It's pretty simple. As a company has less money coming in, it has less money to invest, or less money to spend on even its day to day operations. And so it is with the state of Hawaii, which is looking at perhaps 20% cuts in spending in many areas, a stark reality based on general fund collections drying up over the past couple of years, with more bad news on the horizon.
It's hard to see massive cuts in Health, Safety, and Education, to name a few, but these are just a few of the departments that will be impacted. And, of course, when state departments and state services are impacted, the general populace certainly sees and feels the results. It's like this in states elsewhere; it's like this in industries everywhere; it's like this in households throughout the state. The public and private sectors are all looking for answers and wondering when the light will appear at the end of this relatively dark economic tunnel. It's one thing to say its cyclical, it's another to know when the vortex will stop.