State among three lowest spenders in 1990s
By Kevin Dayton
Advertiser Capitol Bureau Chief
State spending in Hawai'i in the 1990s grew more slowly than spending by almost every other state in the nation, according to a new study by the conservative American Legislative Exchange Council.
The study found Hawai'i state spending grew by about 19 percent from 1990 to 2000. During those years, the state's general treasury budget grew from $2.68 billion to $3.2 billion.
State spending in Wyoming also grew by 19 percent, which was the slowest spending growth in the nation.
Hawai'i's increase in state spending lagged behind inflation in the 1990s, with the state consumer price index growing by more than 25 percent from 1990 to 1999, according to statistics from the state Department of Business, Economic Development & Tourism.
A spokeswoman for Gov. Ben Cayetano said the administration's calculations show state spending grew even more slowly during the last half of the decade — by only 1 percent from 1995 to 2000.
"The report underscores just how careful and prudent we have been with the people's money and how we have truly reduced the size of government," the governor's office said.
The only state that was more tight-fisted than Hawai'i was Alaska, where state spending actually declined by 8 percent in the 1990s, according to the ALEC study called "Crisis in State Spending: A Guide for State Legislators."
Texas led the nation, increasing its budget from $14.6 billion in 1990 to $56.3 billion in 2000, according to the report. That was an increase of more than 283 percent.
Chris Atkins, editor of the report and the council's national director of the tax and fiscal policy task force said Hawai'i limited the growth in state spending far better than most other states.
All but nine states increased their budgets by more than 50 percent during the 1990s, prompting ALEC to recommend that states take steps such as cutting taxes to spur economic growth, limiting government spending and privatizing government functions. ALEC membership includes 2,400 state lawmakers from across the nation, including three Hawai'i Republicans.
Reach Kevin Dayton at kdayton@honoluluadvertiser.com or 525-8070.
