Issue – Where Did The Money Go?
Senator Norman Sakamoto
May 30, 2006
An improved economy has resulted in a $600 million general fund surplus for the State of Hawaii. The Senate Committee on Ways and Means has approached this surplus by looking at public needs first – education, health, human services – then tax relief. This resulted in two key measures being passed in the 2006 session.
The 'Fix Hawaii Schools Act' (SB2956 CD1) appropriates $235 million for repairs and maintenance, and renovation for Hawaii schools. This sum of money will go a long way to reducing our schools' repairs and maintenance backlog.
The tax reform bill (HB957 CD1) expands the tax brackets by 20 percent and raises the standard deduction to 40 percent of the federal level. Taxpayers will benefit by a tax decrease of approximately $50 million. The attached table and pie chart answers the question: "Where did the money go?"
Where Did The Surplus Go?
| Description | Budget (millions) |
% |
|---|---|---|
| DOE (operating, whole school renovation, r&m) | 303.0 | 51% |
| UH (operating, r&m) | 55.0 | 9% |
| Housing / Homeless Package | 50.0 | 8% |
| Tax Cuts | 50.0 | 8% |
| Energy Package | 30.0 | 5% |
| Disaster Package (rain, flood, future prep) | 20.0 | 3% |
| Agriculture Package | 15.0 | 3% |
| Health and Human Services Program | 76.0 | 13% |
| Total: | 599.0 | 100% |