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Council On Revenues Projects Hawaii Tax Collections Will Be Less Than Expected

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Council On Revenues Projects Hawaii Tax Collections Will Be Less Than Expected


The forecast also said Hawaii is gradually recovering from the tourism slump triggered by last year’s Maui wildfires, while the construction industry is booming.

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.

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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.

Tax cuts included in the state budget approved by Hawaii lawmakers earlier this year were widely praised, but may make it more difficult for lawmakers to balance the budget in the future. (Chad Blair/Civil Beat/2024)

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.

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“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.

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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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Hawaii County Surf Forecast for March 04, 2026 | Big Island Now

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Hawaii County Surf Forecast for March 04, 2026 | Big Island Now


Forecast for Big Island Windward and Southeast


Shores Tonight Wednesday
Surf Surf
PM AM AM PM
North Facing 2-4 2-4 2-4 2-4
East Facing 3-5 4-6 4-6 5-7
South Facing 1-3 1-3 1-3 1-3
TONIGHT
Weather Mostly cloudy. Numerous showers.
Low Temperature In the upper 60s.
Winds East winds 5 to 10 mph.
Tides
Hilo Bay High 1.9 feet 03:26 PM HST.
Low -0.1 feet 09:20 PM HST.
High 2.4 feet 03:40 AM HST.
WEDNESDAY
Weather Partly sunny. Numerous showers.
High Temperature In the upper 70s.
Winds East winds 10 to 15 mph.
Tides
Hilo Bay Low -0.1 feet 10:00 AM HST.
High 2.0 feet 04:04 PM HST.
Sunrise 6:37 AM HST.
Sunset 6:27 PM HST.

Forecast for Big Island Leeward


Shores Tonight Wednesday
Surf Surf
PM AM AM PM
West Facing 2-4 2-4 2-4 1-3
South Facing 1-3 1-3 1-3 1-3
TONIGHT
Weather Mostly sunny until 6 PM, then mostly
cloudy. Hazy.
Low Temperature In the upper 60s.
Winds West winds around 5 mph early in the
afternoon, becoming light and variable.
Tides
Kona High 1.5 feet 04:04 PM HST.
Low -0.1 feet 09:57 PM HST.
High 1.9 feet 04:18 AM HST.
Kawaihae High 1.4 feet 04:36 PM HST.
Low -0.1 feet 10:20 PM HST.
High 1.9 feet 04:38 AM HST.
WEDNESDAY
Weather Partly sunny. Hazy.
High Temperature In the mid 80s.
Winds Light and variable winds, becoming west
around 5 mph in the afternoon.
Tides
Kona Low -0.1 feet 10:37 AM HST.
High 1.6 feet 04:42 PM HST.
Kawaihae Low -0.2 feet 11:01 AM HST.
High 1.6 feet 05:13 PM HST.
Sunrise 6:41 AM HST.
Sunset 6:31 PM HST.

The current moderate northwest swell will continue a gradual decline through Thursday. A small west-northwest swell will arrive on Friday and hold through the weekend, followed by a small north-northwest swell early next week. Choppy east shore surf will build to near seasonal average by Wednesday as trade winds strengthen over and east of the islands. Little change is expected along east facing shores through the weekend, followed by a possible decline early next week if winds veer southerly. Surf along south facing shores will remain small to tiny through the weekend, and some islands may an increase in choppy surf if southerly winds develop early next week.

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NORTH EAST

am        pm  

ARTICLE CONTINUES BELOW AD
ARTICLE CONTINUES BELOW AD

Surf: Minimal (ankle high or less) surf.

Conditions: Semi choppy with ESE winds 5-10mph in the morning increasing to 10-15mph in the afternoon.

NORTH WEST

am        pm  

Surf: Minimal (ankle high or less) surf.

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ARTICLE CONTINUES BELOW AD

Conditions: Clean in the early morning with ESE winds less than 5mph. Bumpy/semi bumpy conditions move in during the morning hours with the winds shifting W 5-10mph.

WEST

am        pm  

Surf: Minimal (ankle high or less) surf.

Conditions: Semi glassy in the morning with N winds less than 5mph. Bumpy/semi bumpy conditions for the afternoon with the winds shifting WNW 5-10mph.

ARTICLE CONTINUES BELOW AD

SOUTH EAST

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am        pm  

Surf: Minimal (ankle high or less) surf.

Conditions: Light sideshore texture in the morning with NE winds 10-15mph. This becomes Sideshore texture/chop for the afternoon.

Data Courtesy of NOAA.gov and SwellInfo.com



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Hawaii delegation continues to blast U.S. attack on Iran | Honolulu Star-Advertiser

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Hawaii delegation continues to blast U.S. attack on Iran | Honolulu Star-Advertiser




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Blood moon to dazzle Hawaii skies tonight

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Blood moon to dazzle Hawaii skies tonight

























Blood moon to dazzle Hawaii skies tonight | Local | kitv.com

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