UHERO BRIEFS ARE CIRCULATED TO STIMULATE DISCUSSION AND CRITICAL COMMENT. THE VIEWS
EXPRESSED ARE THOSE OF THE INDIVIDUAL AUTHORS.
The impact of COVID-19 and the efforts taken to contain it have led to a rapid deterioration in the state’s short- and medium-term fiscal outlooks. At its May 28 meeting, the State Council on Revenue (COR) cut its general fund tax revenue forecast for FY2020-FY2026 by almost $10 billion. The Hawaii Constitution requires the Legislature and the Governor to “consider” the COR forecast numbers in developing their budgets. If the Legislature and/or the Governor prepares a budget that exceeds the Council’s revenue estimates, they must publicly declare this fact, including the reasons for it.