Military Spending

Project Details:
Final Report (PDF)

HIPA and the Chamber collaborated with the RAND Corporation, one of the premier think tanks in the U.S., on conducting original research on defense spending in Hawaii. The last time a report of this kind was done was in 1963.

The study, titled “How Much Does Military Spending Add to Hawaii\‘s Economy,” captures defense activity in Hawaii, including personnel and procurement. Defense personnel expenditures cover active-duty personnel, members of the Hawaii Select Reserve, U.S. Department of Defense civilian employees and retirement benefits paid to military retirees residing in Hawaii. Defense procurement expenditures covered all contracts greater than $3,000 in value with Hawaii designated as the principal place of performance. This research was sponsored by the Office of the Secretary of Defense.

RAND estimates that during FY 2007-2009, Department of Defense expenditures in Hawaii averaged $6.527 billion per year. The total reflects personnel expenditures in the amount of $4.074 billion, and procurement expenditures totaling $2.453 billion.


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