Hawaii Visitor Industry and Public Health Update
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General Fund Financial Plan as of October 1, 2020
The State is pursuing a two-phase approach to manage the General Fund Financial Plan
Initial Phase: Taking actions to ensure that the State can address revenue shortfalls through FY2021
FY2020
FY2021
Administration issued directives to reduce spending -- restrictions, hiring freezes, etc
Legislature authorized fund transfers ($341 million)
Legislature authorized transfer of $345 million from the EBRF to general fund
Administration walked back supplemental budget requests ($178 million) and proposed legislation ($19 million)
Legislature reduced FY2021 base budget by $205 million
Legislature authorized up to $2.1 billion of working capital borrowing through short-term G.O. Bonds; however,
Administration plans to borrow only $750 million to be repaid over five years
Legislature authorized use of $183 million from the HHRF to address pandemic-related shortfalls; however,
Administration does not plan to use HHRF funding at the present time
Legislature authorized fund transfers ($40 million)
Administration to negotiate approximately 9.2 % furloughs for most State employees ($311 million)
Administration temporarily suspended OPEB pre-funding by emergency proclamation ($390 million) and will pay
only retiree health premiums ($452 million)
Second Phase: Undertaking a program review in conjunction with preparation of the fiscal biennium 22-23 budget, that will be
presented to the Legislature during the 2021 legislative session
FY2021 - 23
To ensure that State expenditures are in line with reduced revenue projections, the state is targeting program
review reductions in the amount of $605 million
FY2024 - 25
"
Future considerations may include possible revenue enhancements, refocusing the State's Medicaid program,
etc.
General fund ending balance is now projected to be positive in these years
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Sources: Department of Accounting and General Services; Department of Budget and Finance, July 2019.
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