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Federal impact on Hawaii big, rising | The Honolulu Advertiser | Hawaii's Newspaper
Posted on: Monday, April 13, 2009

Federal impact on Hawaii big, rising

By Greg Wiles
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser
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Federal government spending in Hawai'i rose by more than half a billion dollars in 2007 as it increased retirement payments, grants and procurement contracts over its 2006 expenditure total.

A new report from the Department of Business, Economic Development and Tourism shows direct expenditures in the state rose to $14.1 billion in 2007 from $13.5 billion a year earlier.

The report quantifies what's already generally known about the federal government in Hawai'i — it is one of the state's economic pillars providing employment, contracts, grants and retirement payments. The federal government spent $10,957 per resident here, making it the fifth-highest state in spending on a per capita basis.

"The federal government plays an important role in Hawai'i's economy," said the report issued by DBEDT's Research and Economic Analysis Division.

"From an income and job creation point of view, the federal government is the second-largest industry in Hawai'i, with tourism being the largest in the state."

The report notes there are a number of ways to measure the federal government's activities here besides direct expenditure totals.

For example, the federal government's activities constituted about 13.7 percent of Hawai'i's gross domestic product.

The report also showed:

  • The Federal government provided 86,318 jobs in the state, or about one-eighth of the state total.

  • The employment number included 54,528 military jobs, of which 34,838 were active duty personnel.

  • Federal employment represented 12.2 percent of total wage and salary jobs. The Department of Defense is the largest federal employer in the state, followed by the Department of Homeland Security, Department of Agriculture, Department of Veterans Affairs and Department of Interior.

  • The federal government occupied almost 60 million square feet of building space in the state.

  • Federal tax collections totaled $6.6 billion in 2007.

  • Federal government buying of goods and services amounted to $2.3 billion, most of which were military contracts.

  • Federal tax refunds amounted to $1.10 billion in 2007.

  • The total federally related population, including military and federal workers and their dependents, totaled 189,540. This was almost 15 percent of the state's population.

  • Not counting national parks, federal government owned, leased or managed 4.7 percent of the state's land in 2007.

    Most of the federal government's spending occurred on O'ahu ($11.1 billion) in 2007.

    Hawai'i County had the next highest total at $1.02 billion, followed by Maui County ($730.7 million) and Kaua'i ($511.3 million).

    Reach Greg Wiles at gwiles@honoluluadvertiser.com.

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