Hawaii State Treasury and Economic Update
8
State Powers and Actions
The State has a wide range of tools at its disposal to manage its finances
STATE
1959
Budgeting
■ The Governor has the executive authority to control spending by restricting, delaying or suspending appropriations, including
managing labor through furloughs
Although the State cannot make supplemental appropriations without legislative approval, the Governor can shift money
within the budget
■ The State Legislature also has the ability to increase taxes and authorize debt without voter approval
■ The State plans to access $350 million of the $403.9 million of Emergency and Budget Reserve Fund (EBRF) for FY2021 and
has the ability to use the $191.3 million of Hawaii Hurricane Relief Fund (HHRF) in the future
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Sufficient
The State extended the income tax due date to July 20th, five days after the extended federal income tax deadline
Liquidity
■ The State's Treasury portfolio had a total market value of approximately $5.9 billion as of June 30, 2020
Borrowing
Capabilities
■ The State Legislature has authorized borrowing up to $2.1 billion by public sale or from the Municipal Liquidity Facility (MLF)
■ The State has the emergency powers to waive the G.O. debt limit to accommodate short-term cashflow borrowings
■ The State has the ability to defer G.O. Bond principal up to five years and extend the final maturity from 20 to 25 years
■ The State also has the ability to use excess premium from tax-exempt bonds to pay interest for up to three years
■ The State has the ability to inter-fund borrow from its special funds (such as Harbors and Highways)
County
Update
■ All four counties have received CARES Act funding - Honolulu directly and the others via the State
■ The State legislature has the ability to adjust the County transient accommodation tax allocation and has done so in the past
■ The Governor has the power to suspend TAT allocations subject to an emergency proclamation and has done so for FY 2021View entire presentation