output; it is the sum of value added from all industries in the state." Source: The Henry J. Kaiser Family Foundation, "State Health Facts"

Budget process

State documents and agenciesBelow are links to official Hawaii budget and financial documents. The first is the state's Comprehensive Annual Financial Report (CAFR). A CAFR is a detailed presentation of a government entity's financial condition. This includes fiscal activities and balances for a fiscal year. The second link is to the state's relevant budget agency or office. Hawaii CAFR Hawaii budget agency

Hawaii operates on a biennial budget cycle, with each biennium beginning on July 1. The sequence of key events in the budget process is as follows:

1. Budget instructions are sent to state agencies between July and August of the year preceding the start of the new biennium.
2. State agencies submit their budget requests to the governor by September.
3. The governor submits his or her proposed budget to the state legislature in December.
4. In April or May, the legislature adopts 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.

The governor is statutorily and constitutionally required to submit a balanced budget to the legislature. Though the legislature is not required to pass a balanced budget, the budget must be balanced for the governor to sign it into law.

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.

Transparency

See also: "Following the Money" report, 2015

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 March 2015. The report, entitled "Following the Money," measured how transparent and accountable state websites were with regard to state government spending. 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.

As published 2015

State finances in the U.S.
State tax policy in the U.S.
Pension Policy
State finances on the ballot Taxes on the ballot Glossary of state budget terms Public pensions

The information on this tab contains: Spending (fiscal years 2013 and 2014) Revenues (fiscal year 2013) State debt (fiscal year 2012) Federal aid to the state budget (fiscal year 2012) Budget process

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.

HIGHLIGHTS

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 following terms are used to describe a state's finances:

• Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
• Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
• State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
• The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
• 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 are "funds received directly from the federal government."
• Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

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.

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 Bureau estimates. 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.

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."

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).

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."

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.

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.

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

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. In this report for fiscal year 2012, state debt was calculated based on four components: "market-valued unfunded public pension liabilities, outstanding government debt, unfunded other post employment benefit (OPEB) liabilities, and outstanding unemployment trust fund loans." The report revealed that altogether state governments faced a combined $5.1 trillion in debt, which amounted to $16,178 per capita in the nation.

Total 2012 state debt
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

Between fiscal years 2008 and 2012, the funded ratio of Hawaii's state-administered pension plans decreased from 68.8 percent to 59.2 percent. The state paid 84 percent of its annual required contribution, and for fiscal year 2012 the pension system's unfunded accrued liability totaled $8.4 billion. This amounted to $6,329 in unfunded liabilities per capita.

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.

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.

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 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.

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.

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.

Budget process

Hawaii operates on a biennial budget cycle, with each biennium beginning on July 1. The sequence of key events in the budget process is as follows:

1. Budget instructions are sent to state agencies between July and August of the year preceding the start of the new biennium.
2. State agencies submit their budget requests to the governor by September.
3. The governor submits his or her proposed budget to the state legislature in December.
4. In April or May, the legislature adopts 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.

The governor is statutorily and constitutionally required to submit a balanced budget to the legislature. Though the legislature is not required to pass a balanced budget, the budget must be balanced for the governor to sign it into law.

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, 2015

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 March 2015. The report, entitled "Following the Money," measured how transparent and accountable state websites were with regard to state government spending. 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.

As published 2014

Between fiscal year 2009 and fiscal year 2013, Hawaii's total expenditures increased by approximately $700 million, from $10.9 billion in 2009 to $11.6 billion in 2013. This represents a 6.03 percent increase, below the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).

Spending

Definitions

Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:

• General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."
• Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the 'Other funds' column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."
• Federal funds: "Funds received directly from the federal government."
• Bonds: "Expenditures from the sale of bonds, generally for capital projects."

