MEDIA RELEASE

Gov. Neil Abercrombie has responded to the state Council on Revenues (COR) forecast revisions that included an increase to its previous projection for 2013 General Fund tax revenues from 5.1 to 6.7 percent growth and additional increases over the next two years.

Also, for 2014, the forecast for revenues was upgraded to 7.3 percent from 6.8 percent.

Abercrombie said:

“The Council on Revenues briefly deliberated on the issue of federal sequestration and believes that the impact of the federal budget cuts will be largely offset by positive growth in the overall Hawaii economy.

“These latest projections are encouraging and will assist state Legislators as they consider funding our proposed balanced budget and other transformative initiatives.

“The term ‘cautious optimism’ is perhaps more appropriate now than it has been for many years. However, the impact of sequestration will be real, particularly to federal employees who face the reality of furloughs and the indirect effect this with have on our local economy.

“The proactive contingencies built into the 2013-2015 fiscal biennium budget remain prudent, and my administration will continue to move forward responsibly with the sound fiscal strategies that have helped our state emerge from recession.”