Council on Revenues Forecasts Increased Growth in 2014-2015

According to its latest forecast, the state Council on Revenues is projecting growth in tax collections during the next two years.

The Council issued their revised revenue forecast yesterday, projecting 8% growth for fiscal year 2014, up from its March forecast of 7.3% growth. It also projected growth of 7% in fiscal year 2015.

Those compounded increases would mean $86 million more in revenue for the state over the next two years.

However, the growth projection for tax collections in the current fiscal year, which ends on June 30, remained unchanged at 6.7%.

Economists believe the increase will come from the construction industry, not tourism, which is expected to remain flat.

Gov. Neil Abercrombie responded to the Council’s forecast, stating “Our economy is strong and appears to be getting stronger. … We expect to see continued improvement in the construction industry, real estate market, agriculture and small business activity as well the hospitality industry.

“I think the Council forecast supports the proposition that economic activity is strong and improving. These are good signs to support optimism for our residents and businesses.”