The 2011 Legislature developed a balanced biennium budget that addresses declining revenues and budget shortfalls it has faced for a number of years. The shortfall is $1.3 billion. First, we identifed and supported those programs and services that are core and essential to the functioning of State Government. Second, we made strategic investments in people and programs that encourage long-term economic growth and provide efficient public services.
Dealing with the $1.3 billion shortfall in the next budget, the Legislature used $640 million in budget cuts, reductions and lapses, coupled with revenue enhancements, suspension of tax exemptions and limiting itemized deductions for higher incomes, diverting existing taxes and fees, and non-general fund transfers totaling $600 million to balance the 2011-2013 biennium budget.
Impacted by lessons learned over the past several years, and a renewed sense of purpose with Governor Abercrombie’s “A New day in Hawaii,” a positive approach was taken to balance the budget. The 2011 Legislature has had to make hard choices and cuts but gave the new Governor the flexibility to wisely use the economic downturn as an opportunity to look at ways to streamline State Government in the 2012 Legislative Session.
