August 26, 2005- Celebrating our Success- Tax Relief

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Aloha,

The state recently closed its 2005 fiscal year books with a $486 million general fund surplus, and we project a $473 million surplus for 2006.

This is a remarkable turnaround from 32 months ago.

This success is due to the hard work of Hawai`i’s taxpayers and the determination of our business community to turn the economy around. 

Our Administration also implemented strict fiscal discipline, and dedicated state employees found ways to do more with less.

We now have the opportunity invest in infrastructure, to repair and modernize schools, libraries, parks, small boat harbors, highways and University of Hawai`i facilities.

We also have the opportunity to grant significant tax relief to all Hawai`i taxpayers.

In addition, when the general fund balance exceeds 5 percent of reserves for two consecutive years, the Legislature is Constitutionally mandated to provide a tax refund to residents.  We believe our residents deserve this tax refund immediately.

Everyone in Hawai`i can take pride in this achievement.  It’s time to invest in our future and share our success with the taxpayers who made it happen.

Mahalo.  This is Governor Linda Lingle.