10 things you should know about the State Budget in 15 minutes

$24 billion over 2 years

Interactive treemap: http://kanuhawaii.org/code/treemap.tpl

$4,045

$1,576

$1,216

$663

$406 $195 $100 $30 $5

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500 Some Biennium Budget Items ($ millions)

federal funds

How we rank: taxes(as a % of total collections)

STATE TOTAL TAX % GSP RANK SALES & EXCISE PERS. INCOME CORP. INCOME

Alaska 10.8% 1 1 1 1Vermont 10.4% 2 2 2 2North Dakota 9.5% 3 3 3 3West Virginia 7.7% 4 4 4 4Arkansas 7.5% 5 5 5 5Hawaii 7.3% 6 6 6 6Maine 7.1% 7 7 7 7Mississippi 6.9% 8 8 8 8Minnesota 6.7% 9 9 9 9Wyoming 6.5% 10 10 10 10New Mexico 6.3% 11 11 11 11Kentucky 6.2% 12 12 12 12Michigan 6.1% 13 13 13 13Montana 6.1% 14 14 14 14Wisconsin 6.0% 15 15 15 15California 6.0% 16 16 16 16New York 5.9% 17 17 17 17Connecticut 5.8% 18 18 18 18Massachusetts 5.6% 19 19 19 19Idaho 5.6% 20 20 20 20Pennsylvania 5.6% 21 21 21 21New Jersey 5.6% 22 22 22 22Rhode Island 5.5% 23 23 23 23Indiana 5.4% 24 24 24 24Maryland 5.3% 25 25 25 25Kansas 5.2% 26 26 26 26Ohio 5.2% 27 27 27 27North Carolina 5.1% 28 28 28 28United States 5.1% 29 29 29 29Oklahoma 5.0% 30 30 30 30Alabama 5.0% 31 31 31 31Washington 4.9% 32 32 32 32Nevada 4.9% 33 33 33 33Iowa 4.9% 34 34 34 34South Carolina 4.6% 35 35 35 35Delaware 4.6% 36 36 36 36Nebraska 4.4% 37 37 37 37Utah 4.4% 38 38 38 38Ilinois 4.4% 39 39 39 39Florida 4.3% 40 40 40 40Tennessee 4.2% 41 41 41 41Arizona 4.2% 42 42 42 42Oregon 4.2% 43 43 43 43Virginia 4.1% 44 44 44 44Missouri 4.1% 45 45 45Georgia 3.8% 46 46 46New Hampshire 3.7% 47 47Colorado 3.6% 48Louisiana 3.6% 49South Dakota 3.4% 50

How we rank: spending(spending as % of total budget)

PUBLIC SCHOOLS HIGHER ED SOCIAL SERVICES MEDICAID CORRECTIONS TRANSPORTATION1 1 1 1 1 12 2 2 2 2 23 3 3 3 3 34 4 4 4 4 45 5 5 5 5 56 6 6 6 6 67 7 7 7 7 78 8 8 8 8 89 9 9 9 9 9

10 10 10 10 10 1011 11 11 11 11 1112 12 12 12 12 1213 13 13 13 13 1314 14 14 14 14 1415 15 15 15 15 1516 16 16 16 16 1617 17 17 17 17 1718 18 18 18 18 1819 19 19 19 19 1920 20 20 20 20 2021 21 21 21 21 2122 22 22 22 22 2223 23 23 23 23 2324 24 24 24 24 2425 25 25 25 25 2526 26 26 26 26 2627 27 27 27 27 2728 28 28 28 28 2829 29 29 29 29 2930 30 30 30 30 3031 31 31 31 31 3132 32 32 32 32 3233 33 33 33 33 3334 34 34 34 34 3435 35 35 35 35 3536 36 36 36 36 3637 37 37 37 37 3738 38 38 38 38 3839 39 39 39 39 3940 40 40 40 40 4041 41 41 41 41 4142 42 42 42 42 4243 43 43 43 43 4344 44 44 44 44 4445 45 45 45 45 4546 46 46 46 46 4647 47 47 47 47 4748 48 48 48 48 4849 49 49 49 49 4950 50 50 50 50 50

How we rank: Debt & Future Liabilities as % of GSP

STATE DEBT+UFL %GSP RANK

Connecticut 17% 1llllnols 16% 2Hawaii 16% 3Kentucky 16% 4Mississippi 14% 5New Mexico• 14% 6Rhode Island 13% 7Massachusetts 13% 8New Jersey 12% 9West Virginia 12% 10Maine 10% 11Louisiana 10% 12Maryland 10% 13Kansas 8% 14Alaska 8% 15Ar izona• 7% 16California 7% 17Arkansas• 7% 18Alabama 6% 19Oklahoma 6% 20Pennsylvania 6% 21Vermont 6% 22New York 6% 23Indiana 5% 24South Carolina 5% 25Oregon 5% 26Montana 5% 27Delaware 5% 28Wisconsin 4% 29Utah 4% 30NorthDakota• 4% 31Missouri 4% 32Colorado• 4% 33Virginia 4% 34Georgia 4% 35Florida 4% 36Texas 3% 37Ohio 3% 38Michigan 3% 39Nevada 3% 40New Hampshire 3% 41Wyoming• 3% 42Minnesota 3% 43Idaho 3% 44NorthCarolina 3% 45Nebraska* 2% 46Tennessee 2% 47Iowa 1% 48Washington 5% 49South Dakota 1% 50

“…within two years, the State will face an ever-growing budget gap. Unless action is taken now, the shortfall will be overwhelming and would require ever more burdensome measures that would negatively affect our state...”

“The annual budget shortfall beginning in FY 2014 would be $370 million.”

Budget Today

Benefits

Medicaid

Health

Budget in 10 years

Recommendations of the Tax Review Commission

Governor & Departments Submit Proposed Budget

House takes first crack at revisions

Senate makes its own revisions

Senate + House Conference Committee compromise

Submitted to Governor for signature and $ release

Jan Feb Mar Apr May Jun

10 things recapped1. Most of our money comes from the General Excise Tax on all goods and

services; little from corporate income taxes2. In most areas we spend less or about the same as other states, e.g.,

education, health, transportation. Social Services is an exception (we spend more than other states).

3. Comparatively small parts of the budget are devoted to things we may consider really important like the environment and young kids

4. We have a big future challenge in our debt and unfunded promises to pension and health benefits for retired public workers

5. It’s a bigger problem for us than most other states because of our longer life expectancy and our larger commitment to public workers

6. Increases in retirement and health benefit spending plus increasing Medicaid costs are predicted to drive annual deficits of $300M per year starting in the next biennium

7. The Governor has proposed his budget and the Legislature is now considering it (first House then Senate)

8. You can make an impact by contacting the chairs of the House Finance and Senate Ways & Means Committees and sharing your views on where you wish we would save and spend

9. If you live in the districts of the Chairs of these committees, you have a special responsibility to understand the budget

…

10. Take action…

(a) take 5 min to play with the interactive budget map:www.kanuhawaii.org/code/treemap.tpl

(b) identify 1 thing you would invest more in and 1 thing you’re willing to make a sacrifice

(c) email your views to chairs of the budget committees:Rep. Sylvia Luke (repluke@capitol.hawaii.gov) Sen. David Ige (sendige@capitol.hawaii.gov)

Volunteer to help Kanu educate communities by going door-to-door, making presentations, or sharing content online with friends: CherilynInouye, Community Organizer, cherilyn@kanuhawaii.org