2013

Breakdown of expenditures in FY 2013
Source: National Association of State Budget Officers

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context). Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)
State	General fund	Federal funds	Other funds	Bonds	Total	Per capita expenditures**
Hawaii	$5,666	$1,912	$3,271	$735	$11,584	$8,250.39
Alaska	$7,301	$2,902	$1,389	$550	$12,142	$16,516.76
California	$95,665	$81,299	$38,656	$12,261	$227,881	$5,944.85
Oregon	$5,960	$7,452	$12,262	$132	$25,806	$6,566.30
Washington	$15,633	$7,744	$7,809	$2,016	$33,202	$4,762.60
**Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates. Source: National Association of State Budget Officers

Spending by function

2012

Breakdown of expenditures by function in FY 2012
Source: National Association of State Budget Officers

State expenditures in Hawaii can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data 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.

Expenditures by function, FY 2012 (as percentages)
State	Elementary and secondary ed.	Higher ed.	Public assistance	Medicaid	Corrections	Transportation	Other
Hawaii	15.6%	11.3%	0.9%	12.3%	2.0%	10.0%	48.0%
Alaska	13.4%	9.3%	1.1%	11.6%	3.0%	16.8%	44.8%
California	19.9%	7.0%	3.8%	21.6%	5.4%	6.3%	36.0%
Oregon	14.0%	2.5%	0.7%	18.2%	3.9%	6.7%	54.1%
Washington	22.9%	17.8%	1.0%	12.1%	2.7%	8.4%	35.1%
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."

Spending trends

Between 2008 and 2012, funds spent on elementary and secondary education fell by 6.3 percentage points, a 28.8 percent decrease in the share of the budget. Meanwhile, funds spent on higher education and Medicaid rose by just over one percentage point, an 11.8 percent and a 9.8 percent increase in the share of the budget, respectively. The table below details changes in expenditures from 2008 to 2012.

Figures are rendered as percentages, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percentages)
Year	Elementary and secondary ed.	Higher ed.	Public assistance	Medicaid	Corrections	Transportation	Other
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%
2008	21.9%	10.1%	0.8%	11.2%	2.1%	10.0%	44.0%
Change in %	-6.3%	1.2%	0.1%	1.1%	-0.1%	N/A	4%
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."

Revenues

2013 revenues

Breakdown of general fund revenue sources in FY 2013
Source: National Association of State Budget Officers

The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)
State	Sales tax	Personal income tax	Corporate income tax	Gaming tax	Other taxes and fees	Total	Per capita revenue
Hawaii	$2,945	$1,736	$101	$0	$1,452	$6,234	$4,440.00
Alaska	$0	$0	$605	$8	$6,863	$7,476	$10,169.60
California	$20,240	$63,901	$7,509	$1	$6,544	$98,195	$2,561.66
Oregon	$0	$6,300	$500	$0	$496	$7,296	$1,856.46
Washington	$7,656	$0	$0	$0	$8,116	$15,772	$2,262.38
**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013. Source: National Association of State Budget Officers

Revenue trends

The table below details the change in revenue sources in the general fund from 2009 to 2013. Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, Hawaii ($ in millions)
Year	Sales tax	Personal income tax	Corporate income tax	Gaming tax	Other taxes and fees	Total	Per capita revenue
2013	$2,945	$1,736	$101	$0	$1,452	$6,234	$4,440.00
2012	$2,698	$1,541	$73	$0	$1,349	$5,661	$4,072.40
2011	$2,496	$1,231	$50	$0	$1,376	$5,153	$3,742.47
2010	$2,316	$1,528	$59	$0	$950	$4,853	$3,558.62
2009	$2,418	$1,338	$54	$0	$1,198	$5,008	$3,866.65
Change in %	17.9%	22.9%	46.5%	N/A	17.5%	19.7%	12.9%
**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates. Source: National Association of State Budget Officers

Historical spending

The information on state budget historical spending below was compiled by the National Association of State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).

