No tax hikes in Abercrombie's supplemental budget

HONOLULU (HawaiiNewsNow) - Gov. Neil Abercrombie's administration submitted its supplemental budget to the legislature on Monday. Under the proposal, the state budget would increase from $10.9 billion to $11.1 billion dollars.

The balanced supplemental budget for fiscal year 2012 to 2013 includes no tax increases. New general fund requests total nearly $119.9 million. However, the administration says it's identifying almost $85.9 million in savings through labor costs and better management of state finances. That leads to a net request equaling $35 million.

"We can balance the budget. We're not going to have any tax increases. We can make some sensible and reasonable down payments on initiatives that I think are generally and broadly agreed to," Abercrombie said. "We'll be able to payback the hurricane fund and rainy day fund at just under $175 million in cash."

"The devil is in the details on the budget itself, and you have 76 legislators, and many of them have their own agendas and their own policies. There will be tax increases proposed," said Sen Sam Slom (R, Hawaii Kai-Diamond Head).

"The next session should be one where there are choices available," Budget and Finance Director Kalbert Young said. "We're looking at a much more positive and optimistic future for the state of Hawaii.

Some of the new requests include:

• $46.4 million in restored funding for the Department of Human Services
• $46.1 million for the Department of Education and University of Hawaii
• $8.2 million for essential state services
• $19.2 million for Information Technology & Keiki/Kupuna programs

The budget is based on the Council on Revenues' 14.5% projected increase in revenues during the current fiscal year.

The governor plans to ask lawmakers to use some of the proceeds from the recent state bond sale to replenish the Hurricane Relief Fund and Rainy Day Fund.

The budget proposal also includes capital improvement projects that would use another $300 million of general obligation bonds.

State lawmakers will look over the request once the legislative session starts on January 18.

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