Hawaii tax collections rose by 2.66 percent in the 2010 fiscal year compared to the previous fiscal year, behind only North Dakota, North Carolina, Nevada and California.

Despite the increase, Hawaii is still facing projected budget shortfalls of nearly $1 billion over the next two fiscal years.

Nationwide, the Census said state government tax collections dropped 2 percent last fiscal year.

Hawaii was one of 11 states to report increases over the previous year’s total tax collections, up from five states in 2009.