Historical state spending in Hawaii ($ in millions)
Fiscal year	General Fund		Other funds		Federal funds		Bonds		Budget totals
	Total	% of Budget	Total	% of Budget	Total	% of Budget	Total	% of Budget
2011-2012	$5,511	48%	$3,285	29%	$1,932	17%	$766	7%	$11,494
2010-2011	$4,969	44%	$3,116	28%	$2,554	23%	$582	5%	$11,221
2009-2010	$4,838	44%	$3,045	28%	$2,391	22%	$674	6%	$10,948
Averages:	$5,106	46%	$3,149	28%	$2,292	20%	$674	6%	$11,221

Budget transparency

Transparency evaluation
	State Procurement Office
Searchability	Y
Grants	N
Contracts	Y
Line item expenditures	N
Dept./agency budgets	N
Public employee salaries	N
Last evaluated in 2011.

See also: Evaluation of Hawaii state website and Constitutional provisions regarding reading of bills

Budget review period

See also: Constitutional provisions regarding reading of bills

Article 3, Section 15 of the Constitution of the State of Hawaii requires a 48-hour review period before any bill, including a budget bill, can be voted on for final passage.

Government tools

The table to the right is helpful in evaluating the level of transparency provided by the Hawaii State Procurement Office.

Multi-measure budget transparency profile

The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for Hawaii, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Hawaii tied for 33rd in the nation with 12 other states, earning four out of eight possible points.

Hawaii - IGPA score for budget process, contents and disclosure
Budget transparency indicator	Yes or no?
Performance measures
"Generally Accepted Accounting Principles" budget	N
Multi-year forecasting
Annual cycle	N
Binding revenue forecast
Legislative revenue forecast	N
Nonpartisan staff
Constitution or statutory tax/spend limitations	N
TOTAL	4

In addition to the individual state profile, IGPA offered a 50-state comparison and profiles for other states.

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2015

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 March 2015. The report, entitled "Following the Money," measured how transparent and accountable state websites were with regard to state government spending. 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.

Prior fiscal year budgets

Fiscal years 2016-2017

See budget bill: HB 500

Governor David Ige proposed his biennial budget on December 22, 2014. This budget recommended spending of $12.6 billion in fiscal year 2016 and $13.1 billion in fiscal year 2017, which were both higher than the total spending in fiscal year 2015. The budget recommended additional funding for Medicaid mental health services, debt services from capital improvement projects, retirement benefit payments, and collective bargaining costs.

Governor Ige signed the state's two-year budget into law on June 12, 2015. The budget designated about $26 billion over two years and was similar to the governor's proposed budget.

Fiscal year 2015

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.

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).

Fiscal year 2014

See budget bill: HB 200

Hawaii state budget -- 2014
Hawaii State Legislature
Text:	HB 200
Legislative history
Introduced:	January 18, 2013
House:	March 13, 2013
Vote (lower house):	48-0
Senate:	April 4, 2013
Vote (upper house):	24-0
Conference:	April 30, 2013
Conference vote (upper house):	25-0
Conference vote (lower house):	50-0
Governor:	Neil Abercrombie
Signed:	June 20, 2013

Governor Neil Abercrombie submitted his biennial state budget for FY 2014-15 on December 18, 2012. His plan requested a total of $12.4 billion, $6.1 billion for fiscal year 2014 and $6.3 billion for fiscal year 2015. The administration also requested $1.7 billion for capital improvement projects for FY 2014 and $906 million for FY 2015.

The final biennial budget for FY 2014-2015 was passed by the Hawaii State Legislature on April 30, 2013 and signed into law by the governor on June 20, 2013. The budget was effective as of July 1, 2013.

Fiscal year 2013

See also: Hawaii state budget (2012-2013)

Fiscal year 2012

To view the 2011-2012 budget, please click here.

Fiscal year 2011

See also: Hawaii state budget (2010-2011)

Fiscal year 2010

See also: Hawaii state budget (2009-2010)

See also

• Hawaii state budget and finances