Hawaii’s budget deficit per capita ranks in top 10

The Nonprofit Quarterly’s special report, “The State We’re In” notes that the Center on Budget and Policy Priorities and the National Conference of State Legislatures have noted that almost every state faces distressing budget deficit levels – but some are significantly more distressed than others, including Hawaii.

Budget deficits not only drive cuts to nonprofit service providers but also affect the availability of government-delivered services, which can in turn create — over time or immediately — more acute levels of need among those whom nonprofits serve.

A serious state budget deficit also places pressure on cities and towns and their budgets, which creates cuts at that level as well. Additionally a serious budget deficit forces state and local government to look for additional revenue, and it may be tempting to levy additional fees and taxes on nonprofits.

Finally, extraordinarily stressed state budgets may cause untenable problems — short of organizations actually losing the money — in terms of nonprofit contracts. Late state payment of contracts, or delays in signing contracts for work that is ongoing in prompt-pay states, creates additional administrative burdens for nonprofits already stretched thin and forces nonprofits to act as unwilling lines of credit for the state.

 It’s one thing to have to cut billions from a state budget, but the amounts vary based on the state’s particular budget and program priorities. How much of the deficit burden is carried by each state’s resident may indicate something more.

Unfortunately, Hawaii has a high per-capita deficit than most states – ranked tenth highest in the nation. Regardless of the proportion of the general fund that may have to be axed, given that burden, voters are potentially reluctant to save the programs we all need.