California Journal of Politics and Policy

Hawai’i adopted a state budget that authorizes $14.1 billion in spending for the 2018 fiscalyear. Although the state economy has benefited from a robust tourism industry and increasedfederal defense spending, the state’s roads and bridges are in poor repair, and its public employeepension system is underfunded by more than $14 billion. Additionally, the high-speed rail systemthat is currently being built to serve Honolulu—which state taxes support—faces a fundingshortfall of $1.3 billion. Overall, the state’s fiscal condition is reasonably good, but Hawai’i remainsvulnerable to declines in the tourism industry and reduced federal spending.