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Hawaii passes $28B budget amid fear of federal funding cuts

March 15, 2017 - 1:55pm

HONOLULU — The Hawaii House passed the state’s $28 billion two-year budget at a time when state revenue projections are falling.

There’s also fear about potential cuts in federal funding to Hawaii.

The state receives about $3 billion a year from federal sources, which is 20 percent of its budget.

Republican Rep. Gene Ward said Wednesday Hawaii should not assume it will get the same level of federal funding.

Gov. David Ige submitted his budget plan in December, which included $5.6 billion in Medicaid spending over two years.

Overall, the House cut about $500 million from the governor’s proposed two-year budget after state economists said tax revenues are expected to come in lower than expected.

House Finance Committee Chairwoman Sylvia Luke says the financial picture doesn’t look as rosy as originally portrayed.

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