POSTED: 3:29 p.m. HST, May 29, 2012
The state Council on Revenues on Tuesday kept a 12 percent growth forecast for the fiscal year that ends in June, but lowered the revenue projection for the next fiscal year.
The council dropped the forecast for fiscal year 2013 to 5.3 percent growth, down from 7.5 percent, an estimated $110 million loss for the state.
The potential loss in tax revenue could prompt the Abercrombie administration to adjust state spending during the first half of the new fiscal year. The state's supplemental budget, which is awaiting final approval by the governor, was drafted based on the council's higher forecast.
Economists on the council cited concerns about revenue from suspending general-excise tax exemptions coming in lower than expected and uncertainties about the cost of a a solar tax credit as reasons to downgrade the forecast.
The council will make two more quarterly forecasts before the state Legislature meets again in January and considers a new two-year state budget.