Categorized | News

General fund revenues off by 5 percent

MEDIA RELEASE

Gov. Linda Lingle issued the following statement in response to the Department of Taxation’s report on general fund tax revenue collections for August.   

The latest general fund revenue collection report gives us a true picture of the state’s financial status. I am very concerned that in the first two months of the fiscal year actual revenue collections have fallen by 5 percent – or $36.1 million – which is steeper than the 1.5 percent decline for FY10 the Council on Revenues projected last month. 

This 5 percent decline is not a projection, but reflects actual lower collections of tax revenues.   

This reinforces the need for decisive actions to ensure the State maintains our fiscal viability. The fact is, we simply cannot continue to spend beyond our means, and my Administration is looking for additional ways to immediately reduce expenses while maintaining public services and remaining focused on growing our economy. 

The lower actual revenue collections also reemphasizes that we cannot put off making tough, realistic decisions needed to close the budget shortfall. Every month that goes by without a resolution means the state will fall deeper and deeper in the hole, and the amount of savings we will need to make up the difference will only get bigger. 

While the state has already reduced spending by over $2 billion over the past year, without impacting labor costs, the reality is we can no longer afford to maintain the current level of labor expenses.  I am continuing to work toward reaching a negotiated settlement with the public employee unions, rather than wait for a binding arbitration decision in December.

Aug09TaxRevenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Kawafuchi091009

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