Abercrombie Administration
Approach to Addressing
FYs 11-13 Budget Shortfall
and
Amendments to the FB 11-13
Executive Biennium Budget
(February 22, 2011)
MULTI-YEAR FINANCIAL SUMMARY
GENERAL FUND
FISCAL YEARS 11 - 13
(in millions of dollars)
REVENUES:
Executive Branch:
Tax revenues
Nontax revenues
Judicial Branch revenues
Other
TOTAL REVENUES
EXPENDITURES
Executive Branch:
Operating
Specific appropriations
Other
Sub-total
Legislative Branch
Judicial Branch
OHA
Lapses
TOTAL EXPENDITURES
Estimated
FY 11
Estimated
FY 12
Estimated
FY 13
4,451.9
512.1
36.2
75.2
4,897.0
495.6
36.8
25.2
5,190.9
502.4
37.4
38.2
5,075.3
5,454.6
5,768.9
4,943.3
5.3
50.8
5,568.2
5.0
180.7
5,754.0
5.0
258.5
4,999.3
5,753.9
6,017.5
32.2
130.7
2.5
(65.0)
5,099.7
32.2
141.1
2.5
(65.0)
5,864.7
32.2
143.6
2.5
(65.0)
6,130.8
REV. OVER (UNDER) EXPEND.
(24.4)
(410.1)
(361.8)
CARRY-OVER (DEFICIT)
Beginning
Ending
(22.2)
(46.6)
(46.6)
(456.7)
(456.7)
(818.5)
Adjustments needed to balance fin. plan
(71.6)
(410.1)
(361.8)
25.0
25.0
25.0
Ending Balance
2
Summary of Abercrombie Approach to Addressing FYs 11-13
Budget Shortfall
FY11
Shortfall
FY12
FY13
(71.6)
(410.1)
(361.8)
plus: Proposed Revenue Measures
20.0
232.8
277.7
plus: Proposed Expenditure Measures
(5.3)
(192.7)
(211.9)
(46.3)
15.4
127.8
COR revised estimate of 3% growth
45.6
49.1
51.9
Utilize Rainy Day Fund (1)
46.0
0.0
0.0
Utilize HHRF (2)
0.0
91.6
42.0
91.1
0.0
51.9
Balance - Excess
45.3
106.5
179.7
Subtotal - Excess (Shortfall)
Other Potential Revenues:
(1) Current available balance of $46 million
(2) Current balance of $117 million; Required minimum of $75 million for reinsurance purposes
3
Proposed Revenue Measures
FY11
FY12
FY13
HB 1092 & SB 1319
Repealing state tax deduction
Exemption for Fed AGI threshold
0.0
0.0
94.0
(30.3)
94.0
(15.0)
State tax on pension income
Exemption for Fed AGI threshold
0.0
0.0
157.0
(44.7)
157.0
(44.7)
Repeal exclusion of royalties from penalties
0.0
2.5
2.5
TAT and TOT enhancements:
Increase rate on timeshare properties
0.0
26.6
31.2
0.0
20.0
20.0
0.0
25.0
50.0
HB 1019 & SB 1246
Reduces GF amounts and increases SF
amounts from barrel tax
0.0
(13.2)
(13.2)
HB 1089 & SB 1316
Annual federal tax conformity measure
0.0
(3.0)
(3.0)
HB 1060 & SB 1287
Funding of Chief Information Officer position
0.0
(1.0)
(1.0)
HB 1084 & SB 1309 Lt. Governor SF
0.0
(0.1)
(0.1)
20.0
0.0
0.0
20.0
232.8
277.7
HB 1062 & SB 1289
Raise alcohol tax by 50%
Establish a soda tax
State share of Medicaid settlement
Total Proposed Revenue Measures
4
Proposed Expenditure Measures
FY11
9.6
FY12
28.5
FY13
28.5
Reduce Medicaid services
(Budget Message)
0.0
25.0
50.0
Labor savings (CB negotiations)
