Economists fear that the cut in the university budget could have an impact on the local economy

HONOLULU, Hawaii (HawaiiNewsNow) – Over the next two years, the University of Hawaii system is facing a $ 90 million decline in government funding.

A new report from UH economists suggests the cuts will result in a nationwide decline in economic activity of $ 650 million, potentially slowing the state’s recovery from the pandemic.

“It is a huge achievement not only for our students and faculty and the ability to do our world-class research, but also for the economy,” said Kim Burnett, research economist with the University of Hawaii Economic Research Organization.

According to economists, every dollar that the UH Legislature puts in generates nearly seven dollars in additional federal research grants, tuition fees, and other direct and indirect revenue.

They said that any decrease in that funding would increase it sevenfold.

However, some state lawmakers believe that the impact of budget cuts on the UH system will be less severe given the increase in federal funding.

They said the latest stimulus package will provide about $ 60 million to UH.

“I think federal funding will offer respite from the budget cuts UH is suffering. It’s a relief, ”said State Representative Gregg Takayama, chairman of the House of Representatives Higher Education Committee.

But UH officials said much of that federal funding should be used to help fund students – rather than running the university.

They said much of the federal money will be spent on non-government-funded businesses like college dormitories, restaurants, and athletics.

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