GOVERNMENT IN HAWAII...Incorporated in 1953, the Tax Foundation of Hawaii is an independent,...

G O VER NM ENT IN HAWAII

A HANDBOOK OF F INANC IAL STATISTICS

HJ 389.5 FOUNDATION OF HAWAIIHONOLULU. H A W A tl

OFFICERSThomas K. Hitch, PresidentLowell E. Mee, First Vice PresidentHenry B. Clark, Jr., Second Vice PresidentFred W. Bennion, SecretaryBishop Trust Co., Ltd., Treasurer

BOARD OF TRUSTEESS. M. Askins..........................Division Office Manager, Del Monte CorporationH. C. Babbitt......... Vice President, Industrial Relations, C. Brewer & Co., Ltd.Wm. H. Balthis (Maui)...........................................................RetiredNorthrup H. Castle (Hawaii).................................................... RancherE. R. Champion......Vice Pres., Internatl. Market. & Public Rel., Dillingham Corp.Clinton L. Childs (Kauai)......................................... Property Management

*H. B. Clark, Jr................... Vice President & Treasurer, Castle & Cooke, Inc.*R. J. Diem........Gen. Manager, Hawn. Pineapple Operations, Libby, McNeill & LibbyRobert G. Dodge............................................ Partner, Heen, Kai & DodgeE. A. Helbush.......................... Controller, Hawaiian Electric Co., Inc.*T. K. Hitch...................................... Vice President, First Hawaiian BankRalph C. Honda.................................President, Office Appliance Co., Ltd.Sheridan C. F. Ing..................... Vice President, Finance Investment Co., Ltd.John J. Jaquette.................. Financial Vice President, Hawaiian Telephone Co.S. P. McCurdy Secretary, Castle & Cooke, Inc.

♦Lowell E. Mee....................Vice President & Treasurer, Honolulu Gas Co., Ltd.*M. A. Pietschman........................... Vice President and Treasurer, Amfac, Inc,Rowland B. Reeve.................. Assistant General Manager, Sheraton Hawaii Corp.D. Campbell Ross......................................... State Manager, Shell Oil Co.C. George Ruff...................Manager, Tax Department, Alexander & Baldwin, Inc.Larry E. Sato................................................Secretary, Sato ClothiersH. J. Sebastian Partner, Haskins & SellsH. H. Stephenson............................. Senior Vice President, Bank of HawaiiL. L. Thomas..................Vice President-Treasurer, Pacific Insurance Co., Ltd,

♦Executive Committee

ALTERNATESKenneth L. Bickmore....................Internal Auditor, Hawaiian Electric Co., Inc.John Burhop............................................ Vice President, Bank of HawaiiWm. Coots (Kauai).....................Assistant Office Manager, Grove Farm Co., Inc.Franklin Dey Internal Auditor, Tax Department, Theo. H. Davies & Co., Ltd.G. R. Ewart III................. Manager, Land Department, C. Brewer & Co., Ltd.W. H. Hole Hawaiian Division Manager, Del Monte CorporationG. L. Hopper Managing Partner, Haskins & SellsW. B. JeuTtieson............................Assistant Controller, Castle & Cooke, Inc.Sidney Kosasa President, Thrifty Drugs of HawaiiWm. A. Kruse......................................... Assistant Treasurer, Amfac, Inc.Randolph M. Lee, Jr............. Vice President 6 General Manager, Halekulani HotelWm. Mackenzie (Hawaii)... Ex. Vice Pres. & Gen. Mgr., Hilo Electric Light Co., Ltd.T. J. McCabe......... Industrial Relations Dir., McCabe, Hamilton & Renny Co., Ltd.J. G. McGuire............................................. Plant Manager, Shell Oil Co.T. J. Mitchell......Controller, Hawn. Pineapple Operations, Libby, McNeill & LibbyColin C. Murdoch (Maui)..................... Vice President, Maui Electric Co., Ltd.R. A. Obrock........................ Financial Vice President, Dillingham CorporationRoger L. Stoker.................................. District Manager, S. H. Kress & Co.Robert M. S. Tom.................................... Treasurer, Hawaiian Telephone Co.Harold A. Tucker................... Asst. Director of Research, First Hawaiian BankRichard C. Van Etten...........Vice President, First Insurance Co. of Hawaii, Ltd.Roy A. Vitousek, Jr............................................................AttorneyJeunes E. Watts.........................................Partner, Alexander Grant & Co.Clifford H. N. Yee................. Executive Vice President, Finance Factors, Ltd.

STAFFFred W. Bennion, Executive Director Frank R. Andrade, Research Assistant Nell A. Cammack, Research Assistant Nora K. Kaaua, Secretary

TAX FOUNDATION OF HAWAII

Incorporated in 1953, the Tax Foundation of Hawaii is an independent, non-profit, non-partisan educational citizens' organization. The Foundation is governed by a 25-member Board of Trustees representing the entire State. The Foundation is financed by voluntary contributions from underwriting members, business organizations, and from corporate and individual associate members.

The purpose of the Tax Foundation is to encourage efficiency and economy in government, and to improve the economic status and standard of living of the citizens of the State of Hawaii. This is accomplished in part by cooperating with public officials and other organized groups or individuals working toward the adoption of improved methods, systems and procedures of public administration.

Data relative to government and taxation are collected and analyzed, with the Tax Foundation serving as a clearing house. Information that is compiled is made a- vailable to the public through the publication of reports, p amphlets, newspaper articles and by radio and television broadcasts.

In addition to GOVERNMENT IN HAWAII, other releases by the Tax Foundation of Hawaii inc lude: FINANCE INBRIEF, a wallet size resume' of Hawaii’s fiscal facts; a weekly column in the editorial pages of the Sunday Honolulu Star-Bulletin & Advertiser; a radio series twice weekly on KTRG and weekly on KIKI and KLEI. During the State of Hawaii Legislative Sessions, the Foundation prepares a LEGISLATIVE TAX BILL SERVICE which digests and comments on tax legislation; TAX TOPICS offers capsule comments on highlighted legislative issues; and LEGISLATIVE TAX REVIEW, published at the conclusion of each session, presents detailed reports of all major action as well as an examination of the changes in the State's finances.

TAX FOUNDATION OF HAWAII

GOOD GOVERNMENT DEPENDS ON AN INFORMED PUBLIC

FOREWORD

Everything is up in Hawaii -

Population 32%Personal Income 117Public Bonded Debt 149Tax Collections - State & Local 179Tax Collections - Federal 165Cost of Living 27

But not all things go up at the same rate.

The percentage increases cover a 10-year period. While personal income rose faster than the cost of living, debt and taxes rose much more rapidly than either population or income.

Operating expenditures of the State and counties now exceed $500 million a year. With a population of less than 800,000, the per capita costs of government are high when related to the rest of the nation, however, Hawaii's p o s i tion in tax burden on a per capita basis in relation to o t h er states improved from 3rd highest in 1967 to 6th in 1968.

Direct general state and local expenditures are the 4th highest in the nation on a per capita basis. This high ranking is partly due to relative high costs of General C o n trol - such as cost of legislature, administration of justice, governor and county chief executive offices, and central staff agencies; also police and fire protection, higher education, and a "miscellaneous" category.

Average monthly earnings of State and local public e m ployees are 8th highest in the nation, while the number of public employees related to population places Hawaii 12th from the top.

These are a few highlights from this 16th edition of Government in Hawaii which continues its original design of presenting data in four categories; general economic statistics; information on where the state and counties get their money; how they spend it; and the public debt of each unit.

We gratefully acknowledge the cooperation and assistance provided by many persons in federal, state and local government in Hawaii. Our special thanks goes to the d i rectors and staffs of the State of Hawaii Departments of A c counting and General Services, Budget & Finance, Education, Labor, Planning & Economic Development, Taxation, and T r a n s portation; City & County of Honolulu Budget and Finance D e partments; Auditors and Treasurers of Maui, Hawaii and Kauai Counties; and the Bank of Hawaii and First Hawaiian Bank.

Thomas K. Hitch, President Tax Foundation of Hawaii

TABLE OF CONTENTS— GOVERNMENT IN HAWAII 1969

For e w o r d ............................................................... 2

PART ONE: 50TH STATE STATISTICS............................. 4Population............................................... 5Economic Growth.......................................... 6Income Sources........................................... 7Hawaii's Counties....................................... 8Personal Income by State................................ 10Civilian Employment..................................... 11

PART TWO: WHERE GOVERNMENT GETS ITS M O N E Y .................. 13State and County Tax Collections....................... 14Tax Burden by State..................................... 17General Excise Tax Data................................. 18Fuel Tax Collections.................................... 19State Operating Revenues........................ 20Sales Tax Rates by State............................... 22Fuel, Tobacco and Liquor Rates........................ 23State Personal Income Tax Rates....................... 24State Corporate Income Tax Rates...................... 25Real Property Data...................................... 26County Operating Revenues.......................... 29Taxes Levied in Hawaii.................................. 32Federal Administrative Budget.......................... 34Federal Taxes and Grants in Hawaii..................... 35Tax Collections in Hawaii............................... 36General Fund Finances................................... 37

PART THREE: HOW GOVERNMENT SPEN D S ITS M ONEY................ 38

Direct Expenditures Per C a p i t a ............................. 39State Operating Expenditures............................... 40County Operating Expenditures.............................. 42Public Employment D a t a ....................................... 45Public School D a t a ............................................ 49University of Haw a i i ......................................... 53Transportation: Airports................................... 54

Harbors .................................... 55Highways................................... 56

PART FOUR: THE LONG TERM PUBLIC BONDED DEBT.................. 57

Per Capita Debt by S t ate .................................... 58State and County Debt in Hawaii............................ 59Constitutional Debt L i m i t s .................................. 63

Index.................................................................. 64

50TH STATE STAT IST ICS

Selected trends over the past 10 years indicate the extent and direction of Hawaii's economic development. The latest population figures show that the mid-year de facto civilian population has grown to 725,000 - a 32% increase over the 550,000 of 1958. While the cost of living rose some 25% during the decade of 1957 to 1967, total personal income in Hawaii more than kept pace with a 117% increase during the comparable period reaching $2.4 billion. However, taxation as well as inflation has taken its share of the pie. State and county tax collections increased over those of 10 years ago by an astounding 179% - hitting a new high of $338 million. Comparable figures for federal tax collections in Hawaii show an increase of 165% with a 1968 total of $440 million.

Hawaii’s economic health remains dependent upon the four major bases of tourism, military expenditures, sugar and pineapple. However, diversified manufacturing is steadily becoming a significant element in the total picture.

More than one million tourists visited Hawaii in 1968, and while here, spent an estimated $500 million - more than 25% more than in 1967. An expanding R & R program in conjunction with the federal government's efforts to encourage travelers to "see America first" promises to help make 1969 another record breaking year for the tourist industry.

Trade continues to flourish despite the imposition of the 10% surtax. A new high of $1.5 billion in retail sales was recorded - up 7% over the previous year. A 22% increase in wholesale sales amounted to a total of more than $1 billion.

Concerted efforts to develop diversified manufacturing into a primary economic base are apparently having favorable results which are reflected in an increase of $34 million, or 11% over the previous period. This growth is largely due to growing demands for Hawaiian clothing, textiles, flowers and foodstuffs both in Hawaii and on the mainland. At the same time the needs of the construction industry continue to encourage the development of locally made concrete and prefabricated construction materials.

Total employment gained 7% over 1967, while unemployment dropped to 2.8%. The number of persons employed rose in all sectors of the economy except agriculture, with hotel services leading with an increase of 32%.

Military spending in Hawaii continued at a high level. A total of 22,850 civilians were employed by the Army, Navy and Air Force (7.6% of the civilian labor force). Military expenditures rose 4% and totaled $610 million, while the military de facto population at July 1 equaled 53,000.

The sugar crop produced 1.2 million tons and was just 2,000 tons short of the 1966 peak year. Pine production was reduced due to the pineapple workers' strike in early 1968 and is estimated at a value of $125 million. Estimates for 1969 set a $133 million value for the total pine crop.

RESIDENT POPULATIONState of Hawaii

TABLE 1

Year^ CivilianPopulation

% Annual Increase

ArmedForces'^

StateTotal

1968°1967196619651964196319621961196019591958

725.000705.000679.0006 6 6 . 0 0 0644.000630.000617.000600.000583.000565.000550.000

2.83.8 2 .0 3.4 2.2 2.12.8 2.9 3.22.74.8

53.00056.00054.00053.00073.00060.00079.00061.00059.00057.00055.000

778.000761.000733.000719.000717.000690.000696.000661.000642.000622.000 605,000

By County: 1960 and 1966<5City-County Maui Hawaii Kauai

Year Honolulu County County County Total4/1/60 500,000 43,000 61,000 28,000 633,0007/1/66 594,000 47,000 63,000 29,000 733,000a. At July 1.b. Includes ship crews on de facto basis.c. Data for 1968 provisional.d. Includes armed forces on de facto basis.SOURCE: Unpublished estimates, U. S. Department of Commerce, Bureau

of the Census; and Department of Planning and Economic Development, State of Hawaii.

CH ART 1

R ES ID EN T POPULATIONState of Hawaii and Counties

Thousands Thousands

A P R iL 1960

Note: Includes Armed Forces on a de facto basis. SO U RCE: Table 1

JULY 1966

GROWTH IN THE HAWAIIAN ECONOMYSelected Calendar Years 1958-1968

TABLE 2

AmountsEconomic Indicators 1968 1967 1966 1963Population^ 778,000 761,000 733,000 690,000 605,000 2.23 12.75 28.60Labor Forced 308,300 291,290 281,880 250,880 211,540 5.84 22.89 45.74Employment^ 299,750 280,820 272,730 238,630 201,370 6.74 25.61 48.86Unemployeds^ 2,8% 3.5% 3.2% 4.8% 3.4% -20.00 - 41.67 - 17.65Cost of Livingc 112.8% 109.7% 106.5% 100.0% 88.7% 2.83 12.80 27.17Motor Vehicle Registrations 372,894 346,579 336,640 276,279 205,654 7.59 34.97 81.32Total Housing Units® 226,671 218,248 208,980 186,044 151,700 3.86 21.84 49.42Total Hotel Roomsd 20,604 18,657 17,217 11,403 5,494 10.44 80.69 275.03Number of Visitors<^ 1,200,000 1,001,810 710,580 429,140 171,588 19.78 179.63 599.35Per Capita Personal Income^ $ 3,470 $ 3,331 $ 3,117 $ 2,639 $ 1,987 4.17 31.49 74.64Per Capita Taxes<^ $ 426 $ 407 $ 365 $ 256 $ 213 4.67 66.41 100.00

DOLLAR AMOUNTS IN MILLIONSVisitor Expendituresd S 500 $ 400 $ 302 $ 186 $ 83 25.00 168.82 502.41Military Expenditures^ 610 585 517 369 327 4.27 65,31 86.54Total Personal Income^ 2,700 2,415 2,225 1,776 1,178 11.80 52.03 129.20Bank Demand Deposits^ 1,290 1,182 1,042 853 563 9.14 51.23 129.13Value of Sugar Crops^ 209 191 190 192 105 9.42 8.85 99.05Value of Pineapple Exports^ 125 128 123 116 124 - 2.34 7.76 0.81Retail Sales9 1,529 1,394 1,297 1,027 739 9.66 48.88 106.90Wholesale Salesg 1,052 861 790 430 308 22.18 144.65 241.56Diversified Manufacturing9 344 310 294 255 120 10.97 34.90 186.67Construction Value 442 367 371 265 175 20.44 66.79 152.57Balance of Payments:

Receiptsh 2,030 1,856 1,607 1,199 859 9.38 69.31 136.32Expendituresh 2,000 1,797 1,544 1,183 821 11.30 69.06 143.61

1967Percent Change 1968 from

1963 1958

a. Mid-year estimates of resident population, including military and ship crews on a de facto basis.b. Monthly average; 1968 based on preliminary data at November.c. Honolulu Consumer Price Index at December (revised), based on December, 1963 » 100%; 1968 figure at September.d. Estimated 1968 data; subject to revision.e. At April 1.f. Pineapple products exclusive of local sales. Data for 1968 includes local sales.g. Based on General Excise Tax Base, federal exempt sales and other data.h. Revised data on inflow and outflow of money due to commodity and other exports and imports as reported by the Bank of

Hawaii; 1968 estimated.SOURCE: State Departments of Budget & Finance, Planning & Economic Development, Regulatory Agencies, Labor & Industrial Rela

tions, and Taxation; City & County Budget and Finance Directors; County Auditors and Treasurers; Hawaii Visitors Bureau; Honolulu Redevelopment Agency; Honolulu Automobile Club; U. S. Department of Commerce; Bank of Hawaii; and First Hawaiian Bank.

SOURCES OF PERSONAL INCOMEHawaii (Selected Years): U.S. Average (1957 and 1967)

_______________ (Amounts in M illions)___________

TABLE 3

1967State of Hawaii

Income Source% of Total

1966% of Total

1957% of

Amount Total% Change

1967 From 1957

49 State Average^% of Total

1957 1967% Change

1967 From 1957

Farms $ 67 2.8 $ 64 2.9 $ 55 4.9 21.8 0.8 0.4 - 3.3Mining -- — — — 1 0.1 — 1.2 0.7 9.0Contract Construction 140 5.8 149 6.7 45 4.0 211.1 4.0 3.9 72.1Wholesale & Retail Trade 261 10.8 238 10.7 107 9.6 143.9 12.2 11.0 62.6Manufacturing 140 5.8 134 6.0 66 5.9 112.1 23.1 21.5 66.2Finance, Insurance & Real Estate 85 3.5 80 3.6 24 2.2 254.2 2.9 3.2 92.8Transportation 83 3.4 74 3.3 43 3.9 93.0 4.0 3.1 40.4Com nunication & Utilities 49 2.0 45 2.0 19 1.7 157.9 2.1 1.9 64.3Services^

Hotels & Other Lodging 40 1.7 33 1.5 11 1.0 263.6 0.4 0.4 82.0Personal & Household Services 31 1.3 28 1.3 18 1.6 72.2 1.7 1.3 44.5Business & Repair 41 1.7 34 1.5 9 0,8 355.6 1.1 1.7 181.1Amusement & Recreation 12 0.5 11 0.5 6 0.5 100.0 0.5 0.5 75.7Prof., Social, & Rel. Services 103 4.3 91 4.1 34 3.1 202.9 2.9 4.1 158.0

GovernmentFederal, Civilian 251 10.4 224 10.1 119 10.7 110.9 3.1 3.4 96.1Federal, Military 248 10.3 226 10.2 173 15.5 43.4 2.2 2.1 72.3State and Local 233 9.6 208 9.3 81 7.3 187.7 5.6 7.6 145.1

Other Industries 4 0.2 4 0.2 2 0.2 100.0 0.2 0.1 45.2Total Wages and Salaries $1,787 74.0 $1,640 73.7 $ 812 72.9 120.1 67.8 67.1 76.9Other Labor Income 70 2.9 62 2.8 32 2.9 118.8 2.6 3.7 153.1Proprietors Income

Farm 28 1.2 33 1.5 28 2.5 0.0 3.4 2.3 22.0Non-Farm 152 6.3 146 6.6 80 7.2 90.0 9.4 7.4 41.1

Property Income 317 13.1 297 13.3 130 11.7 143.8 12.5 14.4 106.6Transfer Payments 141 5.8 117 5.3 52 4.7 171.2 6.2 8.3 138.0

Sub-Total $2,495 103.3 $2,295 103.1 $1,,135 101.9 119.8 101.9 103.3 81.1Less: Pers. Contrib. for Soc. Ins. - 80 - 3.3 - 70 - 3,1 - 21 - 1.9 281.0 - 1.9 - 3.3 202.3Total Personal Income $2,415 100.0 ?2/225 100.0 $1,rll4 100.0 116.8 100.0 100.0 78.8NOTE: Detail may not add to total due to rounding.a. Includes Hawaii; excludes Alaskab. Breakdown of 1957 "Services" for Hawaii estimated by the Tax Foundation of HawaiiSOURCE: "Survey of Current Business," August, 1968; "Hawaii Personal Income by Major Sources, 1948-1962,"

out), September, 1966, U. S. Department of Commerce, Office of Business Economics, Washington, D.(Computer Print- C.

THE COUNTIES OF HAWAIIM isce llaneous Data — 1967 and 1968

TABLE 4

City & County of Honolulu Maui County Hawaii County Kauai County

1968 1967 1968 1967 1968 1967 1968 1967Civilian Labor Force® 248,100 236,950 19,300 19,000 27,950 26,250 13,000 12,350Number Employed® 241,350 229,250 18,550 17,950 27,150 25,400 12,650 11,950Unemployment Rate® 2.7% 3.2% 3.6% 5.3% 2.8% 3.3% 2.6% 3.2%Hotel Units“ 14,583 12,911 2,241 1,986 2,222 1,998 1,558 1,247Motor Vehicle Registration® 292,600 272,647 27,952 25,752 36,049 32,297 16,293 15,883Number of Telephones 291,317 251,505 19,622 18,320 28,138 25,455 13,119 11,884Sugar Production (Tons) 224,737 212,510 288,128 280,697 445,435 439,772 263,882 258,063

DOLLAR AMOUNTS IN THOUSANDSTax Revenues^ $ 69,592 $ 65,849 $ 3,700 $ 4,089 $ 5,179 $ 5,233 $ 2,503 2,609Government Expenditures^ 82,159 75,916 7,901 7,342 11,033 13,003 5,630 5,085Bank Demand Depositsc 498,938 425,861 19,315 17,069 31,012 25,542 12,018 10,881Value of Sugar Cropse 38,122 34,380 48,864 43,930 77,246 70,670 44,768 42,020Selected Tax Basest

Pineapple Canning 93,817 111,932 17,216 16,117 — — 3,521 3,646Retailing 1,331,777 1,188,603 67,154 60,723 91,282 79,096 39,047 35,166Wholesaling 982,890 844,967 20,297 17,904 38,267 28,766 10,963 9,684Manufacturing 211,100 210,221 6,182 5,939 8,972 8,879 3,128 2,314Contracting 414,121 316,936 15,955 10,676 16,316 14,195 5,305 4,971Services 321,413 272,436 12,366 11,253 18,443 16,107 6,629 5,895Rentals 368,730 324,100 20,376 17,254 21,204 15,768 6,937 5,198

a. At December 12; unemployment rate as a percent of labor force. 1968 data at November.b. Data at December; 1968 at October.c. At December 31.d. Fiscal 1968 and 1967.e. Based on $209 million (preliminary) value for State's total crop value.f. Based on general excise tax base for January-December, as reported by State Tax Office.

manufacturing also include use tax and federal exempt sales, differences in reporting.

Retailing, wholesaling andDoes not necessarily reflect all business activity due to

SOURCE: State Departments of Planning & Economic Development, Labor & Industrial Relations, and Taxation; City i CountyBudget & Finance Directors; Counties' Auditors and Treasurers; Honolulu Automobile Club; Bank of Hawaii; Hawaiian Telephone Company; Hawaii Visitors Bureau; Hawaiian Sugar Planters' Association; First Hawaiian Bank; and Tables 22-25 and 33-36.

CHART 2

TOTAL PERSO NA L INCO M E By Counties: 1960-1966

M ILL IO N S M ILL IO N S

$2000 -

$1500 -

$1000

$500

- $ 20 00

1960 1961 1962 1963 1964

SO U RCE: Department of Economic Research, First Hawaiian Bank.