0.0
88.2
88.2
ERS - Increased contributions
(HB 1037 & SB1264)
0.0
0.0
(15.0)
Base pay amendment to AFC calculation
(HB 1042 & SB 1269)
0.0
13.2
13.2
EUTF - Eliminate Medicare Part
0.0
41.7
46.8
Current on ERS only (Budget Message)
0.0
0.0
26.2
Health prevention and other health programs
(HB 1062 & SB 1289)
0.0
(10.0)
(20.0)
(4.3)
6.1
(6.0)
0.0
0.0
0.0
5.3
192.7
211.9
Reduce TANF services
(HB 1066 & SB 1293, Budget Message)
B reimbursements (HB 1041 & SB 1268)
Other adjustments
Redirect monies from HTA to State Parks
($6M) and SFCA ($4M) U funds
Total Proposed Expenditure Measures
5
Overview of Abercrombie
FB 11-13 Operating Budget
Abercrombie FB 11-13 Operating Budget
Statewide Totals by Means of Financing
FY 2012
FY 2013
Trust Funds,
$2.0, 0%
Revolving Funds,
$4.3, 1%
Federal Funds,
$28.3, 6%
Inter-departmental
Transfers,
$11.0, 2%
General Funds,
$133.8, 27%
Trust Funds,
$1.5, 1%
Inter-departmental
Transfers,
Revolving Funds,
$11.1, 4%
$3.8, 1%
Federal Funds,
$(17.9), 7%
Special Funds,
$78.9, 29%
Special Funds,
$311.4, 64%
Total $490.8 M
General Funds,
$160.4, 58%
Total $237.8 M
7
Abercrombie FB 11-13 Operating Budget
Statewide Totals by Department - All Funds
FY 2012
FY 2013
OTHER, $5.9 , 2%
PSD, $4.3, 1%
HHL, $6.8, 1%
UOH, $10.0, 2%
AGS, $11.4, 2%
EDN/LIB, $4.2, 1%
HTH/HHSC, $4.2, 2%
PSD, $4.7, 2%
HMS, $(10.4), 4%
HTH/HHSC, $4.2, 1%
AGS, $6.0, 2%
OTHER, $5.5 , 1% BED, $6.5 , 3%
HHL, $6.8, 3%
DEF, $9.4, 4%
LNR, $12.7, 3%
DEF, $13.7, 3%
TRN, $24.6, 5%
BUF,
$95.3, 37%
UOH, $10.0, 4%
BUF,
$61.4, 13%
LNR, $11.6, 4%
HMS, $68.7, 14%
Total $490.8 M
LBR,
$263.3, 53%
EDN/LIB,
$27.1, 10%
TRN, $60.7, 23%
Total $237.8 M
8
Abercrombie FB 11-13 Operating Budget
Statewide Totals by Department - General Fund
FY 2012
FY 2013
PSD, $2.1, 1%
GOV, $1.6, 1%
PSD, $1.6, 1%
LNR, $2.1, 2%
HTH, $2.3, 2%
HTH, $2.3, 1%
OTHER, $4.1, 3%
BED, $2.3, 1%
LNR, $2.0, 1%
OTHER, $4.5, 3%
DEF, $2.4, 1%
BED, $2.5, 2%
DEF, $6.8, 5%
BUF, $54.9, 41%
UOH, $10.0, 6%
UOH, $10.0, 7%
HMS, $19.6, 12%
HMS, $47.8, 36%
Total $133.8 M
EDN/CS,
$23.6, 16%
BUF, $91.5, 58%
Total $160.3 M
9
Summary of Abercrombie FB 11-13
General Fund Operating Budget
Items previously included in GF financial plan but not included in base budget:
FY 2012
FY 2013
COFA client Medicaid funding
13.2
13.2
TANF benefits & services (revised amount)
49.5
49.5
0.0
36.8
54.3
54.3
117.0
153.8
(25.0)
(50.0)
92.0
103.8
Repay deferred FY 09 ERS contribution (revised amount)
Increased full year EUTF contributions per FY 11 agreement
Total financial plan items
Items not included in either GF financial plan or base budget:
Medicaid benefit reduction
Total other than initiatives
10
