Hawaii taxpayers on the hook for $8,800

In 2024, Hawaii experienced an improvement in its financial situation, similar to that of many other states. But it still didn’t have enough money to pay all of its bills and needed $4.4 billion to fill the gap. That means each taxpayer would have to contribute $8,800 to help pay off the state’s debt. As a result, Hawaii earned a “D” grade from Truth in Accounting.

This analysis is part of Truth in Accounting’s annual Financial State of the States report, which combs through lengthy government financial reports to uncover the true fiscal health of each state.

The full analysis found that 25 states did not have enough money to pay their bills at the end of fiscal year 2024. Every state, except Vermont, has a balanced budget requirement. Yet the states needed more than $765 billion to cover their expenses at the end of fiscal year 2024. This means that to balance their budgets—as is required by law in 49 states—elected officials have shifted current costs onto future taxpayers.

Hawaii has received substantial temporary federal aid since 2020 in response to the COVID-19 crisis. This additional funding contributed to improvements in the state’s financial condition and increased its available resources to pay bills. However, as this aid declines and national budget tightening continues, future funding may return to more typical levels. This analysis models a return to 2019 federal grants and contributions, adjusted only for inflation. If that occurs, Hawaii could see a $1.9 billion reduction in federal funding, which represents around 10 percent of projected expenses for the state’s primary government and may present challenges for maintaining services and balancing the budget.

Truth in Accounting’s report provides a roadmap for states to improve fiscal transparency, empowering citizens with the information needed to understand how public money is managed. You can explore the full report and see how Hawaii compares to others at truthinaccounting.org.