9

$1500

$1000

$500

1965 1966

PER CAPITA PERSONAL INCOMEBy States — Selected Years=

TABLE 5

State1967 1966 1962 1957

% Change 1967 from

Amount Rank Amount Rank Amount Rank Amount Rank 1966 1957

HAWAII $3,331 14 $3,117 14 $2,530 13 $1,944 22 6.9 71.3U.S. AV. 3,159 — 2,978 — 2,368 — 2,045t> — 6.1 54,5Ala. 2,163 49 2,062 48 1,577 48 1,371 47 4.9 57.8Alaska 3,738 5 3,452 9 2,742 9 2,325 9 8.3 60.8Ariz. 2,720 34 2,568 33 2,171 30 1,803 31 5.9 50.9Ark. 2,099 50 2,031 50 1,545 49 1,207 50 3.3 73.9Calif. 3,665 7 3,468 7 2,887 6 2,489 7 5.7 47.2Colo. 3,135 20 2,919 23 2,425 16 2,022 18 7.4 55.0Conn. 3,969 2 3,732 2 3,040 3 2,712 1 6.4 46.3Del. 3,642 8 3,482 6 2,883 7 2,641 3 4.6 37.9Fla. 2,853 29 2,647 31 2,051 33 1,768 33 7.8 61.4Ga. 2,541 40 2,373 41 1,775 42 1,469 44 7.1 73.0Idaho 2,575 39 2,415 39 2,033 34 1,720 34 6.6 49.7111. 3,750 4 3,554 3 2,826 8 2,488 8 5.5 50.7Ind. 3,196 17 3,056 17 2,359 21 2,028 17 4.6 57.6Iowa 3,109 22 3,024 18 2,176 29 1,869 29 2.8 66.3Kans. 3,060 25 2,884 25 2,295 24 1,883 26 6.1 62.5Ky. 2,426 45 2,243 45 1,751 43 1,466 45 8.2 65.5La. 2,456 43 2,281 43 1,748 44 1,614 40 7.7 52.2Me. 2,657 35 2,500 35 1,904 41 1,679 36 6.3 58.2Md. 3,421 12 3,235 13 2,573 12 2,198 13 5.7 55.6Mass. 3,541 10 3,290 10 2,675 10 2,247 10 7.6 57.6Mich. 3,396 13 3,280 11 2,438 14 2,229 11 3.5 52.4Minn. 3,116 21 2,908 24 2,254 27 1,874 28 7.2 66.3Miss. 1,896 51 1,763 51 1,309 51 1,040 51 7.5 82.3Mo. 2,993 28 2,811 27 2,270 26 1,922 25 6.5 55.7Mont. 2,765 32 2,662 29 2,271 25 1,944 23 3.9 42.2Neb. 3,081 23 2,951 21 2,247 28 1,876 27 4.4 64.2Nev. 3,583 9 3,499 5 3,241 2 2,588 4 2.4 38.4N. H. 3,053 26 2,845 26 2,300 23 1,927 24 7.3 58.4N. J. 3,668 6 3,466 8 2,889 5 2,536 5 5.8 44.6N. M. 2,477 42 2,370 42 2,015 37 1,702 35 4.5 45.5N. Y. 3,759 3 3,519 4 2,902 4 2,493 6 6.8 50.8N. C. 2,439 44 2,278 44 1,727 45 1,369 48 7.1 78.2N. D. 2,487 41 2,412 40 2,155 32 1,479 43 3.1 68.2Ohio 3,213 16 3,081 15 2,427 15 2,227 12 4.3 44.3Okla. 2,643 36 2,462 38 1,925 40 1,641 39 7.4 61.1Ore. 3,063 24 2,933 22 2,373 19 1,995 20 4.4 53.5Pa. 3,187 18 2,998 19 2,371 20 2,137 15 6.3 49.1R. I. 3,328 15 3,075 16 2,425 17 1,999 19 8.2 66.5S. C. 2,213 48 2,060 49 1,531 50 1,236 49 7.4 79.0S. D. 2,590 38 2,469 37 2,001 38 1,604 42 4.9 61.5Tenn. 2,394 46 2,242 46 1,696 47 1,419 46 6.8 68.7Texas 2,744 33 2,559 34 2,027 35 1,823 30 7.2 50.5Utah 2,604 37 2,495 36 2,163 31 1,794 32 4.4 45.2Vt. 2,825 30 2,651 30 1,980 39 1,646 38 6.6 71.6Va. 2,804 31 2,619 32 2,018 36 1,652 37 7.1 69.7Wash. 3,521 11 3,270 12 2,593 11 2,170 14 7.7 62.3W. Va. 2,334 47 2,174 47 1,698 46 1,610 41 7.4 45.0Wise. 3,156 19 2,991 20 2,336 22 1,991 21 5.5 58.5Wyo. 3,002 27 2,779 28 2,386 18 2,054 16 8.0 46.2D. C. 4,123 1 3,853 1 3,249 1 2,701 2 7.0 52.6a. Data for years prior to 1967 revised by the U. S. Department of

Commerce. Fifty states and the District of Columbia are ranked.b. Excludes Hawaii and Alaska.

SOURCE: "Survey of Current Business," August, 1968, U. S. Department ofCommerce, Office of Business Economics, Washington, D. C.

10

EMPLOYMENT IN HAWAIIEm ployment in Selected Industries Selected Years as at Decem ber 12

TABLE 6

Type of EmploymentNumber Employed

1958

Percent Change 1968 over % of Total Employed

1968a 1967 1966 1963 1967 1958 1968 1967 1958GOVERNMENT

State 24,800 24,130 22,110 17,150 14,240 2.78 74.16 8,27 8.48 6.89County 9,700 9,280 9,750 8,570 7,700 4.53 25.97 3.24 3.26 3.72

Sub-Total Local Governments 34,500 33,410 31,860 25,720 21,940 3.26 57.25 11.51 11.74 10.61Federal (Civilian) - Air Force 3,700 3,670 3,410 2,780 2,640 0.82 40.15 1.23 1.29 1.28

Army 6,050 5,930 5,890 4,940 5,020 2.02 20.52 2.02 2.08 2.43Navy 13,100 13,120 12,390 10,660 10,890 - 0.15 20.29 4.37 4.61 5.27Other 12,300 11,580 11,290 9,750 7,630 6.22 61.21 4.10 4.07 3.69

Sub-Total Federal Government 35,150 34,300 32,980 28,130 26,180 2.48 34.26 11.73 12.05 12.66Sub-Total Government 69,650 67,710 64,840 53,850 48,120 2.87 44.74 23.24 23.80 23.28PRIVATE INDUSTRY

Agriculture - Sugarb 6,300 6,340 6,310 6,830 8,760 - 0.63 - 28.08 2.10 2.23 4.24Pineappleb 3,300 2,930 3,300 2,620 3,500 12.63 - 5.72 1.10 1.03 1.69Other 2,300 2,280 2,260 1,500 1,320 0.88 74.24 0.77 0.80 0.64

Food Processing 11,250 11,890 12,390 13,080 13,630 - 5.38 - 17.46 3.75 4.18 6.59Textile & Apparel Mfg. 2,750 2,530 2,530 2,260 1,860 8.70 47.85 0.92 0.89 0.90Printing and Publishing 2,400 2,310 2,340 2,380 1,860 3.90 29.03 0.80 0.81 0.90Other Manufacturing 5,650 4,920 4,900 4,450 3,760 14.84 50.27 1.88 1.73 1.82Transport., Comm., & Utilities 20,850 18,410 17,570 15,360 13,320 13.25 56.53 6.96 6.47 6.44Wholesale Trade 14,450 13,590 13,420 12,830 10,790 6.33 33.92 4.82 4.78 5.22Retail Trade 46,850 45,150 43,570 36,060 29,130 3.77 60.83 15.63 15.87 14.09Contract Construction 19,400 18,350 17,710 15,030 13,720 5.72 41.40 6.47 6.45 6.64Hotel Services 11,300 8,530 7,370 5,110 3,510 32.47 221.94 3.77 3.00 1.70Other Services 38,150 35,770 34,370 29,380 22,570 6.65 69.03 12.73 12.57 10.92Self-Employed 6 Domestics 30,200 29,080 28,940 26,220 23,160 3.85 30.40 10.08 10.22 11.20Finance, Ins. & Real Estate 15,000 14,740 13,850 11,440 7,710 1.76 94.55 5.00 5.18 3.73

Sub-Total Private Industry 230,100 216,820 210,830 184,550 158,600 6.12 45.08 76.76 76.20 76.72Total Number Employed 299,750 284,530 275,670 238,400 206,720 5.35 45.00 100.00% 100.00% 100.00%Unemployed as % of Civ. Labor Force 2.8 3.4 3.5 4.8 3.2 — — — — —a. November, 1968, preliminary data,. Table reflects revisions in prior year data made by State Labor Department.b. Sugar mill and pineapple cannery workers included in food processing. SOURCE: Department of Labor and Industrial Relations, State of Hawaii.

Percent

T R EN D S IN HAWAIIAN EM PLOYM ENTGovernment and Private Industry

1958-1968 at December

CHART 3

Percent

SO U RCE: Department of Labor and Industrial Relations, State of HawaiiNov.

12

WHERE GOVERNMENT GETS ITS MONEY

HAWAII AND THE COUNTIES

The tax structure of Hawaii ie highly oentralized with the State levying, administering and collecting almost all taxes. The counties' responsibilities - although limited in the area of taxation - are nevertheless significant. The counties set rates for both the real property tax (without limits) and the local portion of the fuel tax, and the State administers, assesses and collects them. While the State sets the public utility franchise tax, the counties are responsible for its administration and collection. In addition to the various licenses and permits required and administered on the county level, the counties have complete control over the motor vehicle weight tax.

Hawaii's tax burden on a per oapita basis is still rising, with estimated state and local collections in fiscal 1968 of $426 per person. This ranks Hawaii 6th in the nation and $74 above the national average (page 17). When taxes are related to personal income, theranking is also 6th with about $12.79 out of every $100 of income being used to pay state and local taxes in the 50th State.

Total tax collectionsl in fiscal 1968 exceeded $766.7 million(pages 14 and 35). Collections of federal taxes in Hawaii were reported at $440.2 million (page 35), and state-county tax revenues^ excluding unemployment compensation reached $326.5 million (page 14). Hawaii's state and local collections accounted for 43% of the total tax collections in the State (page 36).

Sales and income taxes made up the bulk of the tax receipts,They accounted for 60% of the total collections! in fiscal 1968. Realproperty taxes made up 19.5% with licenses, vehicle and other taxesresponsible for the remaining 20.5%.

Earmarking of taxes is rare in Hawaii. Excluding collections for unemployment compensation, less than 10% of the 1968 tax collections went for special projects (page 14). Liquid fuel taxes (for airports and state and county highways), the utility franchise and motor vehicle weight taxes (county highways) are the major examples.STATE OF HAWAII

Revenue receipts of $418.1 million were reported by the State government in fiscal 1963 (page 21). This is an 8.4% increase ($32.5 million) over 1967. Tax receipts were up 10% and represent 60.6% ofall receipts. Earnings jumped by 43% but only accounted for 7.6% ofthe total, while federal grants-in-aid made up 25%, and sales, interest and other miscellaneous items provided the remaining 6.8%.

A surplus of $25 million in the general fund at the end of fiscal 1968 represented an increase of $5 million over the previous year continuing a five-year trend of surplus accumulation (page 37).THE COUNTIES

Total operating revenues for the four counties was $113.1 million in fiscal 1968. Act 97, SLH 1965, transferred the responsibility for hospitals and the maintenance and building of schools from the counties to the State. This has altered the counties' revenue and expenditure patterns significantly, particularly in 1967 and 1968.

Real property taxes continue to provide more than half (56%) of the operating revenues for all the aountiee (page 29). In Honolulu,63% of the revenues come from this source, but on the neighbor islands state-aid grants provide the major source of revenues: 45% for Kauai,42% for Maui, and 38% for Hawaii. However, property taxes are thesecond largest source gaining each year in overall percentages.1. Adjusted for $29.5 million in real property taxes due in 1967 but

oolleoted in 1966.

13

TABLE 7

STATE AND COUNTY TAX COLLECTIONS IN HAWAIISelected Fiscal Years

Unit of Government and Sources 1968 1967 1966 1963 1958State of Hawaii

Gross Income & Use^ $114,459,522 $104,495,172 $ 93,721,542 $ 67,785,576 $ 48,621,304Fuel 21,910,824 20,316,761 18,454,891 15,240,993 12,322,899Liquor 6,291,427 5,796,780 5,404,933 3,643,937 2,750,252Tobacco 4,972,852 4,668,757 3,719,259 2,370,274 1,698,496Insurance 5,147,387 3,931,937 3,812,355 2,673,698 1,382,782Public Service Companies^ 10,544,914 8,963,873 8,984,927 5,707,562 3,382,493Banks & Other Financial Corporations 1,495,073 1,725,460 1,406,823 805,882 281,610Corporate IncomeC 11,196,353 10,525,210 9,950,548 5,712,114 4,616,399Personal Income^

Compensation & Dividends 3,455 5,404 7,456 28,146 9,233,529Net Income^ 70,308,626 63,506,557 47,342,497 31,933,012 10,251,367

Inheritance & Estate 1,606,042 1,591,566 1,445,585 1,730,012 338,604Real Property^ 63,705,2586 60,143,5436 57,399,238 30,958,062 16,143,8936Conveyance (Realty Transfer) 264,173 88,044 — — —Licenses, Permits & Others 838,755 762,906 716,214 626,912 450,294Unemployment Compensation 11,460,627 10,768,620 10,872,820 6,044,286 3,104,358

Sub-Total $324,205,288 $297,290,590 $263,239,088 $175,260,466 $114,578,280Counties^

Liquor License Fees $ 712,057 $ 580,768 $ 574,331 $ 502,267 $ 418,600Utility Franchise 1,676,432 1,555,748 1,440,084 1,201,577 746,402Motor Vehicle Weight 8,777,013 8,545,334 6,034,168 5,226,229 4,110,220Licenses, Permits & Other 2,565,775 1,747,629 1,744,153 1,297,916 1,016,650

Sub-Total $ 13,731,277 $ 12,429,479 $ 9,792,736 $ 8,227,989 $ 6,291,872Grand Total $337,936,565 $309,720,069 $273,031,824 $183,488,455 $120,870,152a. Reduced by Natural Disaster refunds and credits - Gross Income: $61,862 (1968), $117,649 (1967), $777,475 (1966),

$1,809,825 (1963); Personal Income: $21,070 (1968), $69,134 (1967), $197,425 (1966): Real Property: $215,443 (1968),$10,508 (1967), $738,247 (1966), $143,318 (1963).

b. Formerly Public Utility - After January i, 1964, includes public utilities and airlines and -otor carriers formerly under General Excise Tax.

c. Includes payments on estimated taxes.d. Net Income Tax includes withheld and estimated tax, less refunds. Compensation and Dividends Tax repealed effective

January 1, 1958.e. Adjusted for delayed collections estimated at $29,500,000 in 1968 for 1967, and $6,362,000 in 1958 for 1957.f. Previous calendar year data for counties prior to 1967, except fiscal year data for City and County of Honolulu from 1962.SOURCE: Departments of Taxation i Accounting & General Services, State of Hawaii; and County Auditors' Annual Reports.

ALLOCATION OF STATE AND COUNTY TAXESHawaii — Fiscal Years 1967 and 1968

(In Thousands)

TABLE 8

1968 Allocated to

1967 Allocated to

Type of Taxes State Honolulu Maui Hawaii Kauai Total State Honolulu Maui Hawaii Kauai TotalState Collections

Gross Income® $103,033 $ 2,567 $2,797 $ 3,759 $2,304 $114,460 $ 93,988 $ 2,067 52,624 $3,638 $2,178 $104,495Fuel 14,748 5,486 710 597 370 21,911 13,514 5,232 679 547 345 20,317Liquor 6,291 6,291 5,797 5,797Tobacco 4,973 4,973 4,669 4,669Insurance 5,147 5,147 3,932 3,932Public Service Co. 10,545 10,545 8,964 8,964Banks & Fin, Corp. 1,495 1,495 1,725 1,725Income - Corporate^> 11,196 11,196 10,525 10,525Income - Individual® 70,312 70,312 63,512 63,512Inheritance & Estate 1,606 1,606 1,591 1,591Real Property^ 3 81,429 3,835 5,637 2,301 93,205 3 26,468 1,397 1,927 849 30,644Convey. (Realty Transfer) 264 264 88 88Unemployment Compensation 11,461 11,461 10,769 10,769Licenses & Others 839 839 763 763

Sub-Total $241,913 $ 89,482 $7,342 $ 9,993 $4,975 $353,706 $219,840 $33,767 $4,700 $6,112 S3,372 $267,791County Collections

Liquor Fees $ — $ 487 $ 79 $ 98 $ 48 $ 712 $ " $ 417 S 76 $ 78 $ 9 $ 580Utility Franchise — 1,411 58 149 58 1,676 — 1,317 55 137 47 1,556Motor Vehicle Weight - - 7,192 514 726 344 8,777 ' — 6,906 531 765 343 8,545All Others — 2,152 135 207 72 2,566 ' — 1,393 127 158 70 1,748

Sub-Total $ — $ 11,242 $ 786 S 1,180 $ 522 $ 13,731 $ -- $10,033 $ 789 $1,138 $ 469 $ 12,429Total $241,913 $100,724 $8,128 $11,173 $5,497 S367,436d $219,840 $43,800 $5,489 $7,250 $3,841 5280,220dNOTE: Detail may not add to total due to rounding.a. State Grants-in-Aid distributed according to each county's "relative fiscal capacity and relative fiscal need."b. Includes amounts paid on declared estimated taxes less refunds.c. Includes delinquent collections from Compensation and Dividends Tax repealed 1-1-58 and Personal Net Income Tax, including

payments for withheld and declared estimated taxes less refunds.d. Not adjusted for delayed collections estimated at $29,500,000 due in 1967 but collected in 1968.SOURCE: Departments of Taxation, and Accounting and General Services, State of Hawaii; County Auditor's Annual Reports;

Table 7.

CH ART 4 HAWAII TAX COLLECTIONSState and Counties: Fiscal 1968

CORPO RATE IN CO M E TAX B A N K AN D F IN AN CE $12,691,426 (3.76%)

G RANTS-IN -A II TO C O U N T IES

$11,427,103 (3.38%)

STATE SP E C IA L FUND $26,173,223 (7.75%)

STATE FU EL TAX H IGHW AY & A IR PO RT

$14,704,975 (4.35%)

UN EM P. COMP. & L IC E N S E S $11,488,248 (3.39%)

MOTOR VEH IC LE W EIG HT AND O THER TAXES $13,731,277 (4.06%)

NOTES: Details do not agree exactly with data in Table 7 because of different sources. Real property taxes adjusted for delayed collections estimated at $29,500,000 in 1968 for 1967.

a. Includes: Liquor, Tobacco, Insurance Premiums, Public Service Company, Inheritance & E state, and Conveyance Taxes; and business and non-business licenses and permits.

SO U RCE: Departments of Accounting & General Services and Taxation, State of Hawaii, and Table 7.

16

STATE AND LOCAL TAX BURDENTax Collections Related to Population and Personal Income

All States — Fiscal Years 1967 and 1968

TABLE 9

state

Per Capita Tax Collections^Fiscal 1967

Amount RankFiscal 1968° % Change

Amount Rank from 1967

Per Capita Tax as a % of Per Capita Income^1967

Rank1 9 6 8

RankHAWAII $406.75 $426.09 4.75 13.05 12.79U.S. AV. 309.51 352.17 13.78 10.39 11.15Ala.AlaskaA riz.Ark.Calif.Colo.Conn.Del.Fla.Ga.Idaho1 1 1.Ind.IowaKan.Ky.La.Me.Md.Mass.Mich.Minn.Miss.Mo.Mont.Neb.Nev.N. H. N. J. N. M. N. Y. N. C. N. D. Ohio Okla. Ore. Pa.R. I.S. C.S. D.Tenn.TexasUtahVt.Va. Wash. W. Va. Wise. Wyo.^ C.

192.05311.85318.52198.79 414.55346.80 332.14 339.94274.59224.81293.97 298.24308.07328.04 314.75 213.09260.87264.54324.87368.55 322.70 356.99 196.74 260.27 299.63 271.89381.04257.08315.07275.47457.84 223.80266.55249.04 258.32313.98280.04 296.42 197.01287.60 211.78 228.93287.47 307.40239.07355.84 223.58 354.45 366.19 339.83

51211748

21013 1132432725 2214194636 35155

167

5037 2433 4

3918 31

14434403820 3026492847 42 29 23418

45 96

_12_

209.99318.33330.14198.56 553.92359.98351.18 344.09296.95244.19310.44 353.59323.33364.96312.57230.27 274.41290.43383.05398.45390.85433.27206.77276.77 343.48386.78 443.76285.89357.50287.15508.33234.98 319.55 291.39272.96314.69315.05 339.91198.44 310.32232.69244.51298.28340.85 272.07379.90 253.72 379.22 455.12372.06

48 262350

115 1819334430 1724 14 29 473935 1078 5

49 3820 9 4

371636 2

45253440 28 27 22513146 4332 2141 1142 123

_13_

9.34 2.08 3.65

- 0.1233.623.80 5.73 1.22 8.14 8.62 5.60

18.564.95

11.25 - 0.69

8.065.199.79

17.918.11

21.1221.375.106.34

14.6342.2616.46 11.2113.47 4.24

11.035.00

19.88 17.015.670.23

12.5014.670.737.909.876.813.76

10.88 13.806.76

13.48 6.99

24.299.48

9.319.03

12.40 9.79 11.95 11.888.909.76

10.379.47

12.17 8.39

10.0810.85 10.919.50

11.4410.5810.04 11.209.84

12.2811.169.26

11.269.21

10.899.04 9.09

11.6213.019.82

11.05 8.08

10.4910.719.349.649.56

11.659.458.95

11.5211.609.13

10.8810.2811.8513.188.82

40464

3278

4833 2637

650 28 2219 36142429 16305

1741154220 45 44 113

31185125 23 393435 103847 13 1243 21 2791

49

9.71 8.52

12.149.46

15.11 11.488.859.45

10.41 9.61

12.069.43

10.12 11.74 10.219.49

11.1710.9311.2011.2511.5113.9010.91 9.25

12.42 12.55 12.399.369.75

11.5913.52 9.63

12.859.07

10.3310.279.89

1 0 . 2 18.97

11.989.72 8.91

11.4512.079.70

10.7910.8712.0215.169.02

36 51 1041

21850422739 124332153040 2223 21 20 173

2445 8 7 9

4434164

385

4628 29333148 143549 19 1137 2625 13

147

a. Population excluding armed forces overseas for July 1, 1967 and 1968 asestimated by the U. S. Department of Commerce.

b. Fiscal year taxes as a percent of prior calendar year personal income.c. Computed from preliminary State Tax Collections according to percentages

estimated by the U. S. Department of Commerce for fiscal 1967.SOURCE: State Tax Collections in 1968, Governmental Finances in 1966-67, and

Survey of Current Business, August, 1968, U. S. Department of Commerce.

