Hawaiʻi COVID-19 Response

Policy and spending decisions to mitigate the impacts of the pandemic on Hawaiʻi and its people.

March 2020

Executive Summary

In the midst of concern over COVID-19, we should remember that Hawaiʻi has repeatedly dealt with economic setbacks and successfully stimulated recovery over the past century. We need to focus on investing in programs and policies that will address near-term financial shocks and make Hawaiʻi a better place in the long-run.

While the constantly changing COVID-19 situation is unprecedented, experience tells us we should resist ill-advised calls for budget cuts. In fact, when private sector businesses falter, government must take action to stimulate the economy. This can happen only when we ensure that families have enough money to spend and keep it circulating throughout the economy.”

Since this is a public health issue, not just an economic one, it’s especially important to ensure that workers can afford to stay home and that our government systems support social distancing and COVID-19 testing and treatment over the course of the next several months. The Hawaiʻi Budget & Policy Center has released a series of policy briefs and funding directions the federal, state and counties should take now.

  1. Hawaiʻi: Strengthening Economic Policies is an overview summarizing both key strategies to help people and the economy, and cautions about budget-cutting decisions.

  2. Lessons and Resources: A Summary of Federal Action that Ended the Great Recession lists the tax reduction and spending actions taken by the federal government to stimulate the economy. It also shows how economists rated those actions in terms of “bang for the buck.”

  3. Strengthen the Safety Net: Relieve Families, Stimulate the Economy identifies top strategies to help low-income residents make ends meet if wages are cut and children are out of school. It addresses food security programs (SNAP, meals at school, and food banks), refundable tax credits such as the Earned Income Tax Credit, expanding Med-QUEST eligibility to ensure that health coverage isn’t an obstacle to testing and treatment, and using Temporary Assistance for Needy Families (TANF) reserves to help more low-income families now.

  4. Infrastructure Investment: Improve Hawaiʻi’s Future, Stimulate the Economy reminds policymakers that putting money into capital projects puts people to work. Hawaiʻi has a long list of public works projects—affordable housing, water and wastewater facilities, transportation, and shoreline improvements, to name a few—and there isn’t a better time for low-interest borrowing and affordable contracts.

  5. Raising Revenue Equitably explores eight progressive, recession-appropriate revenue options capable of bringing in more than $3 billion into state coffers. Good public policy can help us minimize damaging spending cuts as well as keep the economy afloat now and ready for a better future.

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