House Speaker Joe Souki and House Finance Chairman Calvin Say said yesterday that if lawmakers can't find the money to pay for that pact and other collective-bargaining agreements, the Legislature could reject them and send them back for renegotiations.

The teachers' agreement means cuts to other programs, lawmakers concluded.

"It's scary," said Say (D, Palolo), who echoed fears that the deal - with a 17 percent raise over four years beginning with fiscal 1995-96 - sets a benchmark for other unions that still haven't settled.

Lawmakers also may have to find an additional $80 million in raises for the 10,000 other state employees whose contracts are still being negotiated, said Souki (D, Wailuku). The House plan sets aside only $24 million for those workers, Say added.

Souki said taxpayers could be paying as much as $300 million to cover salary increases for state employees over the next two years.

Said Senate Ways and Means Co-Chairwoman Lehua Fernandes Salling (D, Kapaa): "Obviously, it does put more pressure on us to find more money. But we have been looking from Day One."

While some lawmakers are ruling out a broad-based tax increase, others, such as House Human Services Chairman Dennis Arakaki (D, Kalihi Valley), suggested an increase could be earmarked for education.

Under the salary agreement, public schoolteachers will see their base pay increase by 17 percent by February 1999, said Charles Toguchi, Cayetano's chief of staff, who was the administration's lead negotiator in talks with the Hawaii State Teachers Association union.

About 12.75 percent is directly attributable to pay raises, while the other 4.25 percent is due to the extra pay for teachers for the additional seven instructional days that will become part of the 1998-99 school year.

If lawmakers leave Cayetano's financial plan untouched, it covers the teachers' raises, Toguchi said.

Cayetano allocated $94 million for teachers' pay increases. And by jettisoning three of his tax relief proposals - for first-time home buyers, for tuition expenses and giving a tax exemption for construction-related work done overseas - Cayetano freed up $23.7 million for teachers' raises.

But Cayetano's financial plan has been shredded by lawmakers, who feel that it doesn't address the state's fiscal woes or the need for economic development.

Rep. David Tarnas (D, South Kohala-North Kona), who heads the Ocean Recreation and Marine Resources Committee, said committee heads were asked at a meeting yesterday to review their budgets again in light of the settlement and the possible cost of public-employee contracts that still must be negotiated.

One item that may have to be pared is Cayetano's "Ocean State" initiative, which seeks to nearly double the state aquatics program's $2.1 million annual budget, said Tarnas, who supports the request.

Senate President Norman Mizuguchi said that since citizens have an aversion to tax increases and seem cool to gambling initiatives to raise revenue, legislators on his side of the aisle will focus on budget reductions and privatization.

"I am advising the (key) committees to look at targeted reductions in the state budget," said Mizuguchi. "Of course it won't happen this year but we're really going to move on privatization. Target No. 1 is the convention center, to reduce the debt service and use the dollars for state coffers."

The situation led some lawmakers to mull the need for tax increases. Labor Chairman Nobu Yonamine (D, Pacific Palisades-Manana) said a half percent increase in the general excise tax, combined with some balancing tax credits, could generate $150 million. The lawmaker recalled being surveyed about the need for more taxes.

"I just said, only for compelling reasons," he said. "And we're arriving at that soon, real soon."

But others saw a tax increase only as a last resort, if at all. Souki said he would look first toward balancing the budget with cuts in a variety of unspecified programs. "As much as possible, we don't want to raise taxes. We'll do everything we can so that we don't."

Minority Leader Gene Ward (R, Mariner's Ridge-Aina Haina) said a tax increase would create a "win-lose situation by temporarily helping students and parents, but hurting everyone in the long run."

Senate Majority Leader Mike McCartney (D, Kaneohe) said funding the settlement will call for some tough decisions on holding back money for programs, but said it can be done without raising taxes. "The $100 million is spread over four years. A lot of it is back-end loaded ... We can ease into it."

But Republican Sen. Sam Slom said he fears a tax increase looming. The question is where is it going to come from. The money only exists in the pockets of Mr. and Mrs. Hawaii ... (the) $100 million is predicated on the governor getting his package through the Legislature. I'd say the chances of that are slim to none."

After a statewide teachers strike was averted yesterday, Mizuguchi said there is a better way to solve such labor disputes.

"What's important here is that whenever you have an impending strike, it really disrupts the lives of many citizens, and there should be a better way to negotiate with public employees," he said.

Binding arbitration would prevent workers from striking by leaving final contract decisions to be decided by a neutral panel.

In 1995, the Hawaii Government Employees Association opted for binding arbitration under a new state administration. This came a year after 16,000 HGEA members struck for 12 days.

But Gov. Ben Cayetano has said arbitration focuses only on individual contracts and not on how a decision affects all units and the bigger budget picture.

Meanwhile, Mizuguchi said hefty raises for teachers may create a "whipsaw effect" on other unions.

"There could be another major challenge to (Cayetano) as he approaches other re-openers," he said.

Eight units of public workers have contracts open for negotiation in the state Office of Collective Bargaining.

Only one is allowed to strike: a blue-collar unit of the United Public Workers that represents 2,000 school custodians and cafeteria workers.

Gary Rodrigues, state director of UPW, could not be reached for comment yesterday.

The Hawaii State Teachers Association released a new set of figures for yesterday's tentative salary agreement with the state that will give teachers a 17 percent raise by February 1999:

3.9 percent across-the-board raise effective Feb. 1

4 percent across-the-board raise in August

2 percent across-the-board hike in August 1998, plus 3.22 percent incremental move for Steps 1-13 and 3 percent increase for Step 14

2.25 percent across-the-board raise in February 1999, plus 4 percent increase for Step 14 and 3 percent increase for Step 14A

Jack Johnson, Nuuanu "For most of the teachers I think it's probably good. I think the problem is that there are some bad teachers out there and we have no method of getting rid of the bad teachers, and I would like to remove this tenure part of the contract and have some way of evaluating teachers and getting rid of lousy teachers. And second, I think all teachers and all government people should be mandatory that they send their children to public schools. Rodney Sandobal,Makakilo "Yes, they should have the increase and it is good that they got the increase and pay raises and it's seven school days longer, but I'm just wondering where they are getting this money from that they are giving the teachers? And if it is going to be from us, the taxpayers, I just want to say that being a teacher is like any other job. In order to get a raise, you must show improvement so I feel that if we're going to give them the raises now, they should have at least a three-year checkup to see if student grades are improving, and if not, they should maybe have a pay cutback. ... And if I'm going to pay taxes, I'm really hoping that school grades will go up, like the money was worth it. Sara Collins, St. Louis Heights "I think that the settlement was an excellent one, and I just regret greatly that it took the governor so long to deal with the issue. He had over two years to approach the teachers and work this out and he elected to wait until it became a confrontation with the strike vote. I think that's a shame and I think it shows a lot about his attitude toward public education in general in Hawaii." Terry Thompson, Kapiolani "I just think it's very interesting that the teachers' salaries are getting so near the university professors' salaries and they're really more like glorified baby sitters. They're not really expected to teach very much evidently. It's very sad. It shows what the university is worth to the state, doesn't it?" Jared Kiefer, Kailua "It's good that the teachers got a pay raise, but I think there are several areas of concern that I have that haven't been addressed in the media. The first is why we are allowed the lowest number of teaching days in the nation? You'd think that someone goes into teaching that they would want to teach students the best they can. I work in a non-union job and I have to work 12 months a year and teachers only have to work nine months a year. There could have been more detail to where their work time, both at school and at home, prorates out into how many months per year. Why is there a need for a blue-ribbon commission? Everyone has low morale in the jobs that they work. If there is a special need, how much is this going to cost us in the commission? And also, public school teachers have a low rating as far as the people I've talked to. I'm going to send my 3-year-old to private school." Elaine Myers, Windward "I believe it was blackmail. The governor's hands were tied when the teachers threatened to strike. I don't believe in striking. They say the students gained seven days of school, well today they already lost one of them. Also, I don't think the teachers should be allowed to use five of their sick leave days. We allocated that for sick leave purposes. To take it as regular, professional development or personal leave time. They have vacation time, if they want to do something like that for personal use or for personal development then they should use their vacation time, not sick leave. They're not sick."

Dave Hughson, Hawaii Kai "It is too high based on the current economic situation. Both the public and the private sector have not been given salary increases of this level for several years now. ... What the governor is proposing to give up, primarily the tax deduction for college students, now is going to make it harder for a lot of the ... low-middle income families to get a college education." Elizabeth Wells, Pearl City "I'm glad the teachers got a raise. I wasn't one of their big supporters. I did think they were already getting pretty good salary for the hours and time that they worked. I think teachers should be evaluated, and I think what we need is more control in the classrooms. Teachers ... are there to teach, not to take from the students what they sometimes have to put up with." Kenneth Fleming, Hawaii Kai "I think the settlement is fine but there is something basically hilarious and/or stupid about people who spend two weeks (negotiating) then have to stay up all night to reach a decision and a bureaucracy ... that says teachers at the deaf and blind school are essential if there's a strike but can go home if there's not a strike. Come on people, get with it." Ted Farm, Ewa Beach "I am not happy with the settlement of the teachers and the government. Government unions should not have the right to strike. What's wrong with binding arbitration. Evidently our legislators are afraid to offend this powerful block. We should consider alternatives for the next century. For instance: 1) institute charter schools; 2) institute student vouchers. HSTA needs some competition." Diane Liebes, Kaimuki "I personally believe that it's unconscionable that Hawaii's educational system is ranked number 49 out of 50 states and yet we give our educators over 4 percent raise when everybody else is getting 2 percent or being asked to take a reduction of pay due to the economy and further, how are the parents or the children gaining in the seven extra days when we give them five more free days."