State of Hawaii Fiscal Resilience Plan
Reserves and Liquidity
The State's Reserves and Liquidity Have Increased
Reserve Balances and Reserve Policy
■
FY 2023 reserves and general fund ending balance reached a high of over $3
billion, reflecting the infusion of one-time COVID-related resources
Reserves and General Fund Ending Balance
Fiscal Year 2016-2024(1)
($MM)
$3,500
STATE
OF
HAWAII
To ensure appropriate and prudent reserve levels over the long-term, the State
updated its Reserve Policy in December 2022:
$3,000
$2,500
At least 10% of prior year's general fund revenue in the emergency and budget
reserve fund (EBRF)
$2,000
At least 5% of prior year's general fund revenue as a general fund balance
$2,619
$1,500
At least 25% of prior year's general fund revenue, or at least 20% of prior year's
general fund revenue if the EBRF fund balance objective is met, for overall State
reserves (i.e. general fund balance, EBRF and HHRF)
$1,250
$1,000
$894
$750
$752
$1,500
$1,028
$992
$974
Emergency and Budget Reserve Fund ("EBRF")
$500
■
$630 million was transferred to the EBRF in FY 2023, increasing the balance to
$974 million
$101
$187
$0
$311 $376
$59
$182 $178 $184 $191
$378
2016
2017
2018
2019
2020
$320 $326
$187 $173 $169
$170
2021 2022 2023 2024 Proj
☐
$500 million was appropriated during the 2022 Legislative session and an
additional $130 million was transferred pursuant to Hawaii Revised Statutes since
revenue grew more than 5% for both FY 2021 and FY 2022
The State deposited an additional $500 million to the EBRF in October 2023,
which was approved by the State Legislature in 2023, for a total of $1.5 billion
HHRF
EBRF
■General Fund Ending Balance
General Fund Ending Balance and Reserves (EBRF and HHRF) as %
of Prior FY GF Revenues
Fiscal Year 2016-2024(1)
40%
☐
Requires two-thirds majority of State Legislature to withdraw funds from EBRF
Hawaii Hurricane Relief Fund ("HHRF")
34.6%
32.5%
35%
30%
23.2%
25%
21.2%
FY 2023 market valuation of $169.0 million
20.0% 19.6%
17.7%
17.2%
20%
16.4%
15.7%
Included as part of overall State reserves within the updated State's Reserve
Policy
15%
11.2%
10%
7.0%
7.5%
7.3%
6.1%
5.5%
4.4%
Liquidity
3.2%
5%
The State's treasury portfolio has grown significantly in recent years, from $7.4
billion in 2019 to $10.8 billion at present
0%
2016
2017
2018
2019
2020
2021
2022
2023
2024 Est.
13
1)
FY 2023 is actuals and FY 2024 is projected. See General Fund Financial Plan.
GF+ EBRF+ HHRF as % of Prior Year GF Revenues
EBRF+ HHRF as % of Prior Year GF RevenuesView entire presentation