Hawaii Taxable General Obligation Bonds 2023 slide image

Hawaii Taxable General Obligation Bonds 2023

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 Revenues
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