Hawaii Visitor Industry and Public Health Update
State Powers and Actions
The State has a wide range of tools at its disposal to manage its finances
STATE
OF
1959
HAWAI
Budgeting
Sufficient
Liquidity
■ 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 $345 million of the $403.9 million of Emergency and Budget Reserve Fund (EBRF) to the general
fund for FY 2020 and the State Legislature authorized transfer of $183 million of Hawaii Hurricane Relief Fund (HHRF) in FY
2021, which the Administration does not plan to use at this time
■ The State extended the income tax due date to July 20th, five days after the extended federal income tax deadline
■ The State's Treasury portfolio had a total market value of approximately $6.9 billion as of September 30, 2020
Borrowing
Capabilities
■ The State Legislature has authorized borrowing up to $2.1 billion
County
Update
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■ 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)
■ 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