Gov. Abercrombie announces immediate measures to battle budget shortfall

HONOLULU—Governor Neil Abercrombie issued a statement Tuesday regarding the Council on Revenues revision of its revenue projections. The revised projections have added another $93 million to the previous projected deficit for the 2011 fiscal year.

“To meet the immediate shortfall over the next three months, we will enforce a ten percent spending cut for all departments. We will also use the Rainy Day Fund, hurricane relief, and special funds,” he said.

“To meet the immediate shortfall over the next three months, we will enforce a 10 percent spending reduction for all departments. We will also use the Rainy Day, Hurricane Relief and special funds.

“For future years, the plan we put forward in February still stands. Our plan will add $1.3 billion to Hawaii’s economy—creating jobs and building critical infrastructure like schools, clean energy projects, and public facilities. Our plan restores critical government functions to help local businesses and invest in education. The plan balances the budget by making changes to the tax code, labor savings, and spending cuts.

“The people will not tolerate the status quo. They want jobs, better schools, energy and food produced here.”