Hawaii Visitor Industry and Public Health Update

Conclusion STATE OF 1959 HAWAI Hawaii is relatively well positioned to manage through current events Strong ■ Centralized government allows Hawaii to react more quickly to crises than many other states Governmental ■ Executive authority to control spending through the ability to restrict, delay or suspend appropriations ■ State Legislature has the ability to increase taxes and authorize debt without voter approval Authority Financial ■ $58.9 million EBRF and $191.3 million HHRF are still in reserve ■ Capitalized on the economic growth in recent years to increase contributions to fund pension and OPEB Preparedness ■ Avoided using prior budget surpluses to fund large new programs with recurring costs Continued Focus on Public Health Resilient Economy ■ Council on Revenues provides quarterly revenue forecasts that facilitate budget adjustments ■ The proactive COVID-19 management has held cases per capita amongst the lowest in the nation ■ Statewide management of most health and social welfare programs ■ Robust statewide healthcare system under which the vast majority of residents are insured ■ Diverse economy with multiple independent sectors, including construction and professional services ■ Military presence is critical for national security and provides further economic stability ■ Significant federal funding will help strengthen the recovery ■ Robust government and private investment in infrastructure will provide fiscal stimulus ■ Demand for Hawaii real estate remains strong ■ Local governments in Hawaii are financially strong with ample reserves ■ Hawaii is a globally-recognized, premium brand with a focus on health, nature and sustainability Premier Tourism Industry ■ Tourism industry is positioned for a quick recovery with a quarantine end date of October 15 ■ State, Hawaii Tourism Authority, airlines and hotels are working together to facilitate a safe and successful return of tourism to Hawaii 18

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