Ige’s chief of staff also suggests upping the “barrel tax” on fossil fuels to help balance the budget.
Craig Hirai stressed that nothing is settled but dropped some hints about possible tax increases in a House Finance Committee hearing.
The proposed spending cuts may result in the first state government layoffs in more than a decade.
The governor, anticipating a slow economic recovery, likely will present lawmakers with a much-reduced conservative spending plan.
He also warns that nonprofits face deep cuts as state tax revenues dwindle due to the pandemic.
Discussions with unions are already underway as furloughs could begin in December. Gov. David Ige’s financial plan also includes a big loan from the feds.
Hawaii owes billions to its state retirement system. The coronavirus pandemic could make repaying those funds even harder.
A backlash is brewing against a potential deal for the company to collect Hawaii taxes — in part, because no one knows what’s in the agreement.