General fund holds surplus of $664.8M

The state ended the 2014 fiscal year June 30 with a general fund surplus of $664.8 million, down from the record $844 million of a year ago, a reflection of the state’s slow economic recovery.

"Our financial house continues to be on a solid foundation, due to strong fiscal management," Gov. Neil Abercrombie said in a news release Friday, announcing the surplus.

The state Department of Accounting and General Services determined the state ended with $1.1 billion in cash, with $394.3 million in accrued expenses, for an unreserved fund balance of $664.8 million, the Governor’s Office said. The surplus at the end of 2013 allowed for contributing $55.5 million to the Hawaii Hurricane Relief Fund and $100 million for the state’s unfunded liability for retiree health care benefits, Abercrombie said.

The administration has remained cautious in its budget approach. Earlier this month the administration restricted discretionary spending by state departments by 10 percent, or about $14 million, as a precautionary step until the economy showed measurable signs of improvement.

"Our consistent vigilance and administration in ensuring expenses are kept in check with projected revenues has once again assured Hawaii taxpayers that the fiscal condition of the state is and will remain soundly in the black," state Budget Director Kalbert Young said in a statement.

Despite the carryover balance, lawmakers have been cautious about spending in the state budget because of the slowdown in tax collections.

In May the Council on Revenues, which sets the forecast used by state lawmakers to set the budget, had predicted the year would close at minus 0.4 percent, down from zero change. The council left the forecast at 5.5 percent growth for the 2015 fiscal year.