17

GENERAL EXCISE TAX COLLECTIONS State of Hawaii — Selected Fiscal Years

TABLE 10

Activities 1968 1967 1963Change 1968 from 1967

Amount PercentRetailing Services Contracting Theater, Radio, Amusement Interest Commissions Rentals Airlines Use (4%)®All Others

$ 53,396,929 12,966,911 15,281,9711,331,8451,179,6442,647,45115,600,979

( d )1,909,9301,788,544

$ 49,001,918 11,684,152 14,795,4401,249,9291,009,7322,360,896

13,227,025( d)

2,009,5111,571,988

$31,431,7517,878,9149,160,568

779,824757,529

1,489,5446,832,359

563,3941,133,258960,647

$4,395,1111,282,759

486,53181,916

169,912286,555

2,373,954

8.9710.983.296.55

16.8312.1417.95

99,581 - 4.96216,556 13.78

Sub-Total $106,104,204 $ 96,910,491 $60,987,788 $9,193,713Sugar Process. Pine Canning

888,207593,774

834,030608,694

$ 1,896,739 1,483,341

$ 54,177 6.50- 14,920 - 2.45

$ 1, 4 81,981 $ 1, 442,724 $ 3, 380,080 39,257ProducingManufacturing^

332,1451,079,601

313,775 $1,077,383

272,584817,159

18,3702,218

5.850.21

Sub-Total $ 1,411,746 $ 1,391,158 $ 1,089,743 20,588Wholesaling Intermediary Services

Use (l/2%)a Blind Vendors

$ 3,039,456 $ 2,740,718 $ 1,915,83288,710

1,671,1105,658

71,2111,381,954

3,73759,172

162,3882,147

$ 298,73817,499

289,156 ______ 1,921

24.5720.9251.40

Sub-Total $ 4,804,934 $ 4,197,620 S 2,139,539 $ 607,314Insurance Solicitors Penalties and Interest

Licenses & Fees Estimated Tax Disaster Claims Refunds

244,104 $312,670158,83658,953

205,631 $ 117,453 38,473 18.71186,117150,50510,926

363,284138,113

430,424

126,553 68.008,331 5.54

68,879 -46.04

GRAND TOTAL $114,459,522 $104,495,172 $67,785,576 $9,964,350 9.54NOTE; Data for 1967 and 1968 are not strictly comparable with prior years in that

"Disaster Refunds" are not specified, but are deducted from tax collections, a. Consumption and Compensating Taxes replaced with Use Tax (at same rates)

effective January 1, 1966.Includes canning other than pineapple.Net payments of estimated taxes.Subject to Public Service Companies Tax effective January 1, 1964,

b.d.SOURCE: Reports of the Department of Taxation, State of Hawaii.

TABLE 11

DISTRIBUTION OF STATE GRANTS-IN-AIDSelected Fiscal Years

State of Hawaii; By Counties

County 1968 1967 1963Change 1968

Amountfrom 1967 Percent

Honolulu $ 2,566,775 $ 2,067,373 $10,676,963 $499,402 24.16Hawaii 3,758,696 3,637,977 3,882,532 120,719 3.32Maui 2,797,345 2,623,604 2,911,899 173,741 6.62Kauai 2,304,287 2,178,298 1,941,266 125,989 5.78Total $11,427,103 $10,507,252 $19,412,660 $919,851 8.75NOTE: Distribution to counties changed from tax sharing to grants-in-aid effective

July 1, 1965. Includes General Excise, Use Tax and taxes on Motor and Contract Carriers subject to Public Service Company taxes after January 1, 1964.

SOURCE; Department of Taxation, State of Hawaii

18

LIQUID FUEL TAX COLLECTIONSState of Hawaii — Selected Fiscal Years

TABLE 12

Type of Fuel

OAHUGasoline Other Highway Other Non-Hwy. Aviation Small Boat®

Tax Per Gallon 1968 1967 1966 1963

STATE TAX REVENUES

5«? $ 7,626,849 $ 7,291,415 $ 6,814,000 $5,846,7355C 210,231 183,294 190,910 146,3541C 224,408 219,015 252,158 191,6681C 3,563,480 2,994,626 2,075,584 1,165,306

1C & 5C________ 26,592_________26,593________26,907______ 23,117TOTAL OAHU $11,651,559 $10,714,943 $ 9,359,559 $7,373,180

Gasoline Other Highway Other Non-Hwy. Aviation Small Boat® 5C

685,583 24,323 90,767 18,835 2,607

653,609 25,416 71,118 10,239

^434

630,77919,26055,0588,7732,123

560,9819,852

47,9175,1373,885

TOTAL MAUI 822,115 $ 762,816 $ 715,993 $ 627,772HAWAII

Gasoline 8C $ 1,499,782 $ 1,379,684 $ 1,316,617 $1,143,312Other Highway 8C 91,947 79,014 80,263 66,211Other Non-Hwy. 1C 71,813 73,437 70,153 59,334Aviation 1C 97,856 28,932 20,222 10,381Small Boat® 1C & 8C 5,539 5,072 4,066 3,730

TOTAL HAWAII $ 1,766,938 $ 1,556,139 $ 1,491,321 $1,282,968KAUAI

Gasoline 5C $ 4 4 5 , 2 4 3 S 4 1 8 , 0 8 4 $ 4 1 4 , 3 3 9 S 3 8 1 , 4 1 8Other Highway 5C 1 6 , 9 5 5 1 3 , 2 0 8 1 3 , 5 6 7 8 , 5 1 9Other Non-Hwy. 1C 3 2 , 7 9 4 2 9 , 4 9 7 3 2 , 9 3 7 2 7 , 9 8 1Aviation 1C 4 , 1 0 9 2 , 7 7 7 2 , 1 1 0 1 , 1 6 1Small Boat® 1C & 5C 8 4 6 9 6 5 8 1 4 2 , 4 1 7

TOTAL KAUAI - - ? 4 9 9 , 9 4 7 ? 4 6 4 , 5 3 1 $ 4 6 3 , 7 6 7 9 4 2 1 , 4 9 6ALL COUNTIES

Gasoline — $ 1 0 , 2 5 7 , 4 5 6 $ 9 , 7 4 2 , 7 9 2 S 9 , 1 7 5 , 7 3 5 $ 7 , , 9 3 2 , 4 4 6Other Highway — 3 4 3 , 4 5 7 3 0 0 , 9 3 2 3 0 4 , 0 0 0 2 3 0 , 9 3 6Other Non-Hwy. — 4 1 9 , 7 8 2 3 9 3 , 0 6 7 4 1 0 , 3 0 6 3 2 6 , 9 0 0Aviation — 3 , 6 8 4 , 2 8 0 3 , 0 3 6 , 5 7 4 2 , 1 0 6 , 6 8 9 1, , 1 8 1 , 9 8 5Small Boat® — 3 5 , 5 8 4 3 5 , 0 6 4 3 3 , 9 1 0 3 3 , 1 4 9

TOTAL ALL COUNTIES — $ 1 4 , 7 4 0 , 5 5 9 $ 1 3 , 5 0 8 , 4 2 9 $ 1 2 , 0 3 0 , 6 4 0 $ 9 , , 7 0 5 , 4 1 6

COUNTIES TAX REVENUESOAHU

Gasoline 3 - 1 / 2 C S 5 , 3 3 8 , 7 9 4 $ 5 , 1 0 3 , 9 9 0 $ 4 , 7 6 9 , 8 0 0 $ 4 , , 0 9 2 , 7 1 4Other Highway 3 - 1 / 2 C 1 4 7 , 1 6 2 1 2 8 , 3 0 6 1 3 3 , 6 3 7 1 0 2 , 4 4 8

TOTAL OAHU — $ 5 , 4 8 5 , 9 5 6 $ 5 , 2 3 2 , 2 9 6 $ 4 , 9 0 3 , 4 3 7 $ 4 , , 1 9 5 , 1 6 2

MAUIGasoline 5C $ 6 8 5 , 5 8 3 $ 6 5 3 , 6 0 9 $ 6 3 0 , 7 7 9 $ 5 6 0 , 9 8 2Other Highway 5C 2 4 , 3 2 3 2 5 , 4 1 6 1 9 , 2 6 0 9 , 8 5 2

TOTAL MAUI — $ 7 0 9 , 9 0 6 $ 6 7 9 , 0 2 5 $ 6 5 0 , 0 3 9 $ 5 7 0 , 8 3 4

HAWAIIGasoline 3C ? 5 6 2 , 4 1 8 $ 5 1 7 , 3 8 2 $ 4 9 3 , 7 3 1 $ 4 2 8 , 7 4 2Other Highway 3C 3 4 , 4 8 0 2 9 , 6 3 0 3 0 , 0 9 9 2 4 , 8 2 9

TOTAL HAWAII — $ 5 9 6 , 8 9 9 $ 5 4 7 , 0 1 2 $ 5 2 3 , 8 3 0 $ 4 5 3 , 5 7 1

KAUAIGasoline 4C $ 3 5 6 , 1 9 4 $ 3 3 4 , 4 6 7 $ 3 3 1 , 4 7 1 $ 3 0 5 , 1 3 4Other Highway 4C 1 3 , 5 6 4 1 0 , 5 6 7 1 0 , 8 5 4 6 , 8 1 5

TOTAL KAUAI — ? 3 6 9 , 7 5 9 $ 3 4 5 , 0 3 4 ? 3 4 2 , 3 2 5 ? 3 1 1 , 9 4 9

ALL COUNTIESGasoline - - $ 6 , 9 4 2 , 9 8 9 $ 6 , 6 0 9 , 4 4 8 $ 6 , 2 2 5 , 7 8 1 $5 , , 3 8 7 , 5 7 2Other Highway — 2 1 9 , 5 2 9 1 9 3 , 9 1 9 1 9 3 , 8 5 0 1 4 3 , 9 4 4

TOTAL ALL COUNTIES - - $ 7 , 1 6 2 , 5 1 8 S 6 , 8 0 3 , 3 6 7 $ 6 , 4 1 9 , 6 3 1 $5 , , 5 3 1 , 5 1 6

NOTE: Detail may not add to total due to rounding,a. Fuel other than gasoline taxed at 1C per gallon.SOURCE: Reports of the Director of Taxation, State of Hawaii.

19

SO U R C ES OF STATE GO VERNMENT OPERATING REVEN U ESHawaii — Fiscal 1968

CHART 5

STATE GENERAL FUND STATE GENERAL AND SPEC IA L FUNDS

OTHER S P E C IF IC E X C ISE S

FU EL TAX $14,740,559 — 3.53%

ALL OTHER GRANTS 533,698,993

8.06%

REPAYM EN T OF ADVANCES 56,559,590

1.57%

SO U RCE; Report of the Comptroller, F iscal 1968, State of Hawaii.

STATE REVENUE RECEIPTSH aw aii — F isca l Years 1967 and 1968

TABLE 13

Fiscal 1968

Source of RevenuesGeneralFunds

SpecialFunds Total

GeneralFunds

F iscal 1967SpecialFunds Total

Tax RevenuesGeneral Excise $114,518,475Special Excises® 27,316,247Individual Income 70,312,082Corporate Income 11,196,353Unemployment Compensation —Other Taxes, Licenses & Permits*’ 3,876,788

14,704,975

11,448,8237,621

$114,518,47542,021,22270,312,08211,196,35311,448,8233,884,409

$104,459,94123,697,23663,511,96110,525,2103,864,605

13,473,365

10,751,1375,300

$104,459,94137,170,60163,511,96110,525,21010,751,1373,869,905

Sub-Total Taxes $227,219,945 $26,161,419 $253,381,364 $206,058,953 $24,229,802 $230,288,755Fines, Forfeits and Escheats Federal Grants-in-Aid Revenues from Other Agencies Rents, Royalties & Land Income Sales of Real Property Earnings - General Departments Earnings - Public Serv. Enterp. Sales of Investments Repayment Advances to Other

Civil Divisions Repayment Debt Cost: CountiesInterest Earned Miscellaneous

$ 1,756,05177,314,832

187,3942,305,550

16,046,357344,933

$ 14,09727,242,281

246,382 1,376,699

618,841 5,315,887

10,131,286

$ 1,770,148104,557,113

433,776 3,682,249

618,841 21,362,244 10,476,219

3,477,8372,202,918d1,003,746

3,081,7532,388,9529,665,8046

3,081,7533,477,8374,591,870

10,669,550

$ 1,771,00576,954,792

123,449 2,129,2989,658,206

295,628

3,557,8162,103,658d

854,827

$ 11,50626,243,413

107,131 1,183,470 1,135,898 4,729,186 7,630,273 2,735,7132,360,3712,337,5049,375,6626

$ 1,782,511103,198,205

230,580 3,312,768 1,135,898

14,387,392 7,925,901 2,735,7132,360,3713,557,8164,441,162

10,230,489Totalc $331,859,563 $86,243,401 $418,102,964 $303,507,632 $82,079,929 $385,587,561a.b.c.d.

Includes Public Utilities, Tobacco, Liquor, Insurance and Fuel taxes.Includes Franchise tax. Inheritance and Estate taxes. Conveyance tax, business and non-busintss licenses and permits.Excludes transfers and repayments except as shown.Excludes repayments of interest on state bonds from special fund agencies to avoid duplication.Includes public school cafeteria sales of $6,566,049 in 1968 and $6,489,978 in 1967.

SOURCE: Annual Reports of the Comptroller, State of Hawaii.

TABLE 14

STATE GENERAL SALES TAX DATATax Rates at January 1, 1969

stateRetail

StateRateaLocal

OtherRatesb

FoodTaxable®

DrugsTaxable^

HAWAII 4.0e — 0.5 Yes YesAlabama 4.0 2.0 — Yes YesAlas)ta — 3.0 - - Yes YesArizona 3.0 1.0 — Yes NoArkansas 3.0 — — Yes YesCalifornia 4.0 2.0 — No NoColorado 3.0e 2.0 — Yes NoConnecticut 3.5 — — No NoFlorida 4.0 — — No NoGeorgia 3.0 — — Yes YesIdaho 3.0 — — Yes NoIllinois 4.25 0.75 — Yes YesIndiana 2.0® -- 0.5 Yes NoIowa 3.0® — — Yes YesKansas 3.0 — — Yes YesKentucky 5.0 — — Yes YesLouisiana 2.0 2.0 — Yes YesMaine 4.5 — — No NoMaryland 3.0 — — No NoMassachusetts 3.0® — — No NoMichigan 4.0 — — Yes YesMinnesota 3.0 — — No NoMississippi 5.0 — 0.125 Yes YesMissouri 3.0 — — Yes YesNebraska 2.0® — — Yes NoNevada 2.0 1.0 — Yes YesNew Jersey 3.0 — — No NoNew Mexico 3.0 1.0 — Yes YesNew York 2.0 3.0 — No NoNorth Carolina 3.0 1.0 — Yes NoNorth Dakota 3.0 — — Yes NoOhio 4.0 — — No NoOklahoma 2.0 1.0 — Yes YesPennsylvania 6.0 — — No NoRhode Island 5.0 — — No NoSouth Carolina 3.0 — — Yes YesSouth Dakota 3.0 — — Yes YesTennessee 3.0 1.5 — Yes YesTexas 3.0 1.0 — No NoUtah 3.0 0.5 — Yes YesVirginia 3.0 1.0 — Yes NoWashington 4.5 — 0.44 Yes YesWest Virginia 3.0 — 0.8 Yes YesWisconsin 3.0 — — No NoWyoming 3.0 — — Yes YesDist. Columbia — 4.0 — Yes (1%) Noa. Generally on tangible personalty only, although a few states (including

Hawaii) tax selected services. Local rate is highest imposed.b. Hawaii levies the tax on wholesaling, producing and manufacturing; In

diana on wholesaling and producing; Mississippi on wholesaling; W a s h ington on wholesaling and manufacturing; and West Virginia on m a n u facturing.

c. Food for home consumption; restaurant meals are taxable in all states.d. Generally limited to prescription medicine and drugs, although some

states exempt various other medical items such as patent medicines, baby supplies, eyeglasses, and artificial limbs.

e. Sales tax credits granted against income taxes.

S O U R C E : State Tax Guide, All States Unit, Commerce Clearing House, Inc.; Tax Administrators News, Federation of Tax Administrators.

22

TABLE 15

STATE FUEL, TOBACCO AND LIQUOR TAXESTax Rates at January 1, 1989

stateMotor Fuel Tax® (C Per Gallon) State Local

Tobacco Cigarettes («J Per Pack)

TaxesOther

ProductsLiquor

(Per Gal.)HAWAII 5.0 6.0 40% Whlse.^ Yes 20% WholesaleAlabama 7.0 2.0 10.0 Yes 30% RetaildAlaska 8.0 — 8.0 No $4.00Arizona 7.0 — 10.0 Yes 2.00Arkansas 7.5C — 8.0 No 2.50California 7.0 — 10.0 No 2.00Colorado 6.0 — 5.0 No 1.80Connecticut 7.0 -- 8.0 No 2.00Delaware 7.0 — 7.0 NO 2.00Florida 7.0 — 15.0 No 7.50Georgia 6.5 — 8.0 Yes 3.75Idaho 7.0 7.0 No (d)Illinois 6.0 — 9.0 No 1.52Indiana 6.0 — 6.0 No 2.08Iowa 7.0C — 10.0 10% Whlse. (d)Kansas 5.0^ — 8.0 No 1.50Kentucky 7.0 — 2.5 No 1.28Louisiana 7.0 — 8.0 Yes 1.68Maine 7.0 — 10.0 No 0.75<JMaryland 7.0 — 6.0 No ' 1.50Massachusetts 6.5 — 10.0 No 2.95Michigan 7.0 — 7.0 No 8% Retail‘dMinnesota 7.0 -- 8.0 10% Whlse. 2.875Mississippi 7.0C 2.0 9.0 Yes 2.50Missouri 5.0 — 4.0 No 1.20Montana 6.5C — 8.0 No 16% RetaildNebraska 7.5 — 8.0 No 1.60Nevada 4.5 2.5 7.0 No ^ 1.40New Hampshire 7.0 — 30% Retail on all Tobacco*^ (d)New Jersey 7.0 — 14.0 No 1.80New Mexico 7.0 — 12.0 No 1.50New York 7.0^ — 12.0 No 2.25North Carolina 7.0 -- — No 12% RetaildNorth Dakota 6.0 — 8.0 11% Whlse. 2.50Ohio 7.0 -- 7.0 No (d)Oklahoma 6.58 — 13.0 Yes 2.40Oregon 7.0 — 4.0 NoPennsylvania 7.0 — 13.0 No 18% RetaildRhode Island 8.0 - - 13.0 25% Whlse. 2.00South Carolina 7.0 — 5.0 Yes 2.72South Dakota 6.0C — 8.0 No 1.25Tennessee 7.0C — 8.0 Yes 4.00Texas 5.0C - - 11.0 Yes 1.68Utah 6.0 — 8.0 No 8% RetaildVermont 8.0^ — 10.0 20% Whlse. 5.10dVirginia 7.0 — 2.5 No 10% Retail'^Washington 9.0 — 11.0 30% Whlse. (d)West Virginia 7.0 - - 7.0 No (d)Wisconsin 7.0 — 10.0 No 2.25Wyoming 6.0^ 1.0 8.0 No o.aodDist. Columbia — 7.0 3.0 No 1.75a. Excludes aviation fuel and other non-highway fuel tax. Local rate is

highest rate imposed, or permitted.b. Tax is approximately 8t per pack in Hawaii and 7C in New Hampshire.c. Rate for diesel fuel for highways differs in: Texas, 6.5t; Kansas,

South Dakota and Wyoming, 7C; Iowa and Tennessee, 8t; Arkansas, 8.5t; Montana and New York, Mississippi, 104; and tax exempt in Vermont.

d. Monopoly states. Revenues received through markup plus taxes, except markup only in New Hampshire and Oregon. In Pennsylvania, manufacturers and importers pay a tax of $1.00 per gallon.

SOURCE: State Tax Guide, All States Unit, Commerce Clearing House, Inc.;Tobacco Tax Council; Tax Administrators News, Federation of TaxAdministrators; Department of Taxation, State of Hawaii.

23

STATE PERSONAL INCOM E TAX OATAAt January 1, 1969

TABLE 16

Up to

Steps PersonalIn _____ Exemptions_____

Range Single* Dependent

AlabamaArizonaColorado^DelawareIdaho®IowaKansasKentuckyLouisianaMassachusetts^MinnesotaMissouriMontanaNorth DakotaOklahom aOregonSouth Carolina Utah

HAWAII

1.5%2 . 03.01.52.5 0.752.0 2.0 2.04.01.51.0 2.0 1.0 1.03.02 . 0 2 . 0

2.25

FEDERAL INCOME TAX DEDUCTIBLE^ $ 1,000

1 , 0 0 0 1 , 0 0 0 1 , 0 0 0 1 , 0 0 0 1 , 0 0 0 2 , 0 0 0 3,000

1 0 , 0 0 0 Flat Rate

5001,0001,0003.000 1,500

5002 . 0 0 0 1,000

5.0%8.08 .0

11.09.0 5.256.56 . 0 6 . 0

12.04.0

10.0 11.0

6 . 09.5 7.06.5

$ 5,0006,000

10,000 100,000

5.0009.0007.0008 . 0 00

50.00020.0009.000

25.00015.000 7,5008 . 0 00

10.000 5,000

47

11116955 3

1178 76 7 6 6

FEDERAL INCOME TAX NOT DEDUCTIBLE500 11.0 30,000 11

$1,500 $1,000

750©600600+10^15©

60020f

2,5002,000a,e19f

1,200600600*

1,000600800600

600

300600750©600600+10^10©

60020f

400600®19f

400600600500600800600

600AlaskaArkansasCaliforniaGeorgiaIndianaMarylandMichiganMississippiNebraskaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaTennesseeVermontVirginiaWest VirginiaWisconsinDist. Columbia

16% of federal tax rates in effect 12/31/6317.50f25f

1,5001,000®

8001,2004,000®

600®

1.0 3,000 5.0 25,000 51.0 2,000 10.0 14,000 101.0 1,000 6.0 10,000 62.0% of adjusted gross income2.0 1,000 5.0 3,000 42.6% of federal adjusted gross income3.0 5,000 4.0 5,000 2

10.0% of adjusted federal tax liability4.25% of interest and dividend income in excess of $6002.0 1,000 14.0 23,000 13 600+10f1.5 10,000 6.0 100,000 4 6002.0 1,000 14.0 23,000 13 600+10f3.0 2,000 7.0 10,000 5 1,0004% or 6% on income from stocks and bonds if greater than 25% of federal tax liability 6002.0 3,000 5.0 5,000 3 1,0001.2 2,000 5.5 200,000 24 6002.7 1,000 10.0 14,000 15 lOf2.0 1,000 6.0 10,000 5 1,000

6f8f

600500®800

1,200600®6006006006009

$25600300600lOf

500a. Double exemption or credit for joint returns except; $2,500 in Massachusetts,-

$6,000 in Mississippi; $1,500 in North Dakota.b. Generally limited to federal taxes on income taxed by the state. Further

limitations: in Delaware, to $300 on single or $600 on joint returns; inKentucky, to federal tax rates in effect prior to December 31, 1967; in Massachusetts, to 50% of tax on business and professional income; in Oregon, to the lessor of federal taxes paid for the tax year, or an amount determined by applying federal tax rates in effect on November 1, 1967 minus federal income tax credits; and in South Carolina, to $500.

c. Colorado imposes an additional 2% surtax on certain Incomes above $5,000; andIdaho levies a $10 excise tax on each person filing a return except persons who are blind or are receiving public welfare.

d. Tax applies to business or employment income. Other rates are 2.0% on annuities and 8.0% on interest, dividends and gain on sale of intangibles.

e. Additional tax credits allowed: Colorado, $7 per personal exemption for salestax paid on food; Hawaii permits three kinds of graduated credits ranging from $50 to $1 (see Table 26, page 32); Indiana, $8 per dependent for sales taxes paid on food and drugs; Iowa, $12 to $2 for sales taxes paid; Massachusetts,$4 to each income taxpayer whose income together with his spouse does not exceed $5,000, plus $4 for his spouse and $8 for each dependent; and Nebraska,$7 per personal exemption for sales tax paid on food.

f. Deducted from computed tax liability.g. Double exemption for college student dependents.SOURCE: State Tax Guide, All States Unit, Commerce Clearing House, Inc.; Tax

Administrators News, Federation of Tax Administrators, Chicago, Illinois.

