Hawaii ranks fifth in per capita federal spending, which makes the state particularly vulnerable to attempts to deal with the nation’s deficit.
As a result, the state should be proactive and prepare for possible reductions in federal funding, said Michael Bird, senior affairs counsel for the National Conference on State Legislatures.
Bird came to Honolulu to talk to policymakers about possible impacts on Hawaii’s budget under the federal Budget Control Act of 2011, and Friday conducted an informational briefing for legislators. Since solutions to the national debt crisis are still fluid, he didn’t offer firm projections on cuts.
However, he did tell House and Senate money committee members that under the current proposal for across-the-board cuts, or sequestration, Hawaii could lose about $45 million in funding.
He said lawmakers need to explain to constituents that funding for schools, transportation, health and human services, and justice programs could see significant cuts. Programs that fall under the federal government’s discretionary spending are most at risk.
"The public generally partakes in services and structures that government provides — whether it’s public education, community hospitals and child care programs, highways, bridges," Bird explained. "Government is in the middle of everyone’s life, though they may not realize it."
Defense spending cuts could also have a significant impact on Hawaii’s budget.
Bird’s presentation brought more clarity to an issue lawmakers have already been grappling with as they work to balance a budget without knowing whether they will get the federal funding they need to operate programs that receive grants or matching funds.
"As state lawmakers we have a big question," Rep. Isaac Choy (D, Manoa) said after the hearing. "It’s guaranteed the federal government is going to be cutting funds. What programs will the state have to step in and fund or fill in the gaps?"
His colleague on the House Finance Committee, Rep. Ty Cullen (D, Waipahu-Waikele), noted that the House has already been taking a conservative approach to balancing the budget to be prepared when the cuts come.
"We’re watching every penny we spend," Cullen said.
