The state Council on Revenues revised its forecast, reaffirming its previous General Fund tax revenue projection for the current fiscal year, and increasing its projections for the next three fiscal years, officials from the Governor’s office said.
State officials say the compounded increases would mean $86 million more in revenue over the upcoming biennium.
Over the next two years, tax revenue is projected to grow 8% in 2014, and then 7% in 2015, according to officials with the Governor’s office.
Gov. Neil Abercrombie responded to news saying he expects to see continued improvement in the construction and hospitality industries, the real estate market, and agricultural and business sectors. “All of our local industries will benefit from our improving economy,” he said in a press release.
The Governor issued a statement upon hearing the positive forecast saying, “Our economy is strong and appears to be getting stronger. Hawaii continues to lead the US amongst states with significant revenue growth possibilities. We must remember that the Council predictions relate to tax revenue growth.”
He continued saying, “I am very optimistic about the prospects for our local economy. My Administration has fostered increased activity in our economy and that translates into increased tax revenue due to that activity.”
The Governor called the forecast a “good sign” saying he believes the Council forecast “supports the proposition that economic activity is strong and improving.”
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