Political Radar

`Peak conditions'

January 8th, 2014

Gov. Neil Abercrombie said Wednesday that the new forecast from the state Council on Revenues should not undermine his supplemental budget request.

State House and Senate leaders have said the lower forecast basically validates their cautious approach to the governor's new spending requests.

From Abercrombie:

My administration has submitted a supplemental budget that is able to accommodate revenue fluctuations – even slight declines – while furthering our initiatives to provide enhanced public services, recapitalize state reserves, address long-term liabilities, invest in public infrastructure, and support preservation efforts.

The Council on Revenues’ forecast supports my belief that Hawaii’s economy is already running at peak conditions. Although the adjusted forecast suggests slightly reduced potential revenues in the current fiscal year, the amount is very modest and manageable in the state’s financial plan. The revision in the forecast is more reflective of what has been substantial revenue growth over the last two fiscal years.

Additionally, our success in reaching collective bargaining agreements for most units allows us to focus on our initiatives within a sound six-year financial plan that embodies a degree of predictability necessary to navigate future fluctuations.

Because of our prudent fiscal management, we have a healthy positive balance from the end of fiscal year 2013 as we move forward on our long-term financial plan.

5 Responses to “`Peak conditions'”

  1. Bob Rosehill:

    Every bit of spare change they can find should go to the State retirement system. When will government learn that just ignoring a debt will not make it go away. Our little state is #1 in underfunded retirement systems in the whole United States. This will not miraculously disappear.

  2. Eric Ryan:

    This confirms it. Abercrombie is smoking meth. "Peak conditions" my okole. Watch your wallet, taxpayers. When Democrats tell you that everything is just fine, trouble is coming.

  3. Guy:

    Eric, in terms of the visitor industry, it is peak at conditions and near capacity. Also, unemployment is among the lowest in the nation. We have a budget surplus. We're replenishing the Rainy Day Fund. After decades of inaction, his Administration is paying toward unfunded liabilities. I'm not a fan of Abercrombie on every issue, but on the economy and State budget, he's been outstanding.

  4. Gerald de Heer:

    Guy, visitor spending growth is not at a peak and appears to be declining. At best, the State has made a small dent in paying down unfunded liabilities. Billions of dollars in unfunded liabilities remain. In effect the Governor punted and did a touchdown dance. Leadership is sharing the truth about our problems while charting a course towards solution. Using a campaign metaphor, we are in a canoe, paddling together. What they didn't tell us was, due to under-funding, the canoe has several small leaks. Money used to maintain and fix the boat is allocated for projects on shore, so the leaks will have to be dealt with later. And that's the good news. What the Captain didn't prepare for was the canoe reversed course and is headed back into the perfect storm: declining visitor spending, a reversal in employment, limited new business development, more unfunded liabilities, greater interest on capital projects including rail. So, where is the money coming from to pay for all this?

  5. Especially Incognito:

    "Here’s what Lightoller told Sylvia really happened. He was in his cabin when Titanic hit the iceberg. After the collision, he was called to the bridge. There he joined the Captain Edward Smith and First Officer William Murdoch and they went to Murdoch’s cabin to arm themselves should violence break out when loading the lifeboats. They told him that steersman Robert Hitchens had panicked and turned the ship to the right instead of the left around the iceberg. How could a steersman mistake something as simple as turning right or left?" History Blog on the Titanic.

    Someone panicked in past or present government and steered the canoe in the wrong direction by steering right and hit an obstruction.
    They should have steered left. Hawaii is sinking. Only the rich have life jackets. The canoe is not leaking, it is the canoe that was not built solid. Arrogance of the engineer who designed and had the ship built. A simple order was not carried out, exactly.

    Ask lingle, she steered Hawaii, right, conservatively speaking.

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