‘No money to spare’

The current revised state budge
already is out of date, according
to budget chief

By Helen Altonn
Star-Bulletin

A frugal $111.6 million supplemental budget request sent to state legislators from Gov. Ben Cayetano is already outdated, Budget and Finance Director Earl Anzai said today.

"There's no money to spare," he said, explaining "only things that are absolutely necessary or will generate money" can be funded.

Even the bare-bones proposals submitted to the Legislature yesterday by the governor are "out of date already," Anzai said.

Cayetano warned in his message to legislators that the government services must be limited. "This will require a radical change in current public expectations, and it may very well change the face of society."

House leaders were meeting this morning in Speaker Joe Souki's office over Cayetano's budget request. Senate Ways and Means Co-Chairwoman Carol Fukunaga could not be immediately reached for comment and the panel's other co-chairwoman, Sen. Rosalyn Baker, was in