16 Jan 2012

Hawaii's new plan for long-term project revenue deficits

3:12 pm on 16 January 2012

Hawaii is drafting a revised six year financial plan to better deal with long term project revenue deficits.

The deficits over the next four years are expected to reach close to $300 million US dollars within the next four fiscal years.

The US state's budget and finance director has already started briefing the Ways and Means and Finance committees of the House and Senate.

Kalbert Young says it is important to consider a plan now to try and balance budgets over the next four years as the economic recovery in the US from the recession remains slow.

"This is where the discussion will start, whether its to look for different revenue enhancement measures, what programmes can be curtailed, or cut on the expenditure side, what if any other strategies can be done to garner a level of savings or added revenues to see if the outer years become back into balance."

Kalbert Young says while tax increases aren't expected right away, he's not ruling them out completely.