POSTED: 11:58 a.m. HST, Mar 7, 2012
LAST UPDATED: 12:09 p.m. HST, Mar 7, 2012
The state Council on Revenues today upgraded its forecast for revenue growth to 12 percent for the fiscal year that ends in June, up from 11.5 percent.
The council, citing an improving economy, also increased the forecast for fiscal year 2013 to 7.5 percent, up from 6.5 percent.
The rosier forecast will give Gov. Neil Abercrombie and state lawmakers looking at the two-year state budget and six-year financial plan some breathing room. The council's quarterly forecasts are used by the governor and lawmakers when drafting the state budget.
"What we're seeing is a good solid economy in the tourist section, particularly in Waikiki, the hotels and that kind of thing," said Richard Kahle, the council's chairman. "The rest of the economy, once the tourism industry starts going, it drags all businesses with it, and that's what's going on."