State Pays a Price for Faulty Economic Forecasts

·By Nanea Kalani

The Hawaii Council on Revenues makes quarterly predictions about whether revenues will shrink or grow that dictate how much the state can spend. But a five-year analysis of its work shows forecasts are often off-base. When they’re wrong, there are real consequences.

Discussion

Does it make sense to keep the Council on Revenues if the Legislature has learned to preemptively react to its predictions? Should it be dissolved? Join the debate.