Hawaii State Treasury and Economic Update
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General Fund Financial Plan as of July 15, 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 $350 million from the EBRF to general fund
Administration walked back supplemental budget requests ($178 million) & 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 (or MLF)
however, Administration plans to borrow only $750 million in late 2020
■ 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 10% furloughs for most State employees ($190 million)
Administration to suspend temporarily OPEB pre-funding & pay only retiree health premiums ($390 million) by
emergency proclamation
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, to ensure that State expenditures are in line with reduced revenue
projections (current target of $520 million)
FY2021 - 23
Future considerations (during subsequent legislative sessions) may include possible tax increases, refocusing the
State's Medicaid program, other budget reductions, etc.
10 Sources: Department of Accounting and General Services; Department of Budget and Finance, July 2019.View entire presentation