Summary of Abercrombie FB 11-13
General Fund Operating Budget (continued)
Abercrombie Initiatives:
FY 2012
FY 2013
DAGS -- data center operations, procurement & reapportionment
0.9
0.8
DOA -- Agri research statisticians, planner & Irrigation System
Revolving Fund supplement
0.2
0.2
AG -- position funding
0.9
0.9
B&F -- various positions, treasury consultant & ARRA oversight
(FY 12 only)
0.7
0.4
DBEDT -- restoration to support economic development
2.5
2.3
DOD -- maintenance costs, emergency management support &
juvenile justice & delinquency program support
6.8
2.4
DOE -- student & althletics transportation, nursing services,
Early Learning Council & Charter Schools
0.7
23.6
GOV & LG -- restore full-year funding
1.9
1.8
11
Summary of Abercrombie FB 11-13
General Fund Operating Budget (continued)
FY 2012
FY 2013
2.3
2.3
10.1
7.0
DLNR -- Conservation & resource enforcement, historic
preservation & dam safety
2.1
2.0
PSD -- Kapolei Court Complex deputy sheriffs, partially funded
ACO's, re-entry work furlough program & vehicle replacement
1.6
2.1
TAX -- MTC audit fee, positions to maintain tax computer
systems & Tax Review Commission (FY 12 only)
1.1
0.7
UH -- community colleges, UH Hilo & strategic outcomes
10.0
10.0
Total Initiatives
41.8
56.5
Grand Total Operating
133.8
160.3
DOH -- Early Intervention Program & civil union program costs
DHS -- Pre-School Open Doors Program, new Medicaid eligibility
system & other program support
12
Overview of Abercrombie
FB 11-13 CIP Budget
Abercrombie FB 11-13 CIP Budget
Statewide Totals by Means of Financing
FY 2012
Revenue Bonds,
$72.4, 6%
Special Funds,
FY 2013
County/Private
Contrib.,
$9.3, 1%
$103.9, 9%
Revenue Bonds,
$44.6, 9%
Special Funds,
$101.2, 20%
G.O./G.O.R.
Bonds, $247.8,
49%
Federal Funds,
$196.2, 16%
G.O./G.O.R. Bonds,
$824.3, 68%
Total $1,206.2 M
Federal Funds,
$109.4, 22%
Total $503.0 M
14
Abercrombie FB 11-13 CIP Budget
Statewide Totals by Department - All Funds
FY 2012
FY 2013
AGR, $9.9, 2%
LNR, $26.7, 2%
HMS, $15.7, 1%
OTHERS, $21.5, 2%
HHL, $36.3, 3%
BEDT, $46.1, 4%
DEF, $51.7, 4%
HTH/HHSC, $17.0, 3%
OTHERS, $15.1, 3%
EDN/LIB,
$98.0, 20%
LNR, $26.3, 5%
BUF,
$489.0, 41%
AGS, $63.2, 5%
AGS, $30.0, 6%
HHL, $35.0, 7%
HTH/HHSC, $71.0, 6%
HMS, $35.3, 7%
UOH, $80.0, 7%
EDN/LIB,
$98.0, 8%
TRN,
$207.0, 17%
Total $1,206.2 M
DEF,
$56.3, 11%
TRN,
$82.1, 16%
BUF,
$98.0, 20%
Total $503.0 M
* The $489 million requested in FY 2012 and the $98 million for FY 2013 in the Department of Budget and Finance will be transferred to the State
Educational Facilities Improvement Special Fund and spent by the Department of Education, pursuant to Sections 36-32 and 237-31, HRS.
