Hawaii Gov. Linda Lingle announced Tuesday that because of a slowing economy and reduced state revenue forecasts, she is exercising her power to withhold some spending authority.
The Republican governor said her administration is implementing a 4% reduction on fiscal 2009 general fund appropriations for all departments. That $33.3 million reduction is in addition to a 4% budget reduction that the Democratic-controlled Legislature adopted this year.
In May, the state’s Council on Revenues revised its forecast of general fund tax revenues to 3.3% growth from 3.9% growth for fiscal 2008 and to 2% from 4% for fiscal 2009, while also lowering projections for the years between 2010 and 2014.
“Our revenues are limited,” Lingle said in a statement. “As we look toward the next round of budget preparations for fiscal biennium 2009-2011, we can expect the continuation of this cautionary stance plus other fiscal measures that are necessary to safeguard the state’s general fund.”