HONOLULU (AP) — Hawaii officials have scaled back the state’s tax revenue projection.
The state Council on Revenues voted to reduce its projection of growth in state tax collections this year from 5 to 4.2 percent, the Honolulu Star-Advertiser reported Thursday.
The reduction means the state might have $55 million less to spend than expected.
The council, made up of economists and other experts, predicts how much the state will collect in taxes each year. Its projections inform the budgeting process for the state.
Gov. David Ige’s administration expects to have a $643 million surplus when the fiscal year ends in June, so officials don’t expect the revenue projection to have a major impact.
“I think it’s a picture of continued growth, but slowing growth,” said Carl Bonham, economics professor at the University of Hawaii at Manoa.
Economic growth could be downshifting in Hawaii, as indicators show the real estate and mortgage markets slowing, said Kristi Maynard, a council member.
“There are some signs that things are not going full speed ahead,” Maynard said. “I think there are more signs of caution now.”
The council did not make adjustments in the projections for the next six years, when state tax collections are expected to grow by 4 percent each year.
The governor has proposed a state general treasury budget of nearly $8.2 billion in the fiscal year that begins July 1. More than $8.4 billion has been proposed for the next year.
Information from: Honolulu Star-Advertiser