The new budget totals $20.8 billion compared with $17.5 billion for 2019. The 19 percent budget increase represents an additional $3.3 billion, most of which will be spent on capital improvement projects.
The first of a two-part analysis of the results of the increasingly opaque state budget process this past legislative session, and what we can expect in terms of revenues, funding and expenditures for the upcoming 2020 fiscal year that begins July 1, 2019.
Our taxes support essential social programs like Medicare, Medicaid and Social Security, as well as infrastructure, education, national defense and the environment. Tax credits help alleviate the tax burden from a regressive system that takes more from poor people than rich. Several measures in the state legislature aim to address this imbalance, and generate more revenue for the state.
Shifting some of the state’s tax burden would result in a more equitable, and profitable, system.
The state of Hawai‘i is not the only governmental entity collecting and spending money for the public good. Each of the four counties has taxing authority and responsibilities that complement state budgets and services. State and county revenue sources overlap very little. Counties collect property taxes, which, according to the state constitution, may not be assessed by the state. Other county revenues include: service and use fees for water, sewer and waste disposal, licenses, and permits, including building permits.
State budgets, particularly for the executive branch, showcase our government’s priorities when it comes to spending money on social programs, capital improvement projects, and operations for its various departments.
Good health isn’t just a result of having health insurance. Public policy affects health outcomes for people across the state, and we should make forward-thinking reforms to expand access to housing, nutrition, early childhood education and more, if we hope to keep Hawaiʻi at the top of the national health rankings.
The proposed budget for the executive branch for the next two years is larger than during the previous fiscal biennium. Despite this, the governor says he is being conservative with the state's spending reflecting inconsistencies in revenues collected compared to projections. Here's what he wants to spend the money on.
From collecting more revenue from the right places, to encouraging community-forward socioeconomic trends, there’s plenty of opportunity to improve.
Forty-four percent of the state’s tax revenue comes from the GET, a sales and use tax that imposes the second-largest burden in the nation for low-income earners.