Newswatch
Standard & Poor's, after having Hawaii on a negative credit watch for the past three months, Friday dropped the state's credit rating two levels from double-A to single-A+ because of the state's rising debt levels, deteriorating financial performance and weak revenue estimates.
It also concluded that the state's financial position could be weakened by hundreds of millions of dollars by litigation over the allocation of revenues from ceded lands that once were controlled by the Hawaiian monarchy.
The downgrade means the state likely will have to pay millions of additional dollars in higher interest rates when it sells bonds.
Next week, the state is putting $590 million of general obligation bonds on the market.
S&P's move also means that the debt service in the proposed budget for the upcoming fiscal biennium - now at $883.3 million - could increase, said House Finance Chairman Calvin Say (D, Palolo).
Aiea, Aina Haina, Liliha, Manoa and Wahiawa libraries would close Aug. 1 under state librarian Bart Kane's plan to meet a proposed 8 percent budget cut for all state agencies. Fifty library workers would lose their jobs.
Kane said the five libraries targeted are in areas with other libraries close by. But both he and Board of Education Chairwoman Karen Knudsen said the proposed closures are still cause for sadness.
"I think when you start closing libraries, libraries are at the heart of the community, and it's very painful to even discuss," Knudsen said.
The Senate Ways and Means Committee recommended departments find ways to cut 8 percent from their budgets in light of declining state revenue projections.
There is no health threat, the company said today, explaining it voluntarily withdrew the products after a consumer reported late yesterday that some milk "did not taste right."
Affected are Island Fresh white fluid milk products coded or dated April 5 and chocolate milk products coded or dated April 3. They were delivered to Oahu stores Friday.
The strange flavor was caused by temperature variations in the raw milk produced by a dairy farmer, Meadow Gold said. A rare enzyme reaction occurred, the company said.
The milk is sold under various brand labels besides Meadow Gold, including Times, Holland Dutch, Valley Fair, Western Family, Viva and DairyLand.