24

STATE CORPORATION NET INCOME TAXRates and Estimated Burden on Selected Incomes

January 1, 1969

TABLE 17

Net Estimated Stete Income TaxOperating _______on Net Taxable Income of______

Lossa $5,000 $50,000 $500,000 $1,000,000FEDERAL CORPORATION TAX DEDUCTIBI.Eb

AlabamaArizonaC,d

lowad

KansasKentucky‘SLouisiana Minnesota Missouri North DakotadOklahomacUtahcWisconsinc,d

HAWAIIc,d

5%2% on 1st $1,000 8% over $6,000 4% on 1st $25,000 8% over $100,000

4.5%5% on 1st $25,000 7% over $25,000

4%f11.33%, Min. SIO

2%3% on 1st $3,000 6% over $15,000

4%6%, Min. $10 2% on 1st $1,000 7% over $6,000

NoneCP-5, CB-1CF-5, CB-3 CF-5, CB-3

CF-l® None

CF-5, CB-3 None

CF-5, CB-3 None None

$ 192 $ 1,579125 2,16817717719732

44276

123147231

1,9531,4951,8371,1343,706

6221,6371,2071,9052,762

$ 12,487 $18,54227,81312.25718,7869,813

29,3024,915

14,7989,54615,06629.257

FEDERAL CORPORATION TAX NOT DEDUCTIBLE5.85% to $25,000 6.435% over $25,000 CF-5, CB-3 2,886

24,607

57,88923,66437,61919,45757,7429,68529,42118,81129,69058,696

60,322Alaska 18% of Federal9 CF-5, CB-3 270 3,690 45,810 92,610Arkansasd 1% on 1st $3,000

5% over $25,000 CF-3 70 2,050 24,550 49,550California 7%, Min. $100 None 350 3,500 35,000 70,000Colorado 5% CF-5, CB-3 250 2,500 25,000 50,000Connecticutc,e 5.25%, Min. $30 None 249 2,494 24,941 49,881Delaware 5% CF-5, CB-3 250 2,500 25,000 50,000Georgia 5% CF-5, CB-1 250 2,500 25,000 50,000Idaho 6% Plus

$10 Excise Tax CF-5, CB-3 310 3,010 30,010 60,010Indiana 2% CF-5, CB-3 100 1,000 10,000 20,000Maryland 7% None 350 3,500 35,000 70,000Massachusetts 7.5%, Min. $100 None 375 3,750 37,500 75,000Michigan 5.6% CF-5, CB-3 280 2,800 28,000 56,000Mississippid 3% on 1st $5,000

4% over $5,000 CF-5 150 2,000 20,000 40,000Montana 5.5%, Min. $10 None 275 2,750 27,500 55,000Nebraska^ 2% of Federalh CF-5, CB-3 22 347 4,626 9,380New Jersey^ 4.25% None 213 2,125 21,250 42,500New Mexicoc 3% CF-5, CB-3 146 1,456 14,563 29,126New York® 7%, Min. $100 CF-5, CB-3 350 3,500 35,000 70,000North Carolina 6% CF-5 300 3,000 30,000 60,000Oregon 6%, Min. SIO CF-5 300 3,000 30,000 60,000Pennsylvaniac 7.5% None 349 3,488 34,883 69,767Rhode Island® 7% None 350 3,500 35,000 70,000South Carolina 5% CF-3a 250 2,500 25,000 50,000Tennesseee 5% CF-2 238 2,381 23,810 47,619Vermont‘S 5%, Min. $25 CF-5, CB-3 238 2,381 23,810 47,619Virginia 5% CF-3a 250 2,500 25,000 50,000West Virginia 6% CF-5, CB-3 300 3,000 30,000 60,000Dist. Columbia 6% None 300 3,000 30,000 60,000NOTE: In certain states, specific credits are allowed against the computed tax. Be

cause of variations, details are not shown. The following states authorize one or more cities to levy a corporate income tax: Colorado, Kentucky, Michigan,Missouri, New York, and Ohio (no state corporate levy).

a. Number of years carry forward and/or carry back of net operating loss. In Kentucky, carry forward permitted only for new business suffering loss in first year; in South Carolina, for new business if loss occurs during first three years; in Virginia, for manufacturing only.

b. Limited to federal tax on income taxed by the state, except in Utah. Further limited in Wisconsin to 10% of net income before deductions for contributions and federal taxes; in Iowa, to 50% of federal taxes paid; and in Kansas and Kentucky, to federal taxes payable on tax rates in effect on December 31, 1967. Estimated tax computations include the federal 10% surtax, except in Kansas and Kentucky.

c. These states allow the state tax as a deduction in computing the state tax.d. Rates graduated.e. An alternate method of computation must be used if it yields a greater tax.f. Domestic corporations receive exemption of $3,000 (prorated by foreign corpora

tions) .On federal tax payable at rates in effect on December 31, 1963.On federal income tax liability excluding the 10% surcharge.9‘ h.

SOURCE: State Tax Guide, All States Unit, Commerce Clearing House, Inc., New York. Estimated tax liability computed by the Tax Foundation of Hawaii.

25

REAL PROPERTY VALUATIONS IN HAWAIIAt January 1,1968 — By Counties^

(Am ounts in Thousands)

TABLE 18

Type of Properties Honolulu Maui Hawaii Kauai Total PercentSugarPineappleRanchHomes Fee

Leasehold Government: Federal

State Counties

Public Utilitiesc Miscellaneous Exempt^ All Others

? 46,18315,219 7,131

1,026,002 481,152 631,412 641,495 193,868 32,938

257,461 1,901,261

$ 26,998 14,285 9,958

79,881 1,253 1,591

19,446 11,311 1,575

13,304 105,836

$ 33,054

17,40589,5712,7424,054

53,6704,7002,075

12,544157,058

34,6211,0242,719

36,752242754

13,8315,816

2825,464

46,523

S 140,856 30,529 37,213

1,232,206 485,389 637,811 728 ,442 215,695 36,870

288,773 2,210,678

2.33 0.51 0.62

20.39 8 .03

10.55 12.05 3.57 0.61 4.78

36.57Total Gross Valuations $5,234,122 $285,438 $376,873 $148,028 $6,044,461 100.00%Exempt Property

Government Public Utilitiesc Homes: b Fee

LeaseholdOther d

$1,466,77532,938

270,16197,670

257,461

$ 32,348 1,575

37,307 289

13,304

$ 62,424 2,075

44,622 970

12,544

$ 20,401 282

18,442 139

5,464

$1,581,94836,870

370,53299,068

288,773

26.170.616.131.644.78

Sub-Total Exemptions $2,125,005 $ 84,823 $122,635 $ 44,728 $2,377,191 39.33Taxable Values Less: 50% of Appeals

$3„109,11724,723

$200,6151,175

$254,238923

$103,3001,234

$3,667,27028,055

60.670.46

Net Taxable Values $3,084,394 $199,440 $253,315 $102,066 $3,639,215 60.21a. Gross valuations assessed at approximately 70% of mar)tet value.b. Owner occupied homes. Exempt value includes land and building on fee simple property, and buildings

only on leased property. Basic exemption $4,700; additional exemption based on bracket schedule toa maximum $5,500 on properties valued at $6,000 or more. Multiple exemptions for aged.

c. Exempt from property taxation since subject to special public utility excise tax.d. Includes non-profit educational, religious, community, hospital, veterans' cemetery, Hawaiian Homes

Commission, and other designated properties.SOURCE: Reports of the Department of Taxation, State of Hawaii.

TRENDS IN REAL PROPERTY TAX BASEState of Hawaii: By Counties^

TABLE 19

Fiscal YearbCity & County of Honolulu

MauiCounty

HawaiiCounty

KauaiCounty

AllCounties

1969=ResidentialHotel-Apt.CommercialIndustrialAgriculturalConservation

$ (3,084,393,862)^ Land 1,025,605,301Bldg. 481,524,479Land 260,819,143Bldg. 312,414,780Land 286,956,553Bldg. 241,668,719Land 266,795,992Bldg. 122,040,270Land 66,609,051Bldg. 11,601,634Land 7,352,661Bldg. 1,005,279

8(199,440,677)49,780,26526,565,57916,666,49014,037,3537,902,3829,050,8367,137,716

10,615,97148,835,1317,973,701

616,363258,890

8 (253,314,549)'^ 55,064,541 29,623,949 14,935,977 17,152,665 15,337,834 14,839,953 9,206,245

12,093,448 71,836,314 11,373,439 1,507,464

342,720

8(102,066,340)23,877,77214,816,6577.053.939 7,430,132 4,436,459 7,698,5011.647.9404,641,228

23,289,2244,417,3252,304,168

452,995

8(3,639,215,428) 1,154,327,879 '

552,530,664 299,475,549 351,034,930314,633,228 273,258,009 284,787,893 149,390,917201,569,720 35,366,099 11,780,656 2,059,884

Calendar Year 1967=1966=1965=196419631962196119601959

2,884,2,601,2,343,2,166,1,948,1,840,1,660,1,527,

935,

242,634<i522,866d365,686d552,480146,471901,885997,414489,601702,435

198,424,615175,253,711151,584,951141,582,814115,443,575109,804,944106,985,329103,559,42174,984,399

234,874,02ld206,693,311<3174,697,352<3162,905,282140,795,860130,910,138125,607,541125,709,42194,733,725

98,652,66885,595,59379,513,87373,511,60066,516,94264,855,27764,761,69863,345,31046,977,251

3,4163,0692,7492,5442,2702,1461,9581,8201,152

,193,938,065,481,161,862,552,176,902,848,472,244,351,982,103,753,397,810

a. Net assessed valuations for tax rate purposes. Valuations approximately 70% of market value.b. Fiscal 1969 base also used for Jan. 1, 1968 - June 30, 1968 period.c. Effective 1965, buildings and real property exclusive of improvements for each specified land use class

separately valued and assessed.d. Excludes federal leased property assessable to lessee, but not includable for tax rate purposes as

follows: Honolulu 82,519,767 in 1968, $2,200,099 in 1967, $2,126,135 in 1966, and $2,046,924 in 1965;Hawaii 8152,203 in 1968, $152,034 in 1967, $143,508 in 1966 and $135,536 in 1965.

SOURCE: Compiled by the Tax Foundation of Hawaii from reports of the Department of Taxation, State of Hawaii.

TRENDS IN REAL PROPERTY TAX COLLECTIONSState of Hawaii: By Counties

TABLE 20

Fiscal City-County Maui Hawaii Kauai AllYeara Honolulu^ County County County Counties1969C $(59,249,389) $(2,991,725) $(4,531,216) $(1,683,974) $(68,456,304)Residential 28,948,042 1,145,225 1,515,330 638,520 32,247,119Hotel-Apart. 11,013,912 460,629 573,742 238,800 12,287,084Commercial 10,155,466 254,314 540,205 200,268 11,150,253Industrial 7,468,979 266,297 381,066 103,746 8,220,087Agricultural 1,502,433 852,135 1,487,795 457,149 4,299,512Conservation 160,557 13,125 33,078 45,491 252,251

Calendar Year1967 55,393,199 2,936,587 4,243,799 1,632,193 64,20S,779d1966 49,824,636 2,635,836 3,439,502 1,423,384 57,323,35Sa1965 41,772,069 2,276,569 2,895,385 1,307,188 48,251,211d1964 31,805,083 1,987,289 2,567,845e 1,153,561 37,513,77831963 28,517,185 1,611,982 2,056,741 1,030,235 33,216,14331962 25,538,643 1,498,256 1,941,959 1,003,961 29,982,81931961 23,372,074 1,449,369 l,986,124e 1,002,724 27,810,29131960 17,663,443 1,399,385 1,838,194 969,683 21,870,70531959 14,201,069 1,249,499 1,564,326 828,540 17,843,434

Honolulu, $27,715,612; Maul, $1,047,596; Hawaii, $1,762,694; Kauai, $829,582; and all counties, $31,355,484.Includes amounts for Honolulu Redevelopment Agency.Estimated 1969 collections.Reduced by $7,138 (1960); $25,158 (1961); $133,955 (1962); $169,228 (1963); $198,722 (1964); $592,744 (1965); $275,462 (1966); and $215,507 (1967) for various natural disaster claims.Includes amounts for Hawaii Redevelopment Agency.

RCE: Compiled by the Tax Foundation of Hawaii from reports of the Departmentof Taxation, State of Hawaii.

TABLE 21

TRENDS IN REAL PROPERTY TAX RATESState of Hawaii; By Counties

(Rates Per $1,000 Taxable Values)

Fiscal City-County Maui Hawaii Kauai StateYear« Honolulu^ County Countyc County Average^^1969 Average Rate^ $19.21 $15.00 $17.89 $16.50 $18.81

ResidentialLand 19.84 15.54 18.54 17.16 19.54Improvements 17.86 13.99 16.69 15.44 17.55

Hotel-ApartmentLamd 20.32 15.72 18,89 17.39 19.92Improvements 18.29 14.15 17.00 15.63 18.01

CommercialLand 20.13 15.85 18.83 17.62 19.92Improvements 18.12 14.26 16.94 15.86 17.86

IndustrialLand 19.83 15.95 18.97 17.81 19.69Improvements 17.85 14.36 17.07 16.03 17.48

Agricultural 19.21 15.00 17.88 16.50 17.48Conservation 19.21 15.00- 17.88 16.50 18.23

Calendar Year1967 Average Ratee 19.21 15.00 17.90 16.50 18.801966 Average Ratee 19.21 15.00 17.90 16.50 18.801965 Average Ratee 17.71 15.00 17.90 16.50 17.531964 14.66 14.00 17.90 15.50 14.741963 14.66 14.00 16.10 15.50 14.631962 13.89 13.61 16,10 15.50 14.061961 13.89 13,61 16.10 15.50 14.071960 11.70 13.61 15.10 15.50 12.181959 15.15 16.57 16.50 17.52 15.48

Rates for Jan. 1, 1968 - June 30, 1968 period are one-half fiscal 1969 rates.b. Includes additional tax rates for Honolulu Redevelopment Agency.c. Includes additional tax rates in 1961, 1964 and 1965 for Hawaii Redevelopment Agency.d. Total taxes collected in the State divided by total taxable values.e. Computed by dividing taxes to be raised by total taxable values.SOURCE: Compiled by the Tax Foundation of Hawaii from reports of the Department of

Taxation, State of Hawaii.

28

SO U R C ES OF COUNTY GO VERNM ENT REVEN U ES Percentage Distribution— By Counties

Fiscal 1968

CHART 6

10% 20% 30% 40% 50% 00% 70%

REAL PROPERTY TAX

LIQUID FUEL TAX

MOTOR VEHICLEWEIGHT TAX

OTHER TAXES

DEPARTMENTALEARNINGS

STATE AID GRANTS

FEDERAL GRANTS

City and County of Honolulu

County of Maui

Y // /A County of Hawaii

Y///A County of Kauai

142.41%

44.77%

OTHER REVENUES

5.43%

2.62% I

10% 20% 30% 40%

SO U RCE; Tables 22-25 inclusive.

50% 60%, 70%

29

OPERATING REVENUES-C ITY AND COUNTY OF HONOLULUSelected Years— All Funds^

TABLE 22

Fiscal Years CalendarSource of Revenues 1966 1967 1966 1963 1957Taxes

Real Property h $55,502,717 $52,393,987 $50,355,931 $26,426,205 $12,615,730General Excisec - - — 10,806,174 7,000,000Liquid Fuel 5,485,956 5,232,296 4,903,437 4,195,162 3,164,074Utility Franchise 1,411,318 1,316,893 1,228,915 1,023,104 621,493Motor Vehicle Weight 7,191,932 6,905,793 4,583,179 3,927,542 2,921,115

Sub-Total Taxes $69,591,923 $65,848,969 $61,071,462 $46,378,187 $26,322,412Liquor Licenses & Fees $ 487,214 $ 417,099 $ 398,190 $ 352,641 $ 288,272Parking Meter Fees 1,068,544 849,414 765,577 720,009 357,159Other Licenses & Permits 2,152,027 1,392,482 1,395,915 1,014,667 773,979Fines, Forfeits & Penalties 17,204 19,312 71,232 1,033,383 715,813Departmental Earnings® 4,759,793 4,828,424 3,588,536 3,703,313 1,710,685State Grants

Indigent — — — - - 760,194Pensioners 321,327 332,457 331,070 275,901 170,614Salary Adjustment 46,481 658 1,688,550 1,263,169 422,174Act 155C 2,566,775 2,067,373 1,489,465 - - —Others 727,713 1,162,116 1,848,946 355,793 151,061

Sub-Total State Grants $ 3,662,296 $ 3,562,806 $ 5,358,031 $ 1,894,863 $ 1,504,043Other Grants

Federal $ 5,126,752 S 6,525,972 $ 3,802,806 $ 4,241,650 $ 1,063,989Hawaii Housing Authority 151,394 152,001 105,494 107,221 77,137

Land Sales 557,900 697,100 485,882 3,744,579 151,915Miscellaneous 831,036 731,995 699,843 594,857 176,501Total $88,426,063 $65,025,574 $77,742,968 $63,785,370 $33,141,905

Excludes Bond, Improvement District, Trust, Revolving and Act 97 Clearance funds, and Hater Supply Revenues.Includes Urban Redevelopment levy.Act 155, SLH 1965, replaced general excise tax sharing with state-aid grants based on each county's "relative fiscal capacity and relative fiscal need” as defined by the legislature. Includes rental and interest incomes, garbage collection fees and others.

IRCE: Finance Director's Annual Financial Reports (Controller to 1960), City and County ofHonolulu, State of Hawaii.

TABLE 23

OPERATING REVENUES-COUNTY OF MAUISelected Years — All F und s '

Source of RevenuesFiscal Years Calendar Years

1968 1967 1965 1962 1957Taxes

Real Property General Excise^ Liquid Fuel Utility Franchise Motor Vehicle Weight

52,,418,413

709,906 57,827

514,105

$2,,823,765

679,02555,553

531,086

$2,276,5691,509,841

634,67451,527

484,197

51,2,,498,186,875,392566,63443,749

423,105

51,201,0331,987,620

498,71028,972

375,321Sub-Total Taxes $3,,700,251 $4,.089,429 $4,956,808 55,,407,066 54,091,656Liquor Licenses 6 Fees O ther Licenses & Permits Pines, Forfeits & Penalties Departmental Earningsc State Grants

S 79,333135,466

212410,031

$ 76,166126,870

165385,385

$ 63,947 125,711 13,179

1,757,191

S

1 .

53,025100,89322,774

,346.473

5 45,154 76,582 17,417

638,865

Indigent TB Hospitals Pensioners Salary Adjustment A ct 155^Others

177,4953,400

2,797,345291,796

Sub-Total State Grants

2,623,604262,757

697,893178,75132,056

1,216,709737,677

683.310 174,565 106,853

335.311

94,976579,55392,24582,272

35,601

Other Grants Federal

Miscellaneous

$3,270,036 $3,068,432 $2,863,086 $1,300,039 $ 884,647

47,52566,074

$ —38,586

1,52569,937

17030,348 8,549

$7,708,928 $7,785,033 $9,851,384 $8,260,788 $5,762,870NOTE: July-June fiscal years begun July 1, 1966 after a six-month transition period,a. Excludes Loan, Bond, Revolving and certain Trust Funds, Water Supply Revenues, and for

b.1967 and 1968, revenues of functions transferred to the State by Act 97, SLH 1965.Act 155, SLH 1965, replaced general excise tax sharing with state-aid grants based on each county's "relative fiscal capacity and relative fiscal need" as defined by the legislature.

c. Includes rentals, interest, garbage collection charges and other earnings.

SOURCE: Auditor's Annual Reports, County of Maui, State of Hawaii.

30

OPERATING REVENUES-COUNTY OF HAWAIISelected Years — All Funds^

TABLE 24

Source of RevenuesFiscal Years Calendar Years

Real Property General Excise^ Liquid Fuelc Utility Franchise Motor Vehicle Weight

$ 3,706.156

596,699149,077726,492

S 3,858,010

547,012136,737690,832

2,895,3821,970,055

516,845118,090640,730

1,941,9593,913,761

446,81499,891

571,682

$1,211,0812,736,827

250,70071,803

524,050Sub-Total Taxes $ 6,141,102 $ 6,974,107 $4,794,461Liquor Licenses & Fees Parking Meter Fees Other Licenses and Permits Fines, Forfeits and Penalties Departmental Earningsd State Grants

Indigent TB Hospitals Pensioners Salary Adjustment Redevelopment Capital Improvements Act 155t>Others

97,65845,878

206,6327,500

785,407

(e)3,758,696

579,178

91,42044,254

175,010575

530,785

165,8901,149

551,799,637,977

69,178

74,70943,353

162,16931,632

2,666,785

948,869169,45043,103

2,042,0001,698,181

188,280

65,13137,989

136,15850,067

2,189,226

703,331172,838139,503

1,568376,303

259,363

$ 59,21640,363

117,971 32,603

1,376,729

118,683571,877107,28869,272

Sub-Total Grants $ 4,337,874 $ 4,425,993 $ 5,089,883Other Grants

FederalHawaii Housing Authority

Land Sales Miscellaneous

205,328(e)(e)671,282

451,80211,439

508,629111,577

S 1,227,476 9,863

977,254 60,474

1,3454,557 4,597

59,051Total $11,536,183 $11,584,075 $16,484,700 $11,184,219NOTE: July-June fiscal years begun July 1, 1966 after a six-month transition period. 1968 data

preliminary.a. Excludes Loan, Bond, Revolving and certain Trust Funds, Hilo Hospital Special Fund (1967 and

Water Supply Revenues.b. Act 155, SLH 1965, repealed general excise tax sharing and authorized state-aid grants based

county's "relative fiscal capacity and relative fiscal need" as defined by the legislature.c. Excludes amounts withheld by State for highways.d. Includes rentals, interest, garbage collection charges, etc.e. Breakdown not available.SOURCE: Auditor's Annual Reports, 1957, 1962, 1965, 1967 and "Combined Statement of Operations,'

County of Hawaii, State of Hawaii.

1968) and

on each

TABLE 25OPERATING REVENUES-COUNTY OF KAUAI

Selected Years — All Funds'

Fiscal Years Calendar YearsSounce of Revenues 1968 1967 1965 1962 1957Taxes

Real Property $1,734,493 $1,875,308 $1,304,360 SI,.008,331 S 741,730General Excise^ — — 1,007,227 2,,231,744 1,,358,075Liquid Fuel 366,091 343,555 334,502 334,525 245,234Utility Franchise 58,210 46,565 41,552 34,833 24,133Motor Vehicle Weight 344,484 343,595 326,062 303,900 289,733

Sub-Total Taxes $2,503,278 $2,609,023 $3,013,703 S3,,913,333 S2,,658,905Liquor Licenses & Fees $ 47,852 S 9,301 $ 37,485 S 31,470 S 25,958Other Licenses and Permits 71,650 69,705 60,358 46,198 48,132Fines, Forfeits and Penalties 100 150 4,458 5,975 5,500Departmental Earningsc 238,968 218,651 213,497 85,507 48,478State Grants

Indigent — — — — 57,158TB Hospitals — - - 616,897 559,173 395,604Pensioners 69,268 88,548 78,853 89,188 57,265Salary Adjustment 866 169,402 16,029 67,202 43,064Act 155b 2,304,287 2,178,298 1,021,941 —Others 74,878 195,965 223,891 213,449 63,426

Sub-Total State Grants $2,449,299 $2,632,213 $1,957,611 $ 929,012 s 616,517Other Grants

Federal $ 32,001 $ 32,158 S 15,590 s 1,557 s 57,264Miscellaneous 126,944 55,561 30,272 11,775 28,290Total $5,470,092 $5,626,762 $5,332,974 $5,,024,827 S3 ,489,044

a. Excludes Loan, Bond, Revolving and certain Trust Funds, Water Supply Revenues, andrevenues of functions transferred to the State by Act 97, SLH 1965.

b. Act 155, SLH 1965, replaced general excise tax sharing with state-aid grants based"relative fiscal capacity and relative fiscal need" as defined by the legislature.

c. Includes rentals, interest, garbage collection charges, and other earnings.

