The recent sale of general obligation bonds will help strengthen Hawaii’s financial foundation in light of the pending federal cuts said Gov. Neil Abercrombie.
"We are not falling off any cliffs. We have climbed up. We are moving in the other direction away from the fall," Abercrombie said.
The state credits the recent sale of close to $900 million of general obligation bonds at historic low interest rates.
Budget Director Calbert Young called that a sign of financial stability for Hawaii's future.
"This transaction generated three times the demand than there was available," said Calbert Young.
That unprecedented sale, they say should help Hawaii weather the loss of federal funding should congress and the President fail to reach a compromise on a spending plan.
The governor is bracing for potential cuts of between $25 to $40 million dollars, which will be reflected in the draft budget he presents to lawmakers in about two weeks.
Social services could absorb much of that hit.
The Abercrombie administration intends to make more than just a token gesture to deal with the state's unfunded liabilities of more than $8 billion.
"We are going to come to grips and we are going to wrestle this giant to the ground," said the governor.