2021 Plan of Finance Amortization

HAWAI General Fund Financial Plan Assumptions/Details OF STATE O The State's Updated Multi-Year General Fund Financial Plan is Based upon the Recent September 2021 Council on Revenues Forecast 1959 ■ Expenditures are based upon all Legislatively approved budgets in 2021 - Also incorporates 2021 Legislative Session tax measures, Special Funds and Emergency Budget and Reserve Fund transfers as well as working capital borrowing Out year expenditures for Executive branch reflect continuation of recurring budget costs with increases for projected debt service, pension contribution, FICA, employee health benefits, OPEB and Medicaid costs Other budgets (Judiciary, Legislative, Office of Hawaiian Affairs) assume continuation of recurring budget costs Specific appropriations include $390 million for additional OPEB prefunding contributions and $250 million for an additional deposit into the Emergency Budget and Reserve Fund Improved Council on Revenues forecast allows for significant planned actions and set asides to be included in the updated Financial Plan (requires further Legislative approval and possibly federal approval due to receipt of COVID-19 funds) - Proposed voluntary set asides include a $1.05 billion deposit to the State's Emergency Budget Reserve Fund later this fiscal year and $250 million in OPEB payments above the ARC requirement in FY 2023 among other one-time expenditures The State has the flexibility to not implement these items in the event that revenue forecasts change ■ Before taking into account the large proposed voluntary reserve and OPEB deposits, the updated General Fund Financial Plan projects recurring revenues in excess of recurring expenditures each and every year through FY 2027 This will provide the State considerable flexibility in its ongoing financial management in the event that future Council revenue projections are reduced 12 Sources: Department of Budget and Finance.

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