Adjustments to Hawaii’s projected tax revenues could mean state government hauls in $450 million more than previously predicted.
But there is a need for some “labor savings,” although the governor declined to be more specific.
The state Council on Revenues projects total personal income will actually increase by 5% this year but decline by 4% next year.
The Council on Revenues predicts Hawaii tourism will be doing a very modest business by November, but will recover slowly.
More businesses will close in the weeks ahead unless tourism resumes soon, financial forecasters say.
The state panel of economic experts now says Hawaii will be short by hundreds of millions of dollars more than expected.
The new projections by the state Council on Revenues mean the state has less money to spend in the years ahead.
It’s not a recession yet but government should consider picking up some of the private sector’s slack as the construction industry wanes.