Burns seeks no boost in State taxes

Every Sunday, “Back in the Day” looks at an article that ran on this date in the Honolulu Star-Bulletin. The items are verbatim, so don’t blame us today for yesteryear’s bad grammar.

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Governor John A. Burns has sent two State budgets to the Legislature in which he proposes to spend $520 million next year without any increase in taxes.

“No increases in taxes is anticipated to finance either budget, and no tax increase is recommended,” Burns said.

The Governor Operating Budget recommends $353.9 million in spending for the year beginning July 1.

His Capitol Improvement Budget is set at $175.1 million. His proposals for building projects during the coming year are outlined in the story below.

The two budgets went to the Legislature today in preparation for the session opening February 15.

The $353.9 million figure in the operating budget represents estimated tax revenues of $207.4 million for the next fiscal year, plus $52.2 million in Federal funds and $58.5 million in special funds such as gasoline taxes, harbor and airport revenues.

It includes $28.9 million in other non-tax receipts and revenues and $7 million in surplus funds unspent during the current fiscal year which ends June 30.

Burns said $338.3 million will be required to maintain State services at current levels, another $8.3  million will finance “workload increases” and $7.3 million for expansion or improvement of existing services.

Funds spent for “workload increases” go mostly to pay automatic salary increments due government employees.

Burns said the State started out in the current fiscal year last July 1 with a General Fund surplus of $12.8 million and that tax and non-tax revenues are expected to amount to $222 million by the end of the fiscal year, June 30.

Of this total General Fund amount of $234.9 million, the State by June 30 will have spent $227.9 million, leaving a surplus of $7 million in the General Fund starting July 1.

Burns said th State this year has spent $8 million in cash for capital improvements under a partial pay-as-you-go policy rather than financing all capital improvements through the sale of bonds.