Governor Abercrombie Defends Hawaii FY 2012 Budget Plan
In the face of an $800 million-plus deficit, Governor Abercrombie submitted his administration’s budget with three essential goals:
(1) restoring basic government functions
(2) accelerating Hawaii’s economic recovery with immediate job creation
(3) reorienting government toward priorities outlined in his “New Day in Hawaii” plan to invest in human capital and build a sustainable economy
Some have criticized the Abercrombie Budget Plan for what has been characterized as “new” or “additional” spending while the state faces a large deficit.
However, as illustrated in the budget breakdown visual below, the majority of the adjustments made in the Abercrombie Budget Plan for Fiscal Year 2012 are required expenses.
Below is a breakdown of 2012 adjustments, including spending that:
- is required
- restores critical government services
- provides temporary assistance for needy families
- provides infrastructure repairs and maintenance
- invests in human capital and a sustainable economy
REQUIRED SPENDING
The majority of the adjustments made in the Abercrombie Administration Budget for Fiscal Year 2012 are required expenses.
This includes:
- Unemployment Insurance: $262 million in special funds to provide extended benefits to unemployed workers.
- Public employees benefits: $54 million for the public workers health care and retirement funds.
- Compact of Free Association migrants: $26.5 million to restore services as required by court order for citizens from the Republic of the Marshall Islands, Republic of Palau and Federal States of Micronesia.
- Interest payment on bonds: $828,000 on interest on state bonds.
- Dam safety: $1 million
RESTORING CRITICAL GOVERNMENT SERVICES
In recent years, government has been cut to a level that has crippled the ability to provide basic services that taxpayers expect.
Governor Abercrombie’s budget begins restoring positions that are the most critical, most cost-effective and most necessary for advancing our economy recovery including:
- Restoring positions at the State Historic Preservation Division that will accelerate the permitting process and will improve the life of Hawaii’s building industry
- Rebuilding the agricultural inspection system to prevent invasive species from damaging our environment and agricultural industry
- Restoring the Procurement Office to increase transparency and efficiency in government spending
TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
The budget provides $49.5 million for Temporary Assistance for Needy Families, services for Hawaii’s most needy residents.
INFRASTRUCTURE MAINTENANCE
The budget provides $22 million in necessary repair and maintenance for the state’s highways.
MOVING TOWARD A NEW DAY IN HAWAII
All departments are reorienting themselves to focus on Governor Abercrombie’s priorities outlined in “A New Day in Hawaii” to invest in human capital and build a sustainable economy.
His priorities include:
- Education: $14 million for student transportation, nursing services for special needs students, new textbooks and instructional tools, a fund to give greater access for communities to use school facilities, athletics program and tuition assistance for Hawaii National Guard
- Early Childhood: $5.5 million total including $3.2 million for Pre-School Open Doors program and $250,000 to fund the Early Learning Council
- Energy: $5.7 million to add needed resources to the Public Utilities Commission and Consumer Advocate to move forward the clean energy agenda
- Agriculture: $93,280 for the state’s irrigation revolving fund
- Culture and Arts: $4.35 million in grants and additional funding for the State Foundation on Culture and Arts
- Native Hawaiians: $5.7 million for increased support for Native Hawaiians
- Environment: $358,197 in a Clean Air Grant from the federal government
- Small Business: $260,000 in Hawaii Small Business Innovation Research grants
- Social Services: $4.1 million in increased federal funds for the Department of Human Services
- State Parks: $5 million to invest in the repair and maintenance of our state parks
- Veterans: $5.4 million for the maintenance of veteran cemeteries
Click here to read “Changing Our Ways,” Gov. Abercrombie’s Announcement of the Executive Budget
Click here for questions about the Abercrombie Budget Plan
Click here to view the full budget documents
Topics: 2011, America, balanced, budget, business, economic development, economic growth, Economy, education, employment, funding, FY 2012, Governance, government, government services, Governor Neil Abercrombie, Hawaii, health care, investment, jobs, K-12, Medicaid, middle class, moniter, monitor, New Day plan, news, property taxes, public safety, reform, responsible, revenue, society, tax collections, taxpayers, transportation, U.S., United States
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