15
Abercrombie FB 11-13 CIP Budget
Statewide Totals by Department - G.O./G.O.R. Bonds
FY 2012
HMS, $15.7, 2%
HHL, $16.2, 2%
FY 2013
AGR, $10.3, 1%
DEF, $8.1, 1%
PSD, $5.5, 1%
LNR, $26.2, 3%
BED, $42.3, 5%
DEF, $5.2, 2%
AGR, $5.9, 2%
BED, $12.1, 5%
HHL, $15.0, 6%
PSD, $3.0, 1%
BUF,
$98.0, 40%
AGS, $60.0, 7%
HTH/HHSC, $17.0, 7%
HTH,
$71.0, 9%
LNR, $26.3, 11%
UOH,
$80.0, 10%
Total $824.3 M
BUF, $489.0, 59%
AGS,
$30.0, 12%
HMS,
$35.3, 14%
Total $247.8 M
* The $489 million requested in FY 2012 and the $98 million for FY 2013 in the Department of Budget and Finance will be transferred to
the State Educational Facilities Improvement Special Fund and spent by the Department of Education, pursuant to Sections 36-32 and
237-31, HRS.
16
Summary of Abercrombie FB 11-13
GO/GOR CIP Budget
FY 2012
FY 2013
DOA -- various irrigation system & watershed improvements.
10,260,000
5,900,000
DAGS -- State facilities & Aloha Stadium
health/safety/maintenance improvements, energy conservation
improvements, Kamamalu building & Washington Place
renovation.
60,000,000
30,000,000
B&F -- reauthorize lapsed GO bonds for SEFI encumbrances*
390,965,000
0
DBEDT -- Rental Housing Trust Fund, Iwilei senior residence,
FTZ renovations & Kalaeloa infrastructure
42,330,000
12,100,000
DOD -- National Guard facilities and armories
renovation/improvements & Veteran’s Cemetery improvements.
8,060,000
5,234,000
98,000,000
98,000,000
DOE -- Statewide facility improvements, Ewa Makai Middle
School, Keeau Middle School classroom building, McKinley High
fire safety improvements & Kapolei II Elementary School. *
* NOTE: DOE SEFI appropriations are technically SF appropriations; however, source of SEFI is GO
bonds which are authorized in B&F. To avoid double counting, amounts for B&F in this table reflect only
reauthorizations of lapsed GO funding for SEFI encumberances; new authorizations are shown in DOE.
17
Summary of Abercrombie FB 11-13
GO/GOR CIP Budget (continued)
FY 2012
FY 2013
DHHL -- water systems at Makuu, North Kona, & Honokowai, &
Papakolea sewer system.
16,250,000
15,000,000
DHS -- improvements at Kuhio Park Terrace, Mayor Wright
Homes, Palolo Valley Homes, Lanakila Homes, Hale Laulima &
Puahala Homes.
15,670,000
35,300,000
DOH -- improvements at Hawaii State Hospital, Waimano Ridge
& other DOH facilities.
26,182,000
1,303,000
HHSC -- electronic medical records system & hospital
improvements.
44,839,000
15,667,000
DLNR -- rockfall & flood mitigation & improvements to State
parks, boating/ocean recreation facilities & forest/outdoor
recreation facilities.
26,250,000
26,300,000
PSD -- correctional facilities renovations, Kulani Correctional
Center exploratory well & planning correctional facility
development.
5,500,000
3,000,000
80,000,000
0
UH -- capital renewal & deferred maintenance & Leeward
Community College’s Education & Innovation Instructional
Facility.
Total GO/GOR CIP 824,306,000 247,804,000
18
Summary of Abercrombie FB 11-13 Federal Fund &
Revenue Bond Fund CIP Budget
FY 2012
FY 2013
Federal Funds:
DOA -- agricultural water systems
5,700,000
4,000,000
DBEDT -- FTZ import-export incubator
3,000,000
0
DOD -- National Guard facilities & armories
43,683,000 51,036,000
DHHL -- homestead projects & improvements
20,000,000 20,000,000
DLNR -- boating facilities
500,000
0
DOT -- airport & highway improvements
123,331,000 34,396,000
Total 196,214,000 109,432,000
Revenue Bonds:
DOT -- airport improvements
DOT -- highway improvements
Total
38,992,000
33,445,000
72,437,000
35,488,000
9,079,000
44,567,000
19