Managing Public Funds as a Public Trust

Governor David Ige with Sharon Moriwaki, PPC Associate Director at College of Social Sciences, UHM

 

Governing the right way also means managing public funds as a public trust.  That’s especially true when it comes to taking care of our debts and obligations.

The state’s obligation to the public pension and health benefit funds represent two of our biggest fixed expenses.  We need to find better ways to meet this challenge.  Their continued growth is a challenge that will remain with us for many years.  We must find ways to do better in meeting this challenge so as not to burden future generations of taxpayers.

A PUBLIC TRUST

Governing the right way also means managing public funds as a public trust.  That’s especially true when it comes to taking care of our debts and obligations.

The state’s obligation to the public pension and health benefit funds represent two of our biggest fixed expenses.  We need to find better ways to meet this challenge.  Their continued growth is a challenge that will remain with us for many years.  We must find ways to do better in meeting this challenge so as not to burden future generations of taxpayers.

Last year, we changed the way in which we funded those obligations that will save hundreds of millions of dollars in the future.  In the past, the state’s contributions to the fund were made in installments that spread over 12 months.  By consolidating those contributions into a single payment at the beginning of each fiscal year, we will realize contributions or taxpayer savings of up to half a billion dollars over the next 20 years.

Furthermore, my supplemental budget request to the Legislature includes paying 100 percent of the annual required contributions rather than 60 percent for the next two fiscal years.  If authorized, this will further save more than $300 million in required contributions over the next 20 years.


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  • published this page in News 2016-01-25 17:09:31 -1000