How Hawaii Lawmakers Balanced the State Budget

Legislators had a lot on their plate this past legislative session, namely trying to balance the $1.2 billion shortfall in the state budget. Figuring out where to trim costs is no easy task and emotions ran high as representatives and senators argued over the various proposals. In the end, the budget was restored primarily by slashing program funding and enacting statewide furloughs. These sometimes controversial cuts accounted for 54 percent of the budget’s restoration, or $794 million worth.

If you want to find out more about the state budget details, the House Finance Committee will be giving a presentation to the public. House Finance Chair Rep. Marcus Oshiro, along with committee members Reps. Jessica Wooley, Ken Ito and Pono Chong will head the community forum in Kaneohe at the Ahuimana Elementary cafeteria, Wednesday, July 7 from 6 to 7:30 p.m.

Here’s a sneak preview of some of the examples of how Legislators cut $1.4 billion out of the budget:
•    Delaying the 2010 state tax refunds until July (temporarily saving $275 million)
•    Increase traffic abstract fees from $7 to $20 ($18 will be deposited into the general fund, and $2 will go to the Judiciary computer system special fund)
•    Increasing the cigarette tax by 1 percent (effective July 1)

The budget bickering isn’t necessarily over yet; Lingle still has several days to sign or veto the remaining budget related Senate and House bills.