GOVERNOR LINGLE STATEMENT ON COUNCIL ON REVENUES

For Immediate Release:  September 3, 2008

HONOLULU – Governor Linda Lingle issued the following statement today regarding the Council on Revenues’ unchanged revenues forecast.

“While we are pleased that the Council on Revenues did not revise its projected revenues outlook today, since August 2007, the Council has reduced its forecast by $2.9 billion that the state has to spend for the six-year planning period (FY09-FY14). 

“Prior to today’s Council on Revenues meeting, my Administration was already focused on formulating our next two-year budget and developing innovative ways to maintain public service at the highest level with fewer resources, without increasing taxes or fees that would raise the cost of living or the cost of doing business in the state. 

“In addition to the 4 percent restriction of discretionary spending for all departments that was implemented at the start of the fiscal year, we are planning additional spending restrictions including the deferral of spending cash for capital improvement projects within the Department of Education and the University of Hawai‘i.  Paying cash for capital improvements may be reasonable when revenues are abundant, but it would not be prudent to use cash for these projects when revenues are projected to be lower.  In addition, we will be restricting spending for new programs that were included in legislative acts outside of the operating budget.

“We are also looking at opportunities to obtain additional revenues from outside sources such as federal funding as well as private partnerships and investments, particularly in our high-tech and renewable-energy-related industries. 

“At the same time it is important that we continue to move forward aggressively on bond-funded capital improvement projects to upgrade our infrastructure and state facilities.  These projects, which will help keep the construction industry robust, include the $2.3 billion airports modernization plan and the $618 million harbors modernization plan, both of which are paid for by user fees.  Other ongoing repairs and new construction will improve our highways, public schools and libraries, University of Hawai‘i campuses, public housing facilities, state hospitals, small boat harbors and state parks. 

“While the previously forecasted, lower projected revenues will mean increased challenges for all of us, I am confident we can turn these challenges into opportunities for our state.”

####

For more information, contact:
Georgina Kawamura
Director, Budget and Finance
Phone: (808) 586-1518

Lenny Klompus
Senior Advisor – Communications
Phone: (808) 586-7708

Russell Pang
Chief of Media Relations
Phone: (808) 586-0043