Expect Budget to Dominate Session — Again

Chad Blair/Civil Beat

This time last year, lawmakers and the Abercrombie administration were scrambling for ways to shore up a nearly $850 million deficit that eventually swelled to $1.3 billion.

The budget overshadowed the entire legislative session. Lawmakers approved raiding the state's reserves and enacting $600 million in new taxes and painful budget restrictions to close the gap. With public labor contracts set to expire, the state built in 5 percent labor savings and an even 50-50 split for health premiums across its unionized workforce to save money.

This time around, even with general fund revenues on the upswing and tax hikes in place, budget talks could still dominate the session.

Potential budget cuts: Gov. Neil Abercrombie's bigger budget plan for the upcoming year had projected significant surpluses going forward, but was based on a forecast that has since been downgraded.

Budget Director Kalbert Young has said the plan will still work for the year starting July 1, but outer years will have to be re-budgeted to make up potential deficits. He expects to present a new financial plan to lawmakers this month, but would not reveal what tightening measures could be implemented.

Young told lawmakers last week he couldn't "say definitely no, or definitely yes" whether new taxes would be proposed in outer years.

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