A forecast issued Tuesday night drops Hawaii's economic outlook from slow growth to no growth.
In January the Council on Revenues projected growth of our state economy at 3.3 percent, but now they dropped that number to zero. That means there is going to be just over $166 million less for the state to spend than previously expected.
One of the key factors in the council's decision is because visitor spending has slowed down, but a council member says there is no need to make rash decisions.
"I think the council is being kind of cautious at least for the current fiscal year. The growth rate is somewhat flattened and very modest, but we see it being more optimistic in the next couple years," said Kurt Kawafuchi, council chair.
"Because we thought the Council on Revenues would downgrade its projection, we based our budget on a one-percent growth instead," said Representative Sylvia Luke, House Finance Chair.
Luke says the committee anticipated the Council's projection and came up with a new budget that is expected to pass on the floor Wednesday.