Hawaiʻi lawmakers plan special sessions to address federal funding cuts

The budget overhaul being considered by Congress threatens about 75 percent of the state budget’s $4.6 billion in federal funds.

Some advocacy groups have started to call on the Legislature to reconsider last year’s historic income tax cut that will cost the state over $7 billion over the next seven years.

“Here at the local level we’re facing a massive challenge because of this tax cut that we have that we have put the state on this trajectory towards,” said Will White, the executive director of Hawaiʻi Appleseed Center for Economic Law & Justice, at a forum about federal cuts on Wednesday.

“I think it's going to be really important for all of us to really think creatively about how we can somehow fill those gaps, right, and look at our tax code, look at last year's tax cut—it may have to be adjusted, in fact, I'm pretty sure it's going to have to be because it I don't see how it’s sustainable moving forward.”

Todd explained that if the federal cuts are significant, the Legislature will have to be prepared to talk about all revenue options.

“What I try to tell people when it comes to that specific piece of legislation is the state passes tax code changes every single year,” he said. “It’s constantly fluid and up for discussion. And I don't think a special session would be much different in that way.“