State forecasts steady tax revenue growth

Hawaii's general fund should see a small increase this year, with steady 6 percent growth over most of the next decade, according to the latest, Sept. 8, projection from the state Council on Revenues, which means things may have finally turned around.

Preliminary calculations predict revenue growth of 2 percent in the current 2011 fiscal year, which began July 1. The council sees growth of 10 percent in the 2012 fiscal year, and 6 percent from 2013 through 2017.

The council previously projected 6.2 percent for this fiscal year, but that's because it included the delayed payouts of individual tax refunds. Council Chairman Paul Brewbaker said the projection is the same once the delay is factored out.

"The underlying expectation of economic recovery seems to be playing out as we expected," Brewbaker said. "The re-acceleration of the economy locally has occurred."

State Rep. Marcus Oshiro, chairman of the House Finance Committee, said tourism numbers support the council's optimistic projection, but said it's "not time to pop open the champagne yet" and that the Legislature has been cautious in its funding.