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.
To address mounting retirement obligations, Hawai‘i’s public employers have agreed to make actuarially determined payments over 30 years to pay down unfunded liabilities and grow the pension and health fund trusts that help fund future public contributions. These payments, which are largely supported by state and county taxes and fees, will be a sizeable burden in a small state like Hawai‘i.
Recommendations on handling Hawai‘i’s public worker retirement commitments as the Baby Boomer generation prepares to enter retirement.
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.