


"We're not talking about continued effectiveness or continued service to the public," Cayetano said yesterday. "We're talking about our departments responding as to where 8 percent would be cut. That's all we did. It doesn't mean if we cut 8 percent it wouldn't hurt the departments."
Cayetano's remarks followed the disclosure by Senate Ways and Means Co-Chairwoman Lehua Fernandes Salling (D, Kapaa) that she and committee members held closed-door meetings with department heads over the weekend.
She said more than half of the state's 17 departments have developed plans to slash their budgets by 8 percent, despite Cayetano's insistence last week that such severe cuts are "unacceptable" in light of previous reductions.
"I am encouraged that this is a doable thing," said Fernandes Salling.
She also said the projected $275.5 million revenue shortfall for the fiscal biennium that begins July 1 may be made up with less than the 8 percent in cuts. But she'd rather err on the high side, Fernandes Salling said.
Cayetano said Seiji Naya, director of the Department of Business, Economic Development and Tourism, has a less alarming budget shortfall projection.
But Cayetano said he won't disclose what it is until Naya has had a chance to discuss it with Paul Brewbaker, chairman of the Council on Revenues, which drastically reduced its tax revenue forecast, leading to the projected $275.5 million loss.

The counties say they will get less under an administration-sponsored proposal backed by the House.
Yesterday, three Senate panels - Intergovernmental Affairs, Economic Development and Judiciary - gutted a House bill that mirrored the administration's position. The committees then inserted the contents of a Senate bill that was more acceptable to the counties.
The legislative action came 21/2 hours after neighborhood board leaders held a news conference to protest the House measure, which would cap the counties' room tax revenue at the 1994-95 level of $78.6 million while using the money that exceeded the cap to help pay for the state convention center.
The House proposal, sponsored by the administration, would give the counties alternative revenue sources - public service company taxes of more than 4 percent and a portion of uncontested traffic fines and forfeitures.
The Senate wants to have the state's share of the tax, instead of the counties', deposited into the convention center capital and operations special fund for the next two fiscal years.

Lifeguards reported five people had been stung by 10:15 a.m. yesterday, and the city Department of Parks and Recreation issued rainchecks to Hanauma Bay visitors.


No one was injured in the 11:30 p.m. holdup at 526 N. School St.
The suspects allegedly fled in a Cadillac. Officers chased but lost sight of the car on the freeway.
Three men - two who apparently are partners in Island Fresh Fruits, which occupies two units in the building - remained until officers arrived. They were reluctant to reveal the identities of others at the game, police said. BMWs and Jaguars were allegedly seen leaving the building as officers arrived.
Two of the suspects wearing black ski masks were similar in build. One was about 5-foot-8 to 6 feet tall, about 200 to 220 pounds and armed with a shotgun. The other was 5-foot-9, 200 pounds and carrying a pistol. The third male, wearing a white ski mask, was 5-foot-5, 150 pounds and armed with a knife.
Social gambling is allowed in Hawaii as long as no player or entity profits from any source other than personal winnings.

In making the announcement yesterday, police said the case has been reclassified as a suicide.
The boy was home alone when his parents returned to their Kaloko house and found him barely conscious with the crossbow bolt in his head and the crossbow lying beside him, police said.