LOS ANGELES — Hawaii's $844 million budget surplus for fiscal 2013 means the state has entered a new phase, said Gov. Neil Abercrombie in his state of the state address.
The biennium 2013-15 budget will build on a $1.1 billion turnaround for the state since Abercrombie became governor in January 2011, he said in his speech.
"For three years, we have strategically managed our resources, endured shared sacrifices, made fiscally prudent decisions, and have seen our economy improve," Abercrombie said. "The administration's package and supplemental budget do not rely on any new taxes or fees."
He proposed to exempt seniors who make 25,000 or less filing individually, $35,000 for heads of households, and $45,000 filing jointly, from taxes impacting 25,000 of the state's elderly citizens. He also wants to raise the state minimum wage to $8.75 from $7.25 by January 2015.
The surplus will help the state achieve its goals to build up reserves to 10% of general fund revenues and pre-fund other post-employment benefit costs, he said.
"These reserves will allow us to weather possible future economic downturns and to guard against the public service cutbacks of the recent past," Abercrombie said.
The state, which has been working to reduce the number of felons housed in mainland facilities, will issue a request for proposal on a comprehensive plan to build more prison space in the state.
To advance land reservation efforts, he affirmed a decision to request authority from the state legislature to issue $40 million in general obligation bonds to preserve open space at Turtle Bay on Oahu. He also is requesting the use of GO bonds to purchase 20,000 acres of agricultural lands currently owned by the Dole Company on Oahu's North Shore.
"The financial stability we have achieved, coupled with our long-term plan to sustain it, presents us with the opportunity to act both with confidence and dispatch," Abercrombie said. "Public trust and the public interest can meet and be joined now."
