State of Hawaii Fiscal Resilience Plan
Debt Management
The State Has a Long Track-Record of Conservative Debt Management
"
G.O. Bonds have conservative Constitutional constraints on
debt structure
Debt Service as a % of Prior Three-Year Average of General Fund Revenues
Fiscal Year 2000-2023
―
Limits final maturity to 25 years, and principal can be deferred
no more than 5 years
Requires level debt service or level principal amortization
Maximum annual debt service can be no more than 18.5% of
the average of the prior three-year General Fund revenues
No state-wide vote required for debt issuance
"
The State conservatively manages its debt portfolio
Bonds typically issued with a 20-year final maturity, including
during the pandemic
100% fixed rate G.O. debt with no derivatives
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
2000
2001
2002
BABS debt service is budgeted on a gross basis
―
The State's debt management is governed by a formal Debt
Management Policy and the State develops a Debt Affordability
Study every two years
100%
100%
90%
84%
80%
68%
The State's debt is under its allowable debt limit and 69%
amortizes within the next 10 years
70%
60%
50%
40%
30%
20%
10%
0%
1)
Excludes reimbursable G.O. Bonds and Bond Anticipation Notes debt service.
16
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Outstanding G.O. Principal by Year as a % of Current Outstanding Principal
Fiscal Year 2023-2042
2017
2018
2019
69% of G.O. principal
amortizes in the next 10 years
55%
43%
31%
21%
12%
6%
1%
2023
2025
2027
2029
2031
2033
2035
2037
2039
2041
2020
2021
2022
2023
STATE
OF
HAWAIIView entire presentation