Hawaii
Council On Revenues Projects Hawaii Tax Collections Will Be Less Than Expected
The state will collect about $125 million less this fiscal year than lawmakers expected when they approved the state budget last spring, mostly because of a massive state income tax cut legislators approved in the final days of the last session.
The state Council on Revenues, a panel of experts tasked with projecting state tax collections each year, concluded Thursday that Hawaii is gradually recovering from the tourism slump triggered by the Aug. 8, 2023, Maui wildfires, while the construction industry is booming.
But the council maintained that state general fund tax collections will grow by a modest 3.5% this fiscal year and 2.2% next year because of the unprecedented tax cuts lawmakers approved in May.
New projections made public by the state Tax Department Thursday show the income tax cut in Act 46 will reduce state tax collections by more than $240 million in the fiscal year that began July 1, and will reduce collections by nearly $597 million the following year.
Another tax measure approved in the spring, Act 47, will reduce excise tax collections by an additional $33 million next year. That new law eliminates the state excise tax on medical and dental care services provided under Medicare, Medicaid and the military’s TRICARE.
The bottom line is that while the council projected in March the state general fund would collect $10.027 billion in taxes this fiscal year, the experts now expect actual collections to be slightly more than $9.902 billion.
The tax cut won praise from council Chairman Kurt Kawafuchi, who said it is a “really good policy of the administration and the Legislature to pass the tax relief.” He cited the increasing cost of essentials such as food and gasoline.
But the impact on tax collections may make it more difficult for Gov. Josh Green and state lawmakers to balance the state budget when the Legislature reconvenes in January. The amounts the state will forgo because of those tax cuts are scheduled to increase each year.
That may be creating a new normal for state government, experts said.
“Essentially, to make all of this pencil out, the state government spending — actual spending — needs to remain relatively flat for the next decade,” said economist Carl Bonham, also a member of the council.
He suggested that can be done in part by eliminating funding for vacant jobs in state government, an idea that Green has said he plans to pursue. But the council also briefly noted some hefty expenses that state government will have to pay in the near future.
Data provided by the Tax Department suggested the state must pay $537 million in hazard pay to unionized public employees who were required to work during the Covid pandemic, and the state faces major costs in the future to resolve lawsuits and help Maui recover from the wildfire.
Almost all of the public worker union contracts expire next year, and the unions certainly will be pressing for wage increases to offset the impact of inflation, Bonham said.
Green has said state budgets in the years ahead may be tight, but he expects the state will be able to pay its bills without raising taxes.
However, he has said he plans to once again ask lawmakers to impose a so-called “Green Fee” on visitors to help finance state efforts to cope with climate change.
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HONOLULU (HawaiiNewsNow) – As the United States marks 250 years as a nation today, another observance is highlighting Hawaiian sovereignty and history.
A Lā Hoʻihoʻi Ea celebration is taking place today at Iolani Palace in Honolulu, offering a Native Hawaiian perspective alongside U.S. 250th anniversary observances.
The event highlights Lā Hoʻihoʻi Ea (Sovereignty Restoration Day), which commemorates the 1843 restoration of Hawaiian Kingdom sovereignty after a brief British occupation. Although traditionally observed on July 31, related events are being held throughout the month.
Today’s program runs from 9 a.m. to 2 p.m. and includes protocol ceremonies, a historical reenactment, music, and community speakers. Musicians and speakers begin at 11 a.m. on the bandstand.
The event also includes screen-printing, and discussions on topics such as geothermal energy and RIMPAC.
Organizers say the gathering is meant to create space for Native Hawaiian voices and reflection on history, sovereignty, and the future of Hawai’i.
For more information about events click here.
Copyright 2026 Hawaii News Now. All rights reserved.
HONOLULU (HawaiiNewsNow) – A man accused of attempting to run over police officers in Kalihi was arrested Friday.
According to the Honolulu Police Department, at around 6 p.m., officers observed a man working on a vehicle that was partially blocking the roadway.
Officers said as they approached to investigate, the suspect, a 42-year-old man, quickly entered the vehicle and then allegedly drove directly toward one officer, then reversed toward a second officer.
HPD said the suspect vehicle did hit an unmarked police vehicle.
No officers were injured.
The suspect was arrested on suspicion of attempted murder in the first degree on a law enforcement officer and resisting an order to stop.
The investigation is ongoing.
Copyright 2026 Hawaii News Now. All rights reserved.
LOS ANGELES, Calif. (KCAL/KCBS/CNN) – A former California State Parks superintendent is accused of secretly filming male employees in the nude while they changed in a locker room.
“It was like getting punched in the stomach,” said California State Parks employee Matthew Dawson.
Dawson is afraid that he was one of the Bolsa Chica lifeguards or other workers allegedly recorded in a men’s locker room in Orange County by his then-boss Kevin Pearsall.
Pearsall, who has retired, was charged by the district attorney last week with eavesdropping, secretly filming and sharing some of the nude images.
“When I was naked changing into uniform in the locker room, I remember Kevin directing me to the back area. I never thought anything of it; it just seemed eccentric and now I feel he was setting me up to undress on camera,” he said.
Attorney Gloria Allred said a lawsuit has been filed on behalf of Dawson and three other State Parks employees.
Senior Park Aide Manager Richard Corey said workers were encouraged to change in and out their uniforms in the locker room before and after their shifts.
“What happened with Kevin Pearsall is the ultimate betrayal of trust. He not only was in one of the highest positions of California State Parks, but he was a sworn, post-certified peace officer, a position of trust, and you know he, he swore not only to protect the public but also us, his employees, he failed us,” said Corey.
Pearsall is accused of hiding a USB stick that was also a tiny camera in the locker room for at least a year, recording both audio and video.
An attorney representing another potential victim says 2 million images were recorded.
Pearsall was expected to be in court in August.
Copyright 2026 CNN Newsource. All rights reserved.
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