SOURCE: County Auditor's Annual Reports, County of Kauai, State of Hawaii.

for 1967 and 1968,

on each county's

31

TABLE 26TAXES LEVIED IN HAWAII

As at January 1, 1969

K IN D OF TAX, LEGAL REFERENCE, B R IE F DESCR IPT IO N AND REVEN U E D ISTR IBU T IO N * REPORTS DUE % OF TOTAL COLLECTION^

G E N E R A L E X C IS E (G ro ss In com e ) T A X (C hap te r 117) - on gross income, gross receipts, or gross proceeds of all business activities at following rates: 1/2 of 1% on wholesaling, intermediaryservice, manufacturing, producing, canning, and blind persons; 2% on insurance solicitors; 4% on retail sales of goods, services, and other activities.c Annual license fee of $2.50 or $3.00 is required. Distribution; 0.505% of tax base of activities subject to rate of 3-1/2% and higher to counties' general funds; balance of collections to State general fund.U S E TAX (C hap te r 119) - On tangible personal property imported or purchased from an unlicensedseller. Rates are 1/2 of 1% on goods imported for resale at retail; 4% on all other imports. Distribution; 0.505% of base to counties' general funds; balance to State general fund.P E R S O N A L IN C O M E T A X (C hap te r 121) - on net incomes of individuals. Rates are: first $500,2.25%; next $500, 3.25%; next $500, 4.5%; next $500, 5%; next $1,000, 6.5%; next $2,000, 7.5%; next $5,000, 8.5%; next $4,000, 9.5%; next $6,000, 10%; next $10,000, 10.5%; and over $30,000, 11%. Capital gains taxed at maximum 4%. Deductions generally follow federal law; including among others, local taxes (federal taxes are not deductible), contributions, interest paid, medical expenses, union and professional dues. Exemptions are: individuals, $600 per personalexemption (double exemption for those over 65); blind persons, $5,000; estates, $400; simple trusts, $200; and complex trusts, $80. Military pay of residents is taxable. Joint returns with split income permitted. Taxes withheld by employers; other taxpayers must file estimated income returns and pay estimated taxes quarterly.Income tax credits are granted based on "modified adjusted gross income" and "qualified exemption" and graduated inversely from $20 for incomes under $1,000 to $1.00 for incomes of $5,000- $6,999. No credits granted for income above $6,999. Inversely graduated tax credits are also granted for school attendance ranging from $20 to $2 per dependent child in grades K-12, and ranging from $50 to $5 per exemption for each personal exemption attending an institution of higher education. Distribution; State general fund.C O R P O R A T E IN C O M E TAX (Chapter 121) - On net income of corporations up to $25,000 at 5.85%, and6.435% over $25,000. Capital gains rate is 3.08%. Deductions include bad debts, depreciation, business expenses, interest on loans, losses from operations, and local taxes (federal income taxes are not deductible). Distribution; State general fund.IN H E R IT A N C E A N D E S T A T E T A X E S (C hap te r 122) - on shares of net estate having situs in Hawaii. Bequests to (a) spouse, exemption $20,000, rates graduated from 2% on first $15,000 to 6% over $250,000; (b) parent, child, grandchild or adopted child, exemption $5,000, rates graduated from 1-1/2% on first $15,000 to 7-1/2% over $250,000; (c) all others, exemption $500, rates graduated from 3-1/2% on first $4,500 to 9% over $100,000. Estate tax incorporating the 80% credit allowed by the federal estate tax is imposed. Distribution; State general fund.

- On dealers at per gallon rates: gasoline (includes 5^ state tax) Oahu8-1/24:; Maui 104; Hawaii 114; Kauai 94. Diesel and butane at 14, except highway use which is taxed at gasoline rate. Aviation fuel at 14. Distribution; Aviation tax to State airport fund; small boat fuel to state general fund; county fuel to county highway funds; balance to State highway fund.

Returns due and tax payable on or before the last day of the following month. Annual summary and reconciliation return must be filed by April 20 of the following year. Returns due and tax payable on or before last day of the following month.Returns due 20th day of fourth month after close of income year, withholding returns due on or before last day of following month. Estimates of income on 20th of April,June, September and January.

Due 20th day of 4th month after end of income year. Income estimates due 20th of September and January.Executor or administrator to decedent's estate to file a return. Payment due within 18 months after death.

Returns due on or before the end of the following

33.96

21.54

L IQ U O R TAX (C hap te r 124) _ on dealers at 20% of wholesale price. Annual permit required; fee $ 2 . 5 0 . Distribution; State general fund.T O B A C C O T A X (C hap te r 125) _ on wholesalers at 4Q% of wholesale price of all tobacco products. Annual license fee required; fee $ 2 .5 0 . Distribution; State general fund.P U B L IC S E R V IC E C O M P A N IE S TAX (C hap te r 1 2 6 ) - on public utility gross income at graduated rates based on ratio of net to gross income. Minimum rate, 5 .8 8 5 % ; maximxim, 8 .2% except that land carriers are taxed at 5 .3 5 % . Utilities are exempt from general excise and property taxes. Airlines, motor carriers, common carriers by water, and contract carriers taxed at 4% of gross income. (No exemption for property tax.) Distribution; State general fund.B A N K S A N D O TH ER F IN A N C IA L IN S T IT U T IO N S TAX (Chapter 1 2 7 )- on net incomes, as defined, at 11 .7% on banks, building and loan associations, industrial loan companies and other financial corporations. Federal income taxes upon income from sources in the State are deductible. Distribution: State general fund.P R O P E R T Y TAX (C h ap te r 1 28 )_ on real property, land and improvements. Assessments are about 70% of "fair market value." A maximum $ 5 ,5 0 0 home exemption is granted; additional exemption granted to persons over age 60 based on adjusted gross income and personal exemptions. Higher rate levied on land than on buildings for property classed residential, hotel-resort, industrial, and commercial; single rate levied on property classed agricultural or conservation. Average 1968 rates per $ 1 ,0 0 0 of net assessed valuation are: Oahu $ 1 9 .2 1 ; Kauai $ 1 6 .5 0 ; Hawaii$ 1 7 .8 9 ; and Maui $ 1 5 .0 0 . Personal property is not taxed. Distribution; Respective county general funds, and Redevelopment Agencies (Hawaii and Oahu).C O N V E Y A N C E T A X (Chapter 12B-A) - on actual and full consideration paid for the transfer of realty, including leases and subleases, a tax of 54 per $100 is imposed. Minimum tax on each transaction is $ 1 .0 0 . Certain exemptions allowed. Distribution: State general fund.M O T O R V E H IC L E W E IG H T T A X (C hap te r 130) - on weight as follows: commercial vehicle, 1 -1 / 2 4 perpound; passenger vehicle, 3/44 per pound. Minimum annual tax $ 1 2 .0 0 on motor vehicles, minimum $ 1 .0 0 on other vehicles. Tax prorated over the year. Distribution; County highway funds.P U B L IC U T IL IT Y F R A N C H IS E TAX (C hap te r 1 3 1 ) - on gross operating inc(xne of certain public utilities (electric and gas companies) at 2 -1 / 2 % rate. Distribution; County highway funds.IN S U R A N C E P R E M IU M S T A X (C hap te r 181)- m lieu of general excise and net income taxes, on gross premiums as follows: life insurance, 1 .7 5 5 % for domestic and 2 ,9 25 % for foreign firms; surpluslines insurance, 4 .6 8 % ; casualty and other insurance, 2 .6 3 2 5 % for domestic and 3 .8 02 5 % for foreign firms. Cash surrender values not deductible. Ocean marine insurance 0 .8 77 5 % of 1% of gross underwriting profits. Distribution: State general fund.L IC E N S E S , F E E S A N D P E R M IT S - Various business, occupation, and nonbusiness licenses, fees and permits are imposed by either the State or county governments. Distribution; State and counties' general and special funds, depending on levy.

Returns due on or before last day of following month.

Returns due on or before last day of following month.Returns due on or before April 20.

Due April 20th, or 20th of 4th month after fiscal year ends. Other installments due 20th of 2nd, 5th, and 8th months.Returns filed, if required, on or before Dec. 31. Assessment notices to taxpayers by March 5. Appeals not later than March 31.Net assessable set on or before April 20. Tax rates set on or before June 15.Not later than 90 days after the taxable transaction.Due on or before April 1.

Returns due one month after end of calendar year.Returns filed on or before March 15 with the Insurance Commissioner.

1.93

1.52

3.23

19,51

0.08

2.69

0.51

1.58

a. Legal reference is to Revised Laws of Hawaii, 1955, as amended.b. Based on fiscal 1968 state and county tax collections (see table 7) excluding unemployment compensation.c. The 4% tax on retail sales of goods and certain services is deductible as "sales tax" in computing state and federal Income taxes.d. Rates shown are for Honolulu. Rates for Maui, Hawaii and Kauai counties are 14 (commercial) and 1/24 (passenger) and a $6.00 minimum. SOURCE: Compiled from the Revised Laws of Hawaii, 1955, as amended; and financial reports of the State and counties.

TABLE 27

FEDERAL BUDGET RECEIPTS, EXPENDITURES, AND PUBLIC D EB PFiscal Years 1958, 1963, 1968

1958 1963 1968 (Est.)^’

Amount» of Total Amount

% of Total Amount

% of Total

BUDGET RECEIPTSIndividual Income Taxes $ 34,724 43.7 $ 47,588 44.6 $ 67,700 43.5Corporate Income Taxes 20,074 25.3 21,579 20.2 31,300 20.0Employment Taxes 8,624 10.8 14,746 13.7 29,730 19.1Excise Taxes 10,638 13.3 13,194 12.4 13,848 8.9Estate and Gift 1,393 1.7 2,167 2.3 3,100 2.0Customs 781 1.0 1,206 1.1 2,000 1.3All Other Receipts 3,383 4.2 6,098 5.7 8,152 5.2

TOTAL RECEIPTS $ 79,617 100.0 $106,578 100.0 $155,830 100.0BUDGET EXPENDITURES S NET LENDING

National Defense $ 44,462 53.8 $ 52,211 46.9 $ 76,489 43.5Internatl. Affairs & Finance 3,345 4.0 4,184 3.8 5,046 2.9Interest 6,936 8.4 9,215 8.3 13,535 7.7General Government 998 1.2 1,788 1.6 2,678 1.5Domestic Civilian

Space Research & Technology 89 0.1 2,552 2.3 4,804 2.7Agriculture & Agricultural Research 3,013 3.5 5,129 4.6 5,311 3.0Natural Resources 1,206 1.5 1,625 1.5 2,432 1.4Commerce & Transportation 2,978 3.5 5,661 5.1 7,853 4.5Housing & Community Development 129 0.2 - 819 - 0.6 3,955 2.3Health, Labor & Welfare 15,763 19.1 25,678 22.7 46,417 26.4Education 540 0.7 1,241 1.1 4,541 2.6Veterans' Benefits & Services 5,337 6.5 5,520 5.0 7,168 4.1Sub-Total Domestic Civilian ( 29,055) ( 35.1) ( 46,287) ( 41.7) ( 82,481) ( 47.0)Less: Undistributed Adjustments - 2,076 - 2.5 - 2,666 - 2.3 - 4,591 - 2.6

TOTAL EXPENDITURES & NET LENDING $ 82,720 100.0 $111,320 100.0 $175,635 100.0Deficit (-) or Surplus (+) -$ 3,103 — -$ 4,742 — -$ 19,805 —PUBLIC DEBT AT JUNE 30 $276,444 — $306,466 — $348,147 —NOTE: Dollar amounts in millions. Detail may not add to totals due to rounding.a. Reported on New Budget Concept basis, including programs financed through trust funds and other means.b. As set forth in January 1968 Budget Document: latest revisions put Fiscal 1968 Receipts at S153.5 billion and total

Expenditures at $178.9 billion, but detailed breakdowns are not yet available.SOURCE: Tax Foundation, Inc., Washington, D. C.

FEDERAL TAX COLLECTIONS IN HAWAIISelected Fiscal Years

(In Thousands)

TABLE 28

Source T 9 6 r THT~ 1963 1958Indiv. Income & Em ploymenta Corp. Income & Excess Profits AdmissionsManufacturer’s ExciseRetailer's ExciseAlcohol<5CommunicationsTransportation of Persons©EstateGiftTobacco^Unemployment Insurance All Others^

$366,171 $265,903 $240,711 $213,348 $122,83853,611 59,019 63,323 39,544 33,764(b) 17 942 834 1,004(b) 421 367 229 195(b) (c) 409 1,624 1,0695,047 4,327 3,548 1,825 1,384(b) 2,512 2,748 2,612 1,455(b) 1,594 627 1,106 1,2785,631 6,205 5,672 5,823 1,6071.203 411 2,639 495 404

8 8 11 15 141,664 1,625 1,536 2,531 7286,902b 800 1,081 1,167 566

Total $440,237 $342,842 $323,614 $271,153___$166,306a. Includes withholding, FICA, Individual Income and Railroad Retirement.b. Breakdown not available but total included in "All Others" and "Total."c. Less than $500.d. Includes receipts from customs.e. Includes tax on transportation of property prior to 1961.£. Includes stamp taxes, club dues, initiation fees, etc.SOURCE; Annual Report, Commissioner of Internal Revenue, U. S. Treasury; and

Revenue News Release No. IR-954, December 27, 1968.

TABLE 29

FEDERAL GRANTS TO HAWAIISelected Fiscal Years

Purpose 1968 1967 1966 1963 1958Highways $ 23,879,125 $ 23,367,333 $18,013,841 $ 6,625,049 $ 3,512,870Airports 363,600 146,739 388,688 1,230,551 29,439National Guard 12,501,533 12,793,866 12,438,746 16,437,251 4,734,949Health & HospitalHospital Construction 863,096 985,875 722,914 1,861,063 487,889Public Health 2,205,660 1,949,190 1,651,950 818,677 558,335Hansen’s Disease 1,185,572 1,167,766 845,953 1,183,828 1,241,143

EducationElem.-Secondary Act 2,721,022 4,025,158 2,801,500 - - ___

Other Education 30,127,326 27,177,665 16,737,196 11,901,951 2,803,948School Construction 1,629,114 1,678,014 268,233 1,334,600 1,686,419Public WelfareDependent Children 6,014,627 4,925,413 4,413,162 3,848,307 2,542,258Aged 6 Others 7,114,785 6,585,577 3,939,984 2,325,660 1,275,934

Veterans' Assistance — - - - - 783,408Natural Resources 1,788,919 1,498,807 1,334,965 1,078,341 820,253Employment Security 2,510,585 2,317,339 2,158,601 1,455,255 1,099,404Unemp. Comp. Benefits 1,652,675 1,346,948 1,227,547 1,347,567 —Disaster Relief - - - - — 159,174 —

East-West Center 5,363,292 6,309,406 5,255.843 7,229,005 —

Peace Corps 437,010 2,597,373 1,566,278 — —

Econ. Opportunity Act 2,657,264 3,148,535 2,449,482 — —

Miscellaneous 1,541,908 1,177,201 659,177 719,310 353,838Total__________________ $104,557,113 $103,198,205 $76,874,080 $59,555,589 $21,930,087SOURCE: Annual Reports of the Comptroller; Department of Accounting and General

Services, State of Hawaii.

35

T A X C O L L E C T IO N S IN H A W A II Total, Federal, and State-Counties Taxes

(In M illions of Dollars)

CHART 7

$«00-1958 1968

$700—

$600-

$500—

$400—

$300—

$200—

$100—

$800

— $700

— $600

— $500

— $400

-$300

-$200

-$100

NOTE: Unemployment Compensation tax excluded. 1967 and 1968 State-County data adjusted for an estimated $29.5 million in real property tax collections due in fiscal 1967 but collected in fiscal 1968.

SO U RCE: Compiled by the Tax Foundation of Hawaii from reports of the City and County of Honolulu Finance Department, County Auditors, and State Department of Taxation, State of Hawaii; and Internal Revenue Service, U.S. Treasury Department.

36

HAWAII STATE GENERAL FUND FINANCESFiscal Years Ending June 30

(In Thousands)’

TABLE 30

Fiscal Year Receipts

Excess or Expenditures Deficiency

Cash Unexpended UnappropriatedBalance Appropriations Surplus

1968 $339,836 $331,155 $ 8,681 $56,770 $31,341 $25,4291967 310,270 297,314 12,956 48,089 28,123 19,9661966 258,327 243,926 14,401 35,133 22,283 12,8501965 182,296 177,439 4,857 20,732 11,314 9,4181964 176,198 175,779 419 15,875 9,617 6,2581963 168,519 182,713 - 14,194 15,456 16,001 - 5451962 163,501 167,220 - 3,719 29,650 21,516 8,1341961 154,012 149,737 4,275 33,369 20,864 12,5051960 121,418 110,954 10,464 29,094 31,731 - 2,6371959 99,gr> 83,664 15,423 18,630 7,276 11,3541958 82,757 75,627 7,130 3,207 4,923 - 1,716

a. Includes federal funds earmarked for specific purposes. 1961 and subsequent data include certain revenues and expenditures formerly under special funds, such as federal funds for Hawaii National Guard, or in funds not covered in the treasury.

SOURCE: Department of Accounting 6 General Services, State of Hawaii.

Millions of Dollars

CHART 8

G E N E R A L F U N D F IN A N C IA L P O S IT IO N State of Hawaii — Cash and Unappropriated Surpluses and Deficits

As at June 30 — Selected Years (Millions of Dollars)Millions

of Dollars

SOURCE: Table 30

37

HOW GOVERNM ENT SPEN D S ITS MONEY

HAWAII STATE AND COUNTIESOperating expenditures of the State and counties exceeded $523

million in fiscal 1968 (pages 41-43). Nearly 80% ($416.5 million) of this total was spent by the State government. Public education outlays were the single most expensive item for the State while the costs of public safety led in the counties. Fiscal 1968 total expenditures have risen by $39 million (8%) over the 1967 figure.

Although Hawaii ranks as the 4th highest state in the nation in total per capita direct general expenditures ($667 as compared with the national average of $474), it is not among the top 10 states in the usually high per capita spending areas of public education, welfare and highways (page 39), The 50th State's top rankings in comparison with the other states were in general government (3rd highest at $30 per capita), police and fire protection (6th at $33), interest paid on debt (7th at $21), and higher education (7th at $74).

Public employees in Hawaii earn more on the average than those in all but seven other states (page 46). The amount for full-time equivalent employees in Hawaii is $604 per month as compared with the U. S. average of $561. The highest average wage goes to higher education employees ($759). Coupled with the higher than average salaries, the number of public employees per 10,000 population stands at 429 - well above the national average of 386 with a ranking of 12th highest in the nation. This explains to some degree one of the reasons for the ever-increasing costs of government operation.STATE OF HAWAII

Education costs, a responsibility of the State government since 1966, were the largest single expense of the State in 2968 (page 41). Spending for public education, libraries and University of Hawaii reached $172 million or 41% of the total State expenditures for the year. Highway costs dropped to $36 million - a decrease of 13% from 1967. Combined health and welfare expenditures were nearly $57 million (13.7%) .

School enrollment in Hawaii has increased by 24% since 2958 (page 52). Total enrollment reached 228,997 in the fall of 1968. Public schools account for 76% of the total; private schools 14%; and the University of Hawaii and the Community College System made up the remaining 10%. Public school teachers in Hawaii receive an average salary of $8,100 per year and teach classes with an average teacher-pupil ratio of one teacher per 24 pupils,THE COUNTIES

County expenditures were $206.7 million for fiscal 2968 (pages 42-43). Police, fire and other public safety costs represented 27% ($28.6 million) of the total (page 44). Debt service (principal and interest payments) on county bonds ran)ced next at 16% ($17 million). General government and staff agencies made up another 12% ($13 million), Act 97, SLH 1965, transferred the responsibility for hospitals and the maintenance and construction of schools from the counties to the State. This has resulted in a significant shift in the expenditure patterns of the counties, particularly in the last two years.

Honolulu City and County expenditures totalled $82 million - 77% of the total for all four county governments. Public safety costs of $21.5 million (26%) were the largest item followed by debt service of $14.7 million or 18%. General government and health and sanitation accounted for 10% and 9% respectively.

Maui County's expenditures were close to $8 million. As with the other counties public safety was the primary object of expenditures ($2 million - 27%) with highways next at over $1 million (18%). General government was 3rd (16%), and pension and retirement expenditures 4th (12%) .

Hawaii County also expended its largest sum on public safety ($2 million) - this was 28% of the total expenditures of $22 million. Government control and staff agencies were next with $2.9 million (26.5%). Pension and retirement, debt costs and highways followed with each costing approximately $1 million, and the combination of the three makes up 32% of the total expenditures.

Kauai County costs were more than $5.6 million. Public safety took 33%, highways 22%, general government 15%, and pension and retirement 11%.

38

PER CAPITA DIRECT GENERAL EXPENDITURESState and Local Governments — Fiscal 1967^

TABLE 31

RankPublic Higher

Total Educ. Educ. Hwys.HealthWelfare^

Police General Int. on Fire Control‘S Debt Other*^

$ 667 $169 $ 74 $ 77 $ 93 $33 $30 $21 $170U.S. AV. 474 149 45 71 88 67Ala.AlaskaAriz.Ark.Calif.Colo.Conn.Del.Fla.Ga. Idaho 111. Ind. Iowa Kans. Ky.La.Me.Md.Mass.Mich.Minn.Miss.Mo.Mont.Neb.Nev.N. H. N. J. N. M. N. Y. N. C. N. D. Ohio Okla. Ore. Pa.R. I.S. C.S, D.Tenn.TexasUtahVt.Va. Wash. W. Va. Wise. Wyo.D. C.

3601,198

523339651539472 607 435 375 453 418 412 477 440410 485 414473 466 510 547 346 404 509 439 700 406 417 560 615 343 584 393 466 538411 495 305 493 386 385 517 526 380 557 401 520 749 593

117253158 101185 163 153172 128 123 132134159153 145 110 138130 161 132 171 18395

128145131 169 125 142 191186119 167 130 128173154135 115 159 110132 186 121133 162120 145 211 144

4169 813657 87 24 64 3432 5237 6058 52 50 47 3737 21 715938 41 565051 49 19 8737 41703960 73 2138 28 613940 92 7033 7341 76

1093

644381016870 75 69

1347358 9054 60

10880868790575159 96 69 61

13796

1508357 955855

1246871 92 62 87 49

1297472 86

16080

10110266

21964

65766273

13798 82 73 80 78 69 86 596970 72

1006291

1059599 72 82 61 65

1025570 80

13955 6271

118676794485675 58 6276 52 86 63 98 86

160

1324241034222715 22 13 18 2616 1615 1319 1828 342416 11 211516 4820 3017 3913 1018 15 22 18 28 11 12151614 13 16 20 1025 18 61

104919 10 25 22 182019 13 18 15 12 17 15 11 13171820 1715 9

122016 3815 17 22 22 1116 1313 2314 229

17 11 12 14 21 1318 13 18 23 25

1228

98

181024331512

414

8 7

1118191021191516 11 10 11

92212161027

71112141218165 4

1314

9101215 11 12 10 11

382606834

1256474 96 6347 7152 37505351 6149 61 8259 6242486556

121486757

10741

12343 4675 56 7540 555041 53 5542 82 4060 73

125a. Includes capital outlay. Detail may not add to total due to rounding.b. Includes vendor payments under welfare programs, institutional care of the

needy, administration of welfare activities; and health, hospitals, sewerage and other sanitation expenditures.

c. Includes financial administration.d. Includes housing and urban renewal, water transport and terminals, air trans

portation, parks and recreation, correction, unemployment compensation, and all other unallocable.

SOURCE: Governmental Finances in 1966-67, Series GF67-NO. 3, U. S. Department ofCommerce, Washington, D. C., November, 1968.

39

HOW STATE GO VERNMENT DOLLARS ARE SPENT Operating Expenditures — By Functions

State of Hawaii — Fiscal Year 1966

CHART 9

STATE GENERAL FUND STATE GENERAL AND SPEC IA L FUNDS

P U B L IC SAFETY $20,281,824

6.13%

N ATU RAL R E SO U R C E S $12,117,430— 3.66%

NATU RAL r e s o u r c e s ! R ET IR EM EN T AND $13,963,018— 3.35% \

P E N S IO N S $18,886,717 \ 5.71% \

P EN S IO N & R E T IR EM EN T $18,886,717— 4.54%

U N EM P LO YM EN T C O M PENSAT IO N $13,760,670— 3.30%

a. Includes general funds for highways, utilities, recreation, unemployment compensation, county grants-in-aid. and others.

b. Debt costs for highway revenue bonds included in highways, and for harbor, airport and other bonds reimbursable from special funds Included in all others.

c. Includes harbors, airports, homesteading, land development, public housing, recreation, county grants-in-aid, and other m iscellaneous expenditures.SO U RCE: Department of Accounting and General Services, State

of Hawaii; See also TabFe 32.

DEBT P R IN C IP A L AND IN T ER EST

$21,397,317— 5.14%

STA TE G O V E R N M E N T O PERA T IN G E X P E N D IT U R E SState of Hawaii — Selected Fiscal Years®

TA B LE 32

Functions 1968 1967 1966 1963 1958General Government - Control $ 6,734,529 $ 6,437,910 $ 5,543,429 $ 4,338,729 $ 1,562,068

- Staff 16,583,843 11,997,686 9,858,882 9,750,806 4,320,645Public Safety - Police & Fire 80,772 77,566 72,549 204,988 148,890“^

- Other Protection 20,272,749 19,953,801 18,578,065 22,279,358 8,522,824 'Highways 36,222,695 41,580,058 23,712,493 15,369,077 9,306,115Natural Resources 13,963,018 13,740,015 11,740,081 10,190,954 3,848,123Health & Sanitation 6,898,657 6,255,830 5,483,921 4,278,057 3,196,049Hospital & Institutions 18,628,288 17,894,703 17,177,652 13,959,884 8,736,66ilPublic Welfare 31,436,433 24,179,724 20,125,031 13,083,202 9,144,121Education - University 63,007,352 52,615,933 38,576,320 28,105,016 6,234,600

- Public Schools 104,684,433 107,854,818 85,381,840 55,196,133 30,762,801]- Libraries & Other® 3,945,427 3,411,648 2,287,497 2,441,612 957,069J

Recreation 2,084,485 772,616 439,107 2,123,905 180,982"Utilities & Other Enterprises 15,627,069 9,738,280 7,621,053 9,248,025 3,834,971Interest® 7,763,717*^ 6,763,045 6,410,707 3,829,297 2,419,918Bond Redemptions® 13,633,600 11,808,600 9,223,600 7,537,000 3,279,000)Retirement & Pension 18,886,717 13,352,148 11,139,022 8,724,232 6,417,8011^Employees' Health & Hosp. Ins. 3,565,773 2,461,389 1,940,705 1,760,008 —Salary Increases & Adjustments — — 2,513,611 1,712,899 —Unemployment Compensation 13,760,670 14,770,172 10,702,824 13,806,756 5,077,204k"Miscellaneous 7,245,857 6,772,416 5,696,282 6,038,763 2,797,939k'Grants-in-Aid to Counties 11,427,103 10,507,252 9,363,114 — —Operating Expenditures $416,453,187 $382,945,610 $303,587,785 $233,978,701 $110,747,786a. General and special fund expenditures including cash expenditures for capital improvements. Inter

fund transfers have been eliminated to avoid duplication.Includes amounts for other educational activities, such as, commissions, compacts and education studies; $193,825 (1968), $109,189 (1967) and $133,657 (1966).Debt service charges reimburseable from highway funds included under highways; from airport funds,under utilities; from Sand Island receipts. Land Revolving fund and Veterans' Loan Fund, under Miscellaneous.

SOURCE; Annual Reports of the Comptroller, Department of Accounting & General Services, State of Hawaii.

b.

c.

OPERATING EXPENDITURES-CITY AND COUNTY OF HONOLULU Selected Years— All Funds^

TABLE 33

Fiscal Years CalendarObject of Expenditure 1968 1967 1966 1963 1957General Government

Control S 1,329,908 S 1,182,973 $ 737,412 $ 1,107,068 $ 387,230Staff

Public Safety6,746,223 6,145,182 5,743,386 4,817,689 2,116,813

Police & Fire 17,290,074 15,855,004 14,046,526 9,771,028 5,426,102Other Protection 4,237,765 3,664,951 3,061,590 2,120,387 1,331,251

Highways 6,522,386 6,242,906 6,665,550 5,141,564 5,393,783Health & Sanitation 7,405,439 6,911,081 6,479,370 5,602,704 3,517,666Hospital & Institutions - - - - 63,453 (c)Public Welfare — - - 20,138 953,082 1,599,818Public School 156,817 1,493,863 870,263 5,325,146 3,598,454Recreation 5,908,369 5,341,163 4,698,227 3,019,550 2,068,110Interest 5,175,686 5,082,656 4,893,993 4,412,572 1,473,007Bond Redemption 9,572,210 8,774,209 8,543,209 5,761,010 2,059,154Pension & Retirementb 4,515,856 3,913,777 4,040,999 3,095,006 1,737,629Miscellaneous 1,544,253 1,374,945 867,383 273,091 139,053Cash Capital Improvement 11,753,622 9,933,583 11,094,647 2,410,051 —Total $82,158,608 $75,916,293 $71,762,693 $53,873,401 $30,648,070NOTE: Certain functions transferred to the State after 1965, including school mainte-

nance, hospitals and public welfare.a. Includes all funds expended by county, including state-aid grants to county. Inter

fund transfers have been eliminated to avoid duplication. Data exclude certain bond and revolving fund expenditures, loan payments and urban redevelopment real estate purchases.

b. Amounts not allocated by function.c. General hospital amount not shown in reports.SOURCE: Finance Director's Annual Financial Reports (Controller to 1960), City and

County of Honolulu, State of Hawaii.

T A B L E 34

OPERATING E X P E N D IT U R ES-C O U N T Y OF MAUISelected Years — All Funds®

Fiscal Years Calendar YearsObject of Expenditure 1968 1967 1965 1962 1957General Government

Control $ 163,279 $ 193,716 S 190,979 $ 169,551 $ 106,894Staff 1,,069,400 900,747 764,649 689,559 398,142

Public SafetyPolice & Fire 1,,962,263 1,810,581 1,,511,791 1,250,939 802,755Other Protection 192,280 188,088 169,886 157,773 88,133

Highways 1,,393,390 1,356,976 1,,152,445 998,342 922,197Health & Sanitation 354,881 341,875 294,998 241,582 160,283Hospital & Institutions 175,172 200,306 2,,789,456 2,272,696 1,458,408Public Welfare 34,957 25,238 20,889 32,929 129,802Public Schools 15,547 — 416,293 609,124 440,680Recreation 751,535 663,322 494,598 342,838 193,512Utilities — — ___ 111,330Interest 186,010 196,775 265,750 230,691 161,393Bond Redemption 369,000 254,000 514,404 364,804 257,828Pension & Retirement 979,705 863,174 823,284 706,711 452,352Pay Adjustment — — — — 64,411Miscellaneous 253,316 347,248 115,783 169,435 33,789Total $7,,900,735 $7,342,046 S9,,525,205 $8,236,974 $5,781,909NOTE: July-June fiscal years begun July 1, 1966 after a six-month transition period.

Certain county functions (including schools) transferred to the state after 1965.

a. All funds expended by county with the exception of certain revolving and bondfund expenditures, loan repayments and Act 97, SLH 1965 expenditures. Interfund transfers eliminated to avoid duplication.

SOURCE: Annual Reports of the Auditor, County of Maui, State of Hawaii.

42

OPERATING EXPENDITURES-COUNTY OF HAWAIISelected Years— All Funds=

TABLE 35

Object of ExpenditureFiscal Years

1968 1967Calendar Years

1962 1957General Government

Control Staff

Public Safety Police & Fire Other Protection

HighwaysHealth & SanitationHospital & InstitutionsPublic WelfarePublic SchoolRecreationInterestBond RedemptionPension & RetirementMiscellaneous

139,402 $ 141,279 $ 143,964 $ 176,388 $ 107,7492,788,150 3,321,082 3,116,373 1 ,420,117 549,2772,828,136 2,519,531 1,967,606 1,,715,480 1,073,381277,922 210,577 148,734 165,060 30,0991,111,215 2,267,298 1,471,684 1,,412,875 981,569

225,792 239,481 172,212 120,853 71,459804 19,656 3,032,427 2,,731,346 2,193,370

25,955 20,920 7,447 5,947 146,6121,069 13,871 1,732,869 855,580 724,102

934,930 938,785 621,916 636,607 360,329335,155 550,478 582,245 358,673 117,180838,126 1,180,510 1,025,511 442,211 240,667

1,275,235 1,178,101 1,183,695 890,386 569 ,929250,803 401,280 169,461 206,155 45,079

Total $11,032,694 $13,002,850 $15,376,144 $11,137,678 $7,210,802NOTE: July-June fiscal years begun July 1, 1966 after a six-month transition

period. Certain county functions transferred to the State after 1965, 1968 data preliminary.

a. All funds expended by county with the exception of certain revolving and bond fund expenditures, loan repayments, SLH Act 97 fund and 1968 and 1967 Hilo Hospital special fund. Interfund transfers eliminated to avoid duplication.

SOURCE: "Combined Statement of Operations," County of Hawaii, 1968; Auditor'sAnnual Reports, County of Hawaii, 1957, 1962, 1965 and 1967.

T A B L E 36

OPERATING E X P E N D IT U R ES-C O U N T Y OF KAUAISelected Years — All Funds'

Fiscal Years Calendar YearsObject of Expenditure 1968 1967 1965 1962 1957General Government

Control $ 163,997 $ 169,561 $ 158,744 $ 148,007 $ 91,871Staff 684,112 559,689 416,086 422,233 218,431

Public SafetyPolice & Fire 1,571,988 1,429,181 1.,195,659 1,043,557 663,893Other Protection 258,101 149,666 119,692 172,115 42,355

Highways 1,218,651 1,242,978 837,461 949,015 711,187Health & Sanitation 241,162 132,734 119,006 149,263 89,286Hospital & Institutions — — 630,442 639,196 516,797Public Welfare 48 404 1,836 4,377 116,621Public School — 215 324,321 490,393 264,929Recreation 386,650 346,485 326,171 254,176 151,392Interest 123,179 119,293 128,701 100,611 81,015Bond Redemption 245,027 209,373 213,373 230,373 110,902Pension & Retirement 599,089 518,303 552,393 455,518 219,278Miscellaneous 137,766 207,422 84,035 69,242 70,679Total $5,629,770 $5,085,304 $5,,107,920 $5,128,076 $3,348,636NOTE: July-June fiscal years begun July 1, 1966 after a six-month transition period.

Certain county functions (including schools) transferred to the State after 1965.

a. All funds expended by county with the exception of certain revolving and bondfund expenditures, loan repayments and Act 97, SLH 1965 expenditures. Interfund transfers eliminated to avoid duplication.

SOURCE: Auditor's Annual Reports, County of Kauai, State of Hawaii.

43

O B J E C T S O F C O U N T Y G O V E R N M E N T E X P E N D IT U R E S Percentage Distribution — By Counties

Fiscal 1966

CHART 10

10% 20% 30% 40%

G EN ER A L G O VERN M EN T

PU B L IC SAFETY

HIGHW AYS

HEALTH AND SAN ITAT IO N

RECREAT IO N

DEBT SE R V IC E

P E N S IO N AND R ET IR EM EN T

O THER E X P E N D IT U R E S

City and County of Honolulu

County of Maui

Couniy of Hawaii

County of Kauai

10% 20% 30% 40%

SO URCE; Tables 33-36 inclusive.

PUBLIC EMPLOYMENTState and Local Government Full-Time Equivalent Em ployees

Per 10,000 Population, By Function: October 1967

TABLE 37

statePublic Higher Hlth

Rank Total Educ.® Educ. Hwys Hosp.Police Parks Fire Rec.^

Gen. All Water Con.c other<^

12 429 162 52 26 38 32 25 10 27 58US AV 386 160 32 28 43 29 13 21 55Ala.Alas.Ariz.Ark.Cal.Colo.Conn.Del.Fla.Ga.Ida.111.Ind.IowaKans.Ky.La.Me.Md.Mass.Mich,Minn.Miss.Mo.Mont.Neb.Nev.N. H.N. J.N. M.N. Y.N. C.N. D.OhioOkla.Ore.Pa.R. I. S. C. S. D. Tenn. Texas Utah Vt. Va. Wash. W Va. Wise. Wyo, D. C.

465

19 51 162

44 21 11322741 262314 502038242829253642 1093

374767

438

45 221748 4049153034 133539183133 14

338467409323424 477341408 430 374 384354 388 392425 325409359 392 379 379 392 361 347 433 437 471360 337 446 446342 445 341 404424 337355 335425 379 368 429 368 357 423 378 373 568 471

136174168140169205150 144 172 156 159144 180 174 178 135165 162 171 148164 171 139145174175 169 129151183155156 187 143 158176157 128 153184146166 204 146165 175 161 145 214 162

263454 29 40 65 17 5635 26 39 28 44 43 47 38 35 2535 134638 37295539323313 59 22 31 553047 5214 29 2442 2831 6343 294836 42 582

385738312233 3037 283038 22 2434 443440 51 26 26 223541 2348 35495423 35 22 2855243536 27 27 26 55 34 293150 33 33 48 24 66 19

41 26 2443 39 5033 36 61 64 354244 4244 3242 2345 575046 57 443443 61 3235 396432 263451 31 303547 26 5533 27 2634 29 38 43 7765

222029163224322331 21243225 19 23 19 2923 34 422619 18 29 22 22 45 29 3624 4120 1627242526 39 1817 22 26 2018 22 24 1628 27 57

1023 16 11 19 168

11211324 108

1114 1119 14 107 9

1214 11 23 1720 139

1713 11 218

16 207 9

121915 121417 9

16 1118 288

13 38 2514 2429 1732 23172318 20 212415171618 2117 21 15 2030253318 20 27 27 15 40 20 21 27 21 24 153215 18 22 2316 21 18 2233 19

459150 34 724852 66 55 423853414445 37 553949 6040463440 44 78 58 46 4658 974442 494551 51593546 5943414444 7045 48 58

132NOTE; Because of rounding, detail may not add to total.a. Includes local libraries.b. Includes natural resources.c. Includes finance administration, and other general government control.d. Includes employees in special schools, welfare, sewerage and other sani

tation, correction, public service enterprises other than water, employment security administration, state liquor stores, and all other general government functions.

SOURCE; "Public Employment in 1967," U. S. Department of Commerce, Bureauof the Census, Series GE-67-No. 1, July, 1968.

45

AVERAGE MONTHLY EARNINGS OF PUBLIC EMPLOYEESState and Local Government Full-Time Equivalent Employees^

October 1967; By Functions

state Public Higher Hlth Police Parks Gen. AllState Rank Av. Educ.b Educ, Hwys Hosp. Fire Rec.c Water Con.d other®HAW 8 $604 $551 $759 $ 586 $574 $690 $556 $613 $673 $581

TABLE 38

US AV 561 592 667 496 437 603 505 518 521 551Ala.Alas.Ariz.Ark.Cal.Colo.Conn.Del.Fla.Ga.Ida.1 1 1.Ind.IowaKans.Ky.La.Me.Md.Mass.Mich.Minn.Miss.Mo.Mont.Neb.Nev.N. H.N. J.N. M.N. y.N. C.N. D.OhioOkla.Ore.Pa.R. I.S. C.S. D.Tenn.TexasUtahVt.Va.Wash.W Va.Wise.Wyo.D. C.

47 1

1150

2234

2734483813 212435424439 1617 7

12512825 419

331029 3

30 37 2045 15 19184940463626 22 325

431431

6

436822602405728528625503485435479593538525483458446477579574616595369499520468603494603499634498481 541 443 581 558 561 419 470 443482 516 531497 624 449 591498 620

449754655427760526669627 545 465 483 611 602 554 505 486 468 485 620 599 631 623 383 518 556 479 643 518 688 543 684 525502 581 498 585 614628 436 494 497 494503 539 524 617 470 605 520 610

588 984704 563 808 642 642 373 563 586 586 727 670 720 637 538 547 517 610675705 800 500 629 593 628 726 610 783 553 720 622 613 592535 691 673 615536 651 519 623 625 467589 772 634 850676 606

3861,047

518345711503 541 447 391 386 475 572 415 515 405 418 393 437 523 561 584 567 296 477 567 410528 467504 442 549 470 439505 359 580 464 477 361 428 340 466 512 499 453 632 389 549529 613

334620432282592442535444367339381467407351 381 362 354 456 486 460 485 448 279 385 381 348 459 410 439 358 492 401 369 414 307 474 454 505320 307 332 375407 471408 510321 464352 535

459838548412753520 617521 521 472455 622 511 476 483456450 472 623 634 698 611 396 547 471495 641 498 601496 714496 440 607 445 593 545 552 476 434497 515 530 526 530 630451 589 467 857

443803602395667517543438402407473561404477475404430533558532578529406545472 493 608 552 488 511473488 502 471 415 578 593 454 441489 321 390 505 556 493 607 417 464 471 637

386972522413715532632427 425 391 468 637 448 495 462428 422 432 512 515 599554 328 466 506464 625 359 505 440 577 397 447 546 377 450 520 409 356 425 420 397 450 529 420 569 403 564465555

467745495383680477643448489459448 521403 442 408 422 464 455 532 550589 507 359 427 420 401590449 528 474 590 445 382 495 411 514476 509404 373453477 502 544454 555 408 528 452 695

424838550401709526605441442 394 483 594 447464 454 433424 478 529 581 601 547 392 467 460465 604 450 513 447 652 430 441 488 414 567 501 516 422425 447 452 498 523452 611 422 541453 564

a^ Computed by the Tax Foundation of Hawaii from October 1967 payroll data divided by full-time equivalent employment in state and local governments.

b. Includes instructional and other local school staff, and local librarypersonnel.

c. Includes natural resources.d. Includes finance administration and other general control.e. Includes special schools, welfare, sewerage and other sanitation, correc

tion, public service enterprises other than water, employment security administration, and all other general government functions,

SOURCE: U. S. Bureau of the Census, "Public Employment in 1967," Series GE67No. 1, U. S. Government Printing Office, Washington, D. C., 1968.

46

EMPLOYEES’ RETIREMENT SYSTEMReceipts, Expenditures, and Reserves

State of Hawaii — Selected Fiscal Years (In Thousands)

TABLE 39

1968 1967 1966 1963 1958SOURCE OF RECEIPTS

Retirement Reserve ContributionsState $ 12,842 $ 8,147 $ 7,286 S 5,760 S 5,457aCounties 5,017 4,526 3,659 3,240 2,228Employees 16,913 14,799 13,000 7,524 4,781

Social Security Contributions^State and Counties 7,308 7,273 4,379 3,184 2,065Employees 7,393 7,273 4,379 3,184 2,065

Administration 255 245 219 201 133Earnings from Investments 14,067 11,491 11,694 7,004 3,549TOTAL $ 63,795 $ 53,754 S 44,616 S 30,097 $ 20,278

OBJECT OF EXPENDITURESAdministration $ 253 $ 245 $ 219 S 201 S 133Benefits 13,634 9,389 9,032 4,060 2,907Refunds and Withdrawals 1,870 1,523 1,264 2,229 580Social Security 14,415 14,545 8,758 6,367 4,130TOTAL S 30,172 $ 25,702 $ 19,273 S 12,857 S 7,750

RETIREMENT SYSTEM CASH AND INVESTMENTS - AS AT JUNE 30Cash $ 2,493 $ 5,399 $ 6,985 S 1,555 S 3,409Certificates of Deposit 16,840 10,763 6,435 14,599 400Investments (287,370) (261,930) (240,720) (170,146) (107,760)

Bonds 128,111 131,533 131,213 96,168 80,712Stocks 86,403 62,520 52,635 32,087 12,180Mortgages 72,856 67,877 56,872 41,891 14,868

TOTAL $306,703 $278,092 $254,140 $186,300 $111,569MEMBERS IN SYSTEM 35.4 33.8 31.5 27.2 22.0EARNINGS AS % OF INVESTMENTSC 4.87% 4.39% 4.86% 4.12% 3.29%NOTE; Data not comparable with previous editions because of revision in certain areas.a. Includes $4,189,331 delayed contribution for biennium 1955-57.b. Obtained by dividing social security disbursements in half.c. Calculated by dividing reported earnings from investments by total reported investments.SOURCE: "Finances of Employee-Retirement Systems of State and Local Governments," U. S. Dept, of Commerce, Bureau of the

Census, G-GF63-No. 3, May, 1964 and GF-No. 10, January, 1967; U. S. Bureau of the Census, Census of Governments, 1967, Vol. 6, No. 2, "Employee-Retirement Systems of State and Local Governments; Annual Reports of the Employees' Retirement System, State of Hawaii; 1968 and cash and investments data prepared by the Employees' Retirement System, State of Hawaii.

COMPENSATION RATES IN SELECTED POSITIONSPrivate Industry and State— County Governments in Hawaii

TABLE 40

Job ClassificationPrivate

Industry^ Min. Max.

State-CountyGovernments®Min. Max.

Private State-CountyIndustry Governments

Median Mean Median MeanMonthly Salary RatesAccount Clerk $412 $ 556 $394 $504 $ 459 $ 473 $504 $489Bkkp. Mach. Oper. 348 454 357 457 380 389 375 392Cashier 355 470 394 504 414 405 504 516Civil Engr. (Entry) 667 921 555 709 643 668 709 658Civil Engr. (Lie.) 865 1,258 781 996 1,000 1,002 996 992Clerk 378 468 340 435 375 394 375 388Clerk-Steno. 362 491 375 480 410 423 414 432Draftsman 407 591 375 480 475 474 394 417Engr. Draftsman 520 746 529 675 665 654 643 647Instrumentman 539 753 555 709 554 625 709 704Junior Clerk 306 402 294 375 315 334 309 336Key Punch Operator 346 469 340 435 400 411 375 387Med. Lab. Tech. 539 685 583 744 575 588 692 676Nurse (Staff) 544 652 583 744 585 593 643 635Payroll Clerk 400 548 394 504 455 471 555 521Rodman & Chainman 380 490 375 480 418 442 425 437Secretary (Private) 486 662 480 744 570 575 643 657Senior Clerk 425 588 394 504 461 484 504 490Switchboard Oper. 338 453 309 394 406 402 332 351Typist (Junior) 294 387 309 394 315 327 309 325

Hourly Wage RatesAssistant Cook $1.87 $2,50 $2..53 $2.93 $2.32 $2.33 $2.93 $2.85Auto Mechanic 2.75 3.83 3,.42 4.00 3.19 3.32 3.77 3.73Carpenter 2.61 3.54 3,.27 3.79 3.06 3.20 3.61 3.56Cook 2.32 3.01 2,.97 3.44 2.90 2.92 3.27 3.26Electrician 2.88 3.60 3,.42 3.96 3.27 3.43 3.59 3.64Groundskeeper 1.74 2.27 2,.20 2.54 2.07 2.05 2.42 2.39Janitor (Heavy) 1.86 2.36 2,.20 2.54 2.02 2.05 2.42 2.35Janitor (Light) 1.80 2.26 2,.04 2.37 1.96 1.97 2.25 2.25Kitchen Helper 1.73 2.25 2,.20 2.54 1.99 1.97 2.54 2.44Laborer (Heavy) 1.69 1.99 2..24 2.59 2.14 2.17 2.47 2.42Laborer (Light) 1.67 2.26 2,.20 2.54 2.02 2.07 2.20 2.32Painter 2.71 3.57 3,.27 3.79 3.06 3.12 3.79 3.65Plumber 2.76 3.65 3,.42 3.96 3.06 3.18 3.77 3.75Truck Driver 2.34 3.10 2,.68 3.10 2.55 2.60 2.95 2.91Truck Driver 2.80 3.35 2..82 3.27 2.55 2.83 3.11 3.13Watchman (Night) 1.95 2.36 1,.78 2.27 2.06 2.07 2.39 2.31Welder 2.51 3.20 3,.42 3.96 3.10 3.34 3.77 3.75

NOTE: Results of sampling 391 private establishments and 14 governmentagencies employing 130,008 persons (48.7% of estimated civilian employee population) during May-July, 1968. Caution must be exercised in making comparisons due to variations among jobs and their fringe benefits.

a. Average of salary ranges.b. A “ Capacity, 1-1/2 - 4 tons: B = Capacity, 5 tons and over.SOURCE: Hawaii Employer's Council, Research Report: "Pay Rates in Hawaii,

Private Employment, Government Employment," Special Publication Number 82, September, 1968. (Survey conducted by the Council and the State and Counties' Personnel Services departments.)

48

CLASSROOM TEACHERS’ SALARIES: 1968-1969Estimated Average Annual Salaries and Distribution*

TABLE 41

stateAverage Salary

Amount RankBe low $5500

$55006499

Distribution^$65007499

$75008499

$85009499

$9500 & Above

$ 8,100 14 5.2% 22.8% 13.2% 19.0% 18.6% 21.2%U. S. Average 7,908 3.1 19.9 22.5 18.5 13.6 17.5AlabamacAlaskaArizonaArkansasCalifornia<3ColoradoConnecticutDelawareFloridacGeorgiaIdahocIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandcMassachusetts^MichiganMinnesotaMississippiMissouricMontanacNebraskaNevadaNew Hampshire New Jersey New Mexico New York North Carolina North Dakota OhioOklahomaOregonPennsylvaniaRhode IslandcSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming

5.875 10,4278,2406,1559.500 7,1508.500 8,200 8,130 7,002 6,2459.1008.1007, 781 7,062 6,550 6,978 6,6008, 815 8,1009, 288 8 , 0 0 0 5,772 7,108 6,900 6,585 8, 330 7,058 8,425 7,1339.000 6,852 6,050 7,750 6,641 7,965 7,858 8,0705.875 5,800 6,365 6,619 7,100 6,700 7,300 8,250 6,4008 . 0 0 0 7,252

47 1

1145 2

267

12 1332 445

15 22304133396

16 4

1850283440 9

318

273

35462337 20 21 174849 4338 293624 1042 1925

39.0 0 . 0 2 .0

38.4 0 . 0

16.7 0 . 0 1.03.59.0

24.0 0 . 0 0 . 0 5.8 6.2

2 0 . 017.018.01.04.0 0 . 0 0 . 0

41.014.011.825.8

0 . 04.61.03.0 0 . 0

10.543.08.1

20.05.03.02.0

42.038.130.012.023.021.914.0 0.6

24.0 5.5

13.0

41.00 . 0

19.533.610.020.519.5 10.0 10.030.042.010.0 2 0 . 0 12.1 42.329.021.035.0

8 . 02 0 . 0

8 . 015.047.52 0 . 024.029.213.037.015.028.0 16.039.029.718.046.011.522.0 9.0

30.0 28.931.521.023.234.018.0 2 2 . 0 35.027.512.2

16.00 . 6

18.515.7 10.034.3 2 0 . 027.022.536.022.516.025.031.731.340.031.032.514.01 2 . 015.02 0 . 0 9.2

24.547.525.719.023.323.634.016.039.014.023.027.02 0 . 023.02 0 . 0 2 2 . 016.528.547.02 1 . 024.015.015.030.024.028.0

4.014.119.0 8.3

10.0 16.014.527.040.019.07.0

23.02 0 . 038.2 12.88.0

18.5 10.025.023.017.032.0 2.1

30.0 9.5

13.1 21.0 17.715.6 2 2 . 015.010.7 7,8

28.4 6.0

26.0 26.038.05.0

11.57.0

10.027.012.734.02 2 . 09.0

19.0 35.4

0,0 21.0 18 .0 2.0

19.0 8 . 0

20.518.013.05.03.0

26.015.07.47.2 2.98.5 2.8

19.02 0 . 030.02 0 . 0

0 . 210.05.64.6

23.014.0 13.711.0 16.0

0 . 83.4

16.51.0

28.0 12.019.0 1.0 3.8 2.0 8.05.05.08.0

21.0 2.0

13.06.2

0 . 064.323.0

2 . 051.04.5

25.517.011.0 1.01.5

25.020.0 4.8 0.2 0.14.0 1.7

33 .0 21.030.013.0

0 . 01.51.6 1.6

24.03.4

31.12 . 0

37.0 0 . 0 2.1 6 .0 0 . 09.5

14.012.0

0 . 0 1.2 1.0 2.0 0.8 2.4

11,019.4

0 . 011.05.2

a. Limited to classroom teachers excluding principals, supervisors, librarians, guidance and psychological personnel, and related instructional workers. U. S. average includes 50 states and the District of Columbia.

b. Detail may not add to 100% because of rounding.c. Percent distributions estimated by NBA Research Division. Idaho and

Montana salaries also estimated by NBA.d. Includes extra compensation for coaching, supervision of intern teachers,

etc.SOURCE: "Estimates of School Statistics, 1968-69," Research Division,

National Education Association, 1968 (copyright 1968).

49

ESTIMATED TEACHER-PUPIL RATIOS AND PER CAPITA DIRECT SCHOOL EXPENDITURES

T A B LE 42

Teaeher-Pupii Ratios^State Elementary Secondary Total

Per Capita Direct Expenditures - Local Schools®CapitalOutlay Other

Total Expenditures Amount Rank

23.2 S28.51 $137.81 $166.3226.1 19.9 23.3C 20.64 121.17

Ala. Alaska Ariz. Ark. Calif. Colo. Conn. Del, Fla. Ga. Idaho 111. Ind. Iowa Kans. Ky.La.Me.Md.Mass.Mich.Minn.Miss.Mo.Mont.Neb.Nev.N. H. N. J. N. M. N. Y. N. C. N. D. Ohio Okla. Ore. Pa.R. I.S. C.S. D.Tenn.TexasUtahVt.Va. Wash. W. Va. Wise. Wyo.D. C.

27.223.724.525.0 27.424.323.6 ■>7.125.225.825.124.026.322.326.025.724.826.226.324.329.924.7 28.225.720.421.727.6 26.124.624.7 22.225.523.531.124.227.327.424.526.819.927.931.628.525.6 26.125.526.724.6 21.1 24.4

24.419.021.721.924.22 0 . 0 18.120.722.522.3 21.219.122.915.219.322.319.714.3 2 0 . 221.319.720.324.220.3 2 2 . 017.819.018.918.323.417.8 2 2 . 218.916.719.416.121.719.221.717.524.413.225.020.716.824.525.0 18.418.116.2

25.921.923.723.5 26.122.321.323.923.924 .4C23.022.024.719.622.924.3 22.5C21.523.422.924.422.526.424.020.919.923.522.72 2 . 024.120.124.521.824.921.9 22.324.521.924.5 19,126.523.0 26.823.621.9C25.025.921.7C19.62 0 . 6

19.0861.0713.63 11.8923.77 13,7222.55 34.05 15.81 14.70 16.6817.91 19.32 14.94 11.60 13.4324.63 13 .94 31.6215.92 25.68 37.49 10.9119.6417.12 11.61 27.48 24.24 14.30 28.75 21.36 16.0148.07 21.1013.77 20.2921.13 18.20 11.8024.14 18.2224.6536.14 8.54

22.7723.55 12.0229.08 18.54 21.39

86.46 105.54 46180.82 241.90 1135.99 149.62 1980.46 92.36 50

156.14 179.91 5142.33 156.05 15121.67 144.22 21118.90 152.95 16107.35 123.17 37100.76 115.47 42109.51 126.20 34110.89 128.81 30133,43 152.76 17131.18 146.12 20128.85 140.45 2387.19 100.63 49

106.54 131.17 28103.55 117.49 41125.53 157.16 13111.66 127.59 32136.95 162.63 11142.54 180.03 477.71 88.63 51

105.71 125.35 35122.79 139.91 25112.41 124,02 36135.47 162.95 1094.50 118.74 40

123.01 137.31 26155.14 183.89 3153.40 174.76 796.51 112.52 44

113.13 161.21 12106.74 127.84 31107.98 121.75 38146.22 166,52 8118.82 139.96 24102.91 121.12 3989.52 101.32 48

127.33 151.47 1885.02 103.24 47

105.15 129.80 29138.63 174.78 697.98 106.53 45

104.04 126.81 33133.22 156.77 14100.82 112.85 43107.22 136.31 27178.36 196.91 2122.81 144.21 22

NOTE; Data on per capita expenditures do not correspond with Table 31 since expenditures for supervision of local schools, state schools for the handicapped, and other similar special educational programs have been eliminated.

Estimated for the 1968-69 school year by dividing public school fall enrollment by number of classroom teachers as reported by the National Education Association.As reported by the U. S. Commerce Department for fiscal 1967. Detail may not add to total due to rounding,

c. Number of teachers include other non-supervisory instructional staff.SOURCE: "Estimates of School Statistics, 1968-69," Research Division, National

Education Association, 1968 (copyright 1968); "Governmental Finances in 1966-67," Series GF67-No. 3," Bureau of the Census, U. S. Department of Commerce, November, 1968.

a.

b.

50

HAWAII PUBLIC SCHOOL COSTSSelected Fiscal Years: 1958-1968'

TABLE 43

Object of Expenditure 1968 1967 1966 1963 1958Administration $ 7,480,337 $ 7,624,643 S 4,977,118 $ 1,887,387 $ 637,638Instruction

Personal Services 64,644,574 59,864,550 49,809,937 37,426,587 22,996,277Supplies & Other 6,717,778 8,520,062 7,221,157 3,643,708 1,386,676

Food ServicesPersonal Services 3,873,085 3,835,801 3,565,866 2,921,822 ( ,Supplies 7,692,856 7,855,403 6,516,190 5,580,507 ( 1,858,398^

Attendance & Health Services 2,027,947 1,718,750 1,415,928 412,798 (Pupil Transportation Services 1,185,151 843,417 839,606 410,204 (Operation of School Plants 3,697,525 3,610,435 3,463,460 4,096,005 1,802,911Maintenance of School Plants 5,700,000 5,671,767 5,540,526 2,468,506 1,886,889Retirement, Social Security, Medical

Insurance Contributions 7,129,217 6,661,310 5,912,594 3,280,630 1,875,521Workmen's Compensationh 403,067 322,992 165,037 81,867 33,404Interest 1,872,732 2,076,112 2,063,452 2,030,194 773,819Debt Retirement 4,303,384 4,239,333 3,690,926 2,711,506 747,067Sub-Total $116,727,680 $112,844,575 $ 95,181,797 $66,951,721 $33,998,600Capital Outlayc S 17,831,155 $ 21,708,873 $ 17,366,384 $ 4,322,084 $ 2,171,060Adult Education & Other Projects 1,901,256 2,009,664 1,623,019 224,679 127,674Technical Schools 796,678 533,485 842,417 (e) (e)Public Libraries 2,964,224 3,139,705 2,866,825 — —Vocational Rehab ilitation (f) (f) 1,027,961 — —Summer School 552,768 539,782 — — —Athletic Funds 504,637 500,383 — — —

Total $141,278,398 $141,276,467 $118,908,403 $71,498,484 $36,297,334Average Daily Enrollment 168,347 165,734 160,617 152,748 130,083Average Daily Attendance 158,111 156,292 151,253 143,535 122,248NOTE: Data prior to 1965 not strictly comparable in all areas due to a revised method of reporting.a. Includes expenditures from federal, state and county funds, but does not include all costs attributable to opera

tion of education department.b. Includes $263,918 (1968), $248,718 (1967) and $114,412 (1966) for unemployment compensation.c. Bond fund expenditures not included.d. Brea)cdown not available.e. Not available separately, but included in total.f. Transferred to State Department of Social Services.SOURCE: Annual Reports of the Department of Education, State of Hawaii.

T R E N D S IN HAW AII SC H O O L EN R O LL M E N T 1958-1988 at December

CHART 11

(000) (000)

PUBLIC SCHOOLS

Non-Federal®

Federal Connected^

200 _

150 _

100 _

50 _

Y / y A p r iv a te s c h o o l s

u n iv e r s it y o f HAWAilc

170,259177,020

182,840188,415

193,626200

1958 1959 1960 1981 1962 1963 1964 1965 1966 1967

a. Data adjusted to exclude enrollment in technical schools transferred in 1965 to University of Hawaii Community Colleges.b. Includes enrollment for partial as well as full federal impact-area. aid.c. Fall full and part-time enrollment in day time credit courses. Includes Manoa and Hilo campuses and Community Colleges.d. Preliminary 1968 enrollment data.

SOURCE: Department of Education. Research and Statistics Division, State of Hawaii; University of Hawaii.

TABLE 44

UNIVERSITY OF HAWAIICurrent Incom e and Expenditures — Selected Fiscal Years^

(Excludes Data for Plant Funds)

1968 1967 1966 1963 1958REVENUES

For Educational Purposes $(62,995,121) $(55,460,997) $(43,485,458) $(23,372,988) $(7,011,846)Federal Funds 26,626,945 23,219,845 16,961,898 8,645,781 978,906State Appropriations 32,557,646 28,664,382 23,257,105 12,883,895 4,128,181University Funds ( 3,810,530) ( 3,576,770) ( 3,266,455) ( 1,843,312) (1,904,759)

Student Feesb 2,240,806 2,021,805 1,795,292 916,082 1,362,019Departmental Earnings 459,729 457,043 319,031 43,860 421,397Gifts and Grants 932,263 914,713 1,029,727 580,026 70,479All Other 177,732 183,209 122,405 303,344 50,864

For Non-Educational Purposes ( 3,805,184) ( 3,126,549) ( 2,849,593) ( 1,906,571) (1,113,016)Auxiliary Enterprises 3,453,699 2,807,710 2,648,667 1,757,486 950,072Other Sources 351,485 318,839 200,926 149,085 162,944

TOTAL REVENUES $ 66,800,305 $ 58,587,546 $ 46,335,051 $ 25,279,559 $ 8,124,862EXPENDITURES

For Educational Purposes $(63,058,398) $(54,523,544) $(42,445,825) $(22,404,391) $(6,936,641)Instruction & Rel. Act. 20,994,903 19,126,864 14,638,463 8,553,147 3,234,113Community Collegesc 3,425,471 2,674,500 1,820,203 — —Organized Research 15,912,308 12,463,380 9,844,474 4,162,560 1,281,714Extension Service 1,353,574 1,314,471 1,171,145 1,000,282 737,301Libraries 1,850,293 1,495,849 1,315,418 598,398 270,135Plant Oper. & Maint. 2,712,564 2,349,345 1,895,856 1,270,313 582,461Public Services 11,661,200 11,547,736 8,996,388 5,434,446 270,011Adm. & General Expenses 5,148,085 3,551,399 2,763,878 1,385,245 560,906

For Non-Educational Purposes ( 3,564,333) ( 2,915,908) ( 2,499,927) ( 1,904,837) (1,032,828)Auxiliary Enterprises 3,195,984 2,696,205 2,282,844 1,744,111 881,451Other Sources 368,349 219,703 217,083 160,726 151,377

TOTAL EXPENDITURES $ 66,622,731 S 57,439,452 $ 44,945,752 $ 24,309,228 $ 7,969,469a. Detail not absolutely comparable between years because of changes in reporting.b. Since 1962, fees from special programs only. General tuition and fees credited directly to State general fund.c. Certain technical schools formerly under the Department of Education were transferred to the new Community

College System under the University.SOURCE: University of Hawaii, Financial Reports.

DIVISION OF AIRPORTSDepartment of Transportation — State of Hawaii

Revenues and Expenditures — Selected Fiscal Years

TABLE 45

1968 1967 1966 1963 1958

Fuel Tax^Airport Use Fees® Concession & Other Rentals Bond Funds Federal Grants All Others

REVENUES^$3,684,280 $3,036,575 $2,106,689 $1,181,985 $1,376,451

418,8633,668,444

363,6001,369,797

919,3952,748,513

146,739965,377

2,098,8901,938,230

388,6882,027,270

1,381,3221,212,695

2 0 0 , 0 0 01,230,551

137,999

70,265401,348

3,892,57029,43976,566

TOTAL

Personal Services Other Operating Expenses Capital Outlay Bond Interest All Others

$9,504,984 $7,816,599 $8,559,767 $5,344,552 $5,846,639EXPENDITURES'^

$1,640,2513,425,8081,518,107

806,754832,526

$1,408,5381,351,0231,984,534

836,748874,642

$1,258,4871,379,2472,452,301

719,350680,926

$ 968,3161,264,951 6,322,097

762,194 39,189

? 674,055586,507

4,288,682 134,269 45,020

TOTAL $8,223,446 $6,455,485 $6,490,311 $9,356,747 $5,728,533a. Excludes advances from Treasurer and investments redeemed; includes general fund

appropriations.Rate 3-l/2<: per gallon to 5-21-62, and 1<: thereafter.Landing fees only through 1962.Excludes bond principal payments since expenditures from bond funds are included; also excludes investments purchased and transfers.

SOURCE: Comparative Statements of Receipts and Expenditures (1958), Hawaii AeronauticsCommission; Consolidated Statement of Receipts and Expenditures, Airports Division, Department of Transportation, State of Hawaii.

b .c.d.

TABLE 46

DIVISION OF HARBORSDepartment of Transportation — State of Hawaii

Revenues and Expenditures — Selected Fiscal Years^

1968 1967 1966 1963 1958REVENUES

Wharfage $3,579,532 $1,987,593 $1,673,741 SI ,237,552 $ 817,370Pilotage Fees 453,747 396,706 324,885 227,903 237,407Docking and Mooring Fees 577,757 444,451 480,509 381,160 335,800Rentals 1,861,305 933,472 906,137 848,857 529,823Sales of Services and Materials 310,207 260,977 237,122 138,266 113,890Income on Investments 394,206 140,090 97,614 113,554 34,813Miscellaneous^ 102,785 93,500 15,060 7,925 46,127Total Revenues $7,279,539 $4,256,789 $3,735,068 S2 ,955,217 $2 ,115,230

EXPENDITURESAdministrationC $ 555,846 $ 299,911 $ 297,326 $ 200,932 $ 112,100Harbor Operations 1,015,013 721,501 702,917 509,256 327,319General Maintenance 780,278 579,033 555,729 437,055 165,982Engineering Services and Overhead 146,589 100,416 100,124 18,081 37,457Retirement Contribution 165,684 116,010 93,705 38,049 —

5% Surcharge on Gross Receipts 206,463 153,618 149,041 99,896 68,807Interest on Bonded Debt 1,443,045 392,587 345,500 374,200 133,565Debt Retirement 373,825 364,100 369,100 343,722 250,760City & County Fireboat 249,043 238,459 227,013 30,000 30,000Depreciation 752,400 734,651 721,707 567,587 469,740Miscellaneous 99,375 58,347 61,310 50,000 23,593Total Expenditures $5,787,561 $3,758,633 $3,623,472 $2 ,668,778 $1 ,619,323a. Report of the "public undertaking,” as defined in the resolution authorizing issuance of Harbor Revenue Bonds as

all harbors and waterfront improvements and other properties under the Harbors Division, except those principally used for recreation and landing of fish.

b. Includes permits to operate small power boats, recoveries for deimages to property, and sales of utilities, etc.c. Includes contributions to the Department of Transportation for general administrative expenses: $135,335 in

1968, $111,703 in 1967, $108,704 in 1966, and $155,091 in 1963.

S O U R C E : Audit Section, Annual Report, Territory of Hawaii, 1958: and Accountant's Reports, Harbors Division, Department of Transportation, State of Hawaii, 1963 and 1966-1968.

DIVISION OF HIGHWAYSDepartment of Transportation— State of Hawaii

Revenues and Expenditures— Selected Fiscal Years*

TABLE 47

1968 1967 1966 1963 1958REVENUES

Federal-Aid HighwaysPrimary & Secondary $ 4,534,083 $ 8,692,599Interstate & Defense 19,299,837 14,662,452Defense Access Roads 20,200 12,282

County Contributions — —State Funds

General Fund Cash — 23,974Bond Realizations — 5,628,526Fuel Tax 11,020,695 10,436,791Interest Earned — 129,529Rental of Buildings 130,188 64,485Sale of Condemned Improvements 276,131 103,145Private Contribution 140,465 —Miscellaneous_______________________________ 77,775_________ 61,229

$ 4,201,234 13,920,048

424,8363,024,3609,890,042

163,40240,39951,484

15,161

$ 5,374,551 1,250,498

^29,3485,672,0138,490,282

305,974166,085209,72423,288

$ 3,512,870

154,69025,000

12,500,0006,589,851

297,055198,714137,880121,078

Total $35,499,374 $39,815,012 $31,730.966 $22.421.763 $23.537.138EXPENDITURES

Administration 5% Surcharge Maintenance Land Acquisition Design & Construction State Office Building Interest Paid Miscellaneous

$ 826,676343,917

4,052,214 6,093,972

26,404,0551,871,699

$ 732,027342,969

3,887,219 8,856,741

20,699,0362,410,153

$ 623,480 299,890

4,073,413 2,297,310

18,131,3392,762,620

607,196265,373

2,960,6693,212,9377,290,4032,130,929

314,100

1,492,7958,726,8179,325,2071,060,000

943,093479,936

Total $39,592,533 $36,928,145 $28,188,052 $16,467,507 $22,341,948a. Excludes income from sale of investments and reimbursements and expenditures for investments.

Since bond funds are included, bond principal payments are excluded to eliminate duplication. SOURCE: Annual Reports, Department of Public Works, Territory of Hawaii and Department of Transporta

tion, State of Hawaii. Data for 1967 and 1968 from Fiscal Section, Department of Transportation, State of Hawaii.

THE LONG T E R M PU BLIC BO NDED DEBT

HAWAII STATE AND COUNTIESstate and local long-term per aapita debt at June SO, 1967 was

$641, almost $100 above the national per capita average of $544. Nine states have more debt outstanding on a per capita basis. When debt is related to personal income, Hawaii ranks 17th highest in the country. Debt in Hawaii is 158% of tax collections for a ranking of 27th.

Public bonded debt outstanding at December 31, 1968 increased 1S% over the 1967 amount outstanding and now totals $533.8 million (page 59). Of this amount, 84% ($448.4 million) are general obligation bonds chargeable directly to general revenues of the state and/or counties. The remaining $85.4 million are revenue bonds repaid from special earmarked receipts which include airport earnings, harbor funds, fuel taxes, and highway revenues. Other revenue issues included in the total but repaid from earnings or fees include: water utilities, University of Hawaii student housing, and multi-deck parking structures of the State. The public bonded debt excludes Hawaii Housing Authority revenue bonds (which are backed by the federal government) and Improvement District Bonds of the City and County of Honolulu since they are payable from special assessments made on real property owners.STATE OF HAWAII

The Constitution of Hawaii limits debt to 3.5 times defined average general fund revenues of the three fiscal years immediately preceding the session of the legislature authorizing such debt. Under this provision, the limit on December 31, 1968 was $776.0 million (3.5 times revenues of $221.7 million).

Total funded debt chargeable to this limit on December 31, 1968was $356.4 million. Outstanding bonds of $176.9 million amounted to49.6% of the funded debt; authorized but as yet unissued bonds accounted for the remaining $179.5 million (50.4%). The debt margin was $419.6 million.

In addition, the State has $115.7 million in outstanding and $33.9 million in authorized-unissued general obligation debt for which the State has pledged its full faith and credit but does not count against the debt limit.

Revenue bonds issued by the State equalled $44.4 million, withharbor bonds making up the bulk - $29.6 million - of this total. Airport bonds amounted to $12.7 million. University of Hawaii housing bonds amounted to $1.3 million, and multi-deck parking structures added the remaining $0.8 million (page 59).THE COUNTIES

County debt is limited by the Constitution to 15% of the net property valuations within the respective county. At December 31, 1968, general obligation debt outstanding for the four counties was $174.9 million (page 62). Of this amount, $155.8 million were county issues, and $19.1 million were issued for the counties by the State (but are chargeable against the counties' debt limit and are payable from county revenues). Authorized-unissued bonds amounted to $35.8 million.

Water revenue bonds outstanding at the end of the year totalled $41.0 million (page 59).

57

STATE AND LOCAL LONG-TERM DEBTRelated to Population, Personal Incom e, and Tax C o llec tion s

Debt O u tsta n d in g at June 30,1967 — B y S ta te s

TABLE 48

statePer Capita Debt Amount Rank

Per Cap. Debt as a % of Per Cap. Personal Income Tax CollectionsPercent Rank Percent Rank

HAWAII 641.07 10 19.25 17 157.61 27U. S. Average 543.81 17.21 175.70Alabama 448.18 29 20.72 11 233.37 7Alaska 862.58 4 23.08 6 276.60 4Arizona 462.65 27 17.01 24 145.25 33Arkansas 309.08 45 14.73 30 155.48 29California 687.72 8 18.76 19 165.90 21Colorado 479.63 25 15.30 28 138.30 38Connecticut 742.54 5 18.71 20 223.56 9Delaware 1,184.95 1 32.54 2 348.58 1Florida 567.08 17 19.88 12 206.52 14Georgia 410.79 32 16.17 26 182.73 19Idaho 232.86 50 9.04 48 79.21 49Illinois 455.73 28 12.15 42 152.81 31Indiana 308.97 46 9.67 47 100.29 47Iowa 244.71 49 7.87 50 74.60 50Kansas 443.19 31 14.48 31 140.81 37Kentucky 649.20 9 26.76 3 304.66 3Louisiana 633.01 11 25.77 4 242.65 5Maine 329.62 43 12.41 39 124.60 42Maryland 720.90 6 21.07 9 221.90 10Massachusetts 608.00 12 17.17 23 164.97 22Michigan 467.90 26 13.78 34 145.00 34Minnesota 508.88 21 16.33 25 142.55 35Mississippi 367.59 37 19.39 14 186.84 17Missouri 347.51 39 11.61 44 133.52 39Montana 337.53 41 12.21 41 112.65 45Nebraska 572.51 16 18.58 21 210.57 13Nevada 701.00 7 19.56 13 183.97 18New Hampshire 408.00 33 13.36 36 158.71 25New Jersey 517.46 20 14.11 32 164.24 23New Mexico 446.00 30 18.01 22 161.91 24New York 887.29 3 23.60 5 193.80 16North Carolina 266.46 47 10.92 46 119.06 43North Dakota 344.14 40 13.84 33 129.11 40Ohio 375.53 35 11.69 43 150.79 32Oklahoma 563.38 18 21.32 8 218.09 11Oregon 491.89 24 16.06 27 156.66 28Pennsylvania 599.44 13 18.81 18 214.06 12Rhode Island 499.86 23 15.02 29 168.63 20South Carolina 250.40 48 11.31 45 127.10 41South Dakota 146.85 51 5.67 51 51.06 51Tennessee 500.86 22 20.92 10 236.50 6Texas 531.20 19 19.36 15 232.04 8Utah 575.76 15 22.11 7 200.29 15Vermont 353.42 38 12.51 38 114.97 44Virginia 370.89 36 13.23 37 155.14 30Washington 1,181.81 2 33.56 1 332.12 2West Virginia 315.79 44 13.53 35 141.24 36Wisconsin 391.07 34 12.39 40 110.33 46Wyoming 580.67 14 19.34 16 158.57 26Dist, of Columbia 330.74 42________8.02______ 49 97.33 48SOURCE: Governmental Finances in 1966-67 (GF 67, No. 3), and Survey

of Current Business, August, 1968, U. S. Department of Commerce.

58

PUBLIC BONDED DEBT IN HAWAIIB o n ds O u tsta nd ing by A g en c ie s and Funds

A t Decem ber 31,1968 and June 30, 1969a

TABLE 49

Governmental Unit and Funds Charged with Debt Service Costs:

Outstanding December 31, 1968______ Bonds Issued by;State Counties Total

Estimated Outstanding June 30, 1969 Bonds Issued by;_______

Counties TotalSTATE

General Fundh Highway Fund Airport Fund Harbor Fund Land Revolving Fund Sand Island Receipts Veterans' Loan Fund World's Fair Airport Revenue^ University of Hawaii^ Multi-Deck Parking*^ Harbor Fundd

HONOLULU CITY-COUNTY General Fund Highway Fund Water Supply Fundd

MAUI COUNTY General Fund Water Fund<^

HAWAII COUNTY General Fund Water Fund^

KAUAI COUNTY General Fund Highway Fund Water Fund

$181,193,24358,007,2377,603,7918.150.000 3,507,311 1,410,500

13,145,871465,600

12.735.0001.309.000

766,00029.633.000

13,139,180

1,039,422

4,149,617

678,167135,660

6 , 0 0 0 c

132,882,0007.393.000

38,205,000

8.669.0001.963.000

4.705.000819.000

1.667.000175.000290.000

$181,193,24358,013,2377,603,7918.150.000 3,507,311 1,410,500

13,145,871465,600

12.735.0001.309.000

766.00029.633.000

146,021,1807.393.000

38.205.000

9,708,4221.963.000

8,854,617819.000

2,345,167175.000 425,660

$176,941,06556,720,7187,290,7658.150.000 3,392,516 1,330,724

12,324,16912.490.0001.298.000

766,00029.633.000

12,436,675

962,150

4,010,221

649,550128,445

6 , 0 0 0 c

130,384,0007.353.000

36,631,000

8.524.0001.926.000

4.705.000819.000

1.667.000175.000290.000

$176,941,06556,726,7187,290,7658.150.000 3,392,516 1,330,724

12,324,16912.490.0001.298.000

766.00029.633.000

142,820,6757.353.000

36.631.000

9,486,1501.926.000

8,715,221819.000

2,316,550175.000 418,445

Total $337,068,599 $196,774,000 $533,842,599 $328,523,998 $192,480,000 $521,003,998

d.

Based on gross debt exclusive of cash reserves. Excludes Honolulu Improvement District and Hawaii Housing Authority revenue bonds not chargeable to public funds. June 30, 1969 data based on bonds outstanding at December 31, 1968, and do not include contemplated issues.Includes bonds reimburseable from future Hawaii Water Authority revenues on which legislature granted moratorium on repayment for 10 years from initial service.County bonds issued prior to 1945 for highway purposes, but reimburseable from state highway funds to Maui County.Special revenue bonds.

RCE: Prepared by the Tax Foundation of Hawaii from data received from and verified by the State Department of Budget &Finance; City & County of Honolulu, Finance Department; and County Auditors.

CHART 12

OUTSTANDING GENERAL OBLIGATION BO NDSState of Hawaii — By Fund

At December 31 — (In M illions)

M ILL IO N S OF DO LLARS

M IL L IO N S OF DO LLARS

P R IN C IP A L R EPA YM EN T & IN T ER EST CH A R G ES R E IM B U R S A B L E FROM:

State Special Funds Highways

All Others^

State General Fund

19S8 1963 1966 1967 1968

a Reimbursable from: Airport Special Fund, Harbor Special Fund, Land Revolving Fund, Sand Island Receipts, Veterans’ Loan Fund, and W orld 's Fair Fund.SO URCE; State Department of Budget & Finance.

60

T H E S T A T E O F H A W A II F U N D E D D E B TAmounts Chargeable to Constitutional Limits

At December 31 — (In M illions)

CHART 13

M ILL ID N S M IL L ID N S

$800

$600

$400

$200

Dutstanding Bonds

— $800

_ $600

— $400

— $200

1966 1967 1968

a. In 1958, debt was limited to 10% of net assessed valuations; in 1963-1967; the limit was 15% of net assessed valuations. Under provisions of the Constitution as amended in 1968, debt is limited to 3.5 times defined average general fund revenues of the three fiscal years immediately preceding the session of the Legislature authorizing such debt. The definition of debt chargeable to the limit has also changed. Data for 1968 estimated.

SO URCE: Prepared by the Tax Foundation of Hawaii from information received from the State Department of Budget & Finance.

61

TABLE 50

COUNTY GENERAL OBLIGATION BONDSState of Haw aii— By Counties: December 31, 1968

Amount of General Obligation Debt1

NetDebt as a % of Assessed Values

Description Honolulu Maui Hawaii Kauai All Counties Honolulu Maui Hawaii KauaiIssued and Outstanding

State Bonds® $ 13,139,180 $ 1,039,422 $ 4,149,617 $ 813,828 $ 19,142,047 0.43 0.52 1.64 0.80County Bonds 140,275,000 8,675,000b 4,705,000 2,132,000 155,787,000 4.55 4.35 1.86 2.09

TOTAL COUNTY BONDED DEBT° $ 153,414,180 $ 9,714,422 $ 8,854,617 $ 2,945,828 $ 174,929,047 4.97 4.87 3.50 2.89AUTHORIZED-UNISSUED DEBT $ 35,676,800 $ — $ 291,000 $ — $ 35,967,800 1.15 — 0.11 —Total Authorized Debt

State Issues $ 13,139,180 $ 1,039,422 $ 4,149,617 $ 813,828 $ 19,142,047 0.43 0.52 1.64 0.80County Issues 175,951,800 8,675,000 4,996,000 2,132,000 191,754,800 5.70 4.35 1.97 2.09

TOTAL AUTHORIZED DEBT $ 189,090,980 $ 9,714,422 $ 9,145,617 $ 2,945,828 $ 210,896,847 6.13 4.87 3.61 2.89

Debt Limits and Margins 1968 Property Values $3,084,393,862 $199,440,677 $253,314,549 $102,066,340 $3 ,639,215,428 _ _ _ _Const. Debt Limitd 462,659,079 29,916,102 37,997,182 15,309,951 545,882,314 -- -- — —Debt Charged to Limit 150,173,675 9,492,150 8,715,221 2,909,995 171,291,041 4.87 4.76 3.44 2.85

DEBT MARGIN S 312,485,404 $ 20,423,952 $ 29,281,961 $ 12,399,956 $ 374,591,273 10.13 10.24 11.56 12.15

a. State bonds issued for county purposes are reimburseable to the state general fund by each respective county.b. Includes $6,000 for highway purposes issued prior to 1945 but reimburseable from state funds.c. Based on gross debt exclusive of cash reserves.d. State Constitution limits debt to 15% of net assessed property valuations in each county.SOURCE: Prepared by the Tax Foundation of Hawaii from data received from and verified by the City & County Finance Department

and County Auditors.

TABLE 51STATE GENERAL OBLIGATION BONOS

State of Hawaii — Decem ber 31,1968

Principal and Interest Payments Chargeable to:a

Issued and Outstanding

Authorized But Unissued Total

General Fund $181,193,243 $173,612,764 $354,806,007Highway Special Fund 58,007,237 27,512,706 85,519,943Airport Special Fund 7,603,791 1,324,000 8,927,791Harbor Special Fund 8,150,000 — 8,150,000Land Revolving Fund 3,507,311 5,259,793 8,767,104Sand Island Receipts 1,410,500 — 1,410,500Veterans' Loan Fund 13,145,871 211,500 13,357,371Home Loan Funds — 5,500,000 5,500,000World's Fair 465,600 — 465,600County Funds

Honolulu City-County 13,139,180 — 13,139,180Maui County 1,039,422 — 1,039,422Hawaii County 4,149,617 — 4,149,617Kauai County 813,828 — 813,828

Total $292,625,600 $213,420,763 $506,046,363a. Interest and principal on State bonds are charged against State

general revenues, but the counties and special fund agencies reimburse the General Fund for county and special fund projects.

SOURCE: State Department of Budget & Finance.

TABLE 52

STATE BONOS CHARGEABLE TO CONSTITUTIONAL OEBT LIMITATIONSState of Hawaii — Decem ber 31,1968

Principal and Interest Payments Chargeable to:

Issued and Outstanding^

Authorized But Unissued Total

General FundRome Loan FundInstrument of Indebtedness

$176,941,065 $173,612,7645,500,000

375,000$350,553,829

5,500,000375,000

Total $176,941,065 $179,487,764 $356,428,829Constitutional Debt Limit: 3.5 times $221.7*^ million $776.0 millionDebt Charged to Limit $356.4 million<=Debt Margin $419.6 millionNOTE: Estimated by the Tax Foundation of Hawaii. (Under the provi

sions of the State's new Constitution approved by the voters on November 5, 1968, the determination of the State's funded debt shall be made annually and certified by law or as prescribed by law. Until such a determination is made, the funded debt can only be estimated.)

a. Excludes bonds due for redemption prior to June 30, 1969 - $4,252,178 charged to the general fund and $465,600 charged to the World's Fair Fund.

b. Defined average general fund revenues of the preceding three years (fiscal 1966 - fiscal 1968).

c. Debt of $356.4 million is equal to 1.6 times average general fund revenues.

SOURCE: Prepared by the Tax Foundation of Hawaii from information received through the State Department of Budget 6 Finance.

63

IN D E X TO T A B L E S A N D C H A R T S — G O V E R N M E N T IN H AW AII 1969

Airport Finances...................... 54Alcoholic Beverage Tax (See Liquor) Allocation of State and County Taxes... 15 Assessed Valuations (See Real Property)

BBalance of Payments................... 6Bank Deposits in Hawaii 6, 8Bonds (See Debt)

Comparative Data, by StateCorporate Income Tax Rates.......... 25Debt, Long-Term Bonded.............. 58Employees, Public........... 45Expenditures, Per Capita............ 39Income, Per Capita Personal......... 10Liquid Fuel Tax..................... 23Liquor Tax.......................... 23Personal Net Income Tax............. 24Salaries, Classroom Teachers........ 49Salaries, Public Employees.......... 46State and Local Sales Tax........... 22Tax Burden.......................... 17Teacher-Pupil Ratios................ 50Tobacco Tax......................... 23

Contracting......................... 8,18Conveyance Tax.................. 14,15,33Corporate Income Tax............... 25,32Cost of Living - Hawaii............... 6County Information

Allocation of Taxes.............. 15,18Bank Deposits....................... 8Bonded Debt......................... 62Employment.......................... 8Expenditures.................. 38,42-44Fuel Tax Collections.......... 19,30,31Liquor License Revenues 14,15,29-31Motor Vehicle Registrations......... 8Motor Vehicle Weight Tax.,14,15,29-31,33Personal Income, Per Capita......... 9Population.................... 5Real Property Data............ 8,26-28Revenues...................... 13,29-31State Grants-in-Aid........... 18,29-32Sugar Income........................ 8Unemployment Rate................... 8

DebtCounty................. 62Federal............................. 34General Information................. 57Limitations................... 57,62,63State and Local Per Capita.......... 58Trends..................... Cover,60,61

Drugs, States Taxing.................. 22E

Earmarked Taxes in Hawaii............. 13Economy of HawaiiCounty Statistics................... 8General Information................. 4State Growth........................ 6

EducationClassroom Teachers' Salaries........ 49Enrollment in Hawaii................ 52Expenditures............ 38,42-43,50,51Pupil-Teacher Ratios................ 50University of Hawaii................ 53

EmploymentBy Industry......................... 11Civilian Labor Force............... 6, 8Government....................... 11,12Trends.............................. 12Unemployed.................. 4, 6, 8,11

Estate Taxes.................... 14,15,32

Excise Taxes........... 14,16,18,20,21,32ExpendituresDirect General, Per Capita.......... 39Federal Government.................. 34General Information................. 38Hawaii, County of................ 43,44Honolulu, City & County.......... 42,44Kauai, County of................. 43,44Maui, County of.................. 42,44State of Hawaii.................. 40,41Visitor............................. 6

FFederal GovernmentAdministrative Budget............... 34Debt................................ 34Employment in Hawaii............. 11,12Grants to Hawaii..... 20,21,29-31,35,56Military Expenditures 4, 6Tax Collections in Hawaii........ 35,36

Financial InstitutionsBank Deposits 6, 8Tax........................... 14,15,33

Food, States Taxing................... 22Franchise Tax (See Public Utility)Fuel Tax (See Liquid Fuel Tax)

General Excise Tax........ 14,16,18,20,21General Fund Finances................. 37Government Costs by County......... 41-43

HHarbor Finance........... 55Hawaii, County of

Debt.......................... 59,62,63Expenditures..................... 43,44Grants-in-Aid.................... 29,31Liquid Fuel Tax..................... 19Personal Income..................... 9Population Trends................... 5Real Property Tax................ 26-28Revenues......................... 29,31

Health ExpendituresCounty........................... 42-44Per Capita, by State................ 39State of Hawaii.................. 40,41

Highway Finance....................... 56Honolulu, City and County of

Debt.......................... 59,62,63Expenditures..................... 42,44Grants-in-Aid.................... 29,30Liquid Fuel Tax..................... 19Personal Income..................... 9Population Trends................... 5Real Property Tax................ 26-28Revenues......................... 29,30

Hotel Inventory 6, 8Housing Units......................... 6

Inccmie, PersonalPer Capita, by State................. 10

by County............... 9Sources of.......................... 7Trends........................... Cover

Income TaxCollections.......... 13-16,20,21,34,35Corporate........................ 25,32Credits....................... 22,24,32Personal......................... 24,32Rates......................... 24,25,32

Inheritance Tax................. 14,15,32Insurance Tax................ 14,15,18,33

Kauai, County of Debt.......... 59,62,63

64

Expend!tures..................... 43,44Grants-in-Aid.................... 29,31Liquid Fuel Tax..................... 19Personal Income..................... 9Population Trends................... 5Real Property Tax................ 26-28Revenues......................... 29,31

Labor (See Employment)Licenses and Permits 14,15,18,30,31,33Liquid Fuel Tax

Collections.......... 14-16,19,30,31,54Description......................... 32Rates, by State..................... 23

Liquor TaxesCollections............. 14,15,30,31,33Rates, by State..................... 23

MManufacturing in Hawaii.......... 6, 8,18Maui, County of

Debt.......................... 59,62,63Expenditures..................... 42,44Grants-in-Ald.................... 29,30Liquid Fuel Tax..................... 19Personal Income .............. 9Population Trends................... 5Real Property Tax................ 26-28Revenues......................... 29,30

MilitaryEmployment by....................... 11Expenditures 4, 6Personal Income Source.............. 7Population in Hawaii................ 5

Motor Carrier Taxes (See Public Service) Motor Vehicles

Gasoline Tax (See Liquid Fuel)Registration in Hawaii 6, 8Weight Tax.............. 14,15,29-31,33

Parking Meter Collections.......... 30,31Personal IncomePer Capita, by State................ 10Sources. ......................... 7Total in Hawaii................ Cover, 6

Personal Income Tax................ 24,32PineappleCanning........................ 6, 8,18Employment.......................... 11Tax.............................. 18,32Value of............................ 6

PopulationCivilian............................ 5Military............................ 5Trends......................... Cover, 5

Prescription Drugs, Taxing of......... 22Public Service Co. Tax.......... 14,18,33Public Utility Tax 14,15,18,30,31,33

Real PropertyAssessed Valuations......... 6, 8,26,27Conveyance Tax................... 14,33Home Exemption................... 26,33Land Use Classes................. 26-28Tax Collections............... 14,28-31Tax Rates........................ 28,33

RentalsPer Capita, County.................. 8

Retail Sales 6, 8Retirement System, State Employees'.... 47 RevenuesAirports............................ 54Countie.................... 14,15,29-31Federal............................. 34

General Information................. 13Harbors............................. 55Highways............................ 56Major Sources................. 13,20,29State of Hawaii............... 13,20-21University of Hawaii................ 53

Salary DataClassroom Teachers.................. 49Private Industry.................... 48Public Employees................. 46,48Sources of Personal Income..... 7

Sales Tax............................. 22Schools (See Education)State Grants to Counties........ 16,29-31SugarEmployment.......................... 11Tax.............................. 18,32Value 6, 8

TaxBurden.............................. 17Cigarette........................ 23,33CollectionsCounty................... 14,15,29-31Federal........................ 34-36State.................... 14-16,18-21Trends........ ............ Cover, 36

Conveyance................. ...... 14,33Corporate Income................. 25,32Credits....................... 22,24,32Earmarked........................... 13Financial Institutions........ 14,15,33General Excise....... 14-16,18,20,21,32Inheritance and Estate........ 14,15,33Insurance.................. 14,15,18,33Levied in Hawaii................. 32,33Liquid Fuel............. 14-16,23,30-32Liquor............... 14,15,23,30,31,33Motor Vehicle Weight....... 14,15,29,33Per Capita Tax Burden....Percent of Incme........Personal Net Income......Public Service Company....Public Utility Franchise,Real Property............Sales Tax................Structure - Hawaii.......Tobacco Products.........Trends...................Unemployment Compensation.Use Tax..................

Tax Foundation of HawaiiTrustees & Officers.. Inside Front CoverDescription......................... 1

Teachers (See Education)Telephones, by Counties............... 8Tourism (See Visitors)

6,17........ 17 24,3214,15,18,32 ,15,18,30-32 ... 26-28,33 22,32... 13,32-33 23,33... Cover,36 14-16 18,32

U nemp loy men tCompensation Tax........... 14,16,20,21Rate of....................... 6, 8,11

University of Hawaii.................. 53Use Tax...................... 14,15,18,32

VisitorsExpenditures....... 6,Number of.......... .'............. 6,

Wholesale Sales Value............... 6,

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GOVERNMENT IN HAWAII...Incorporated in 1953, the Tax Foundation of Hawaii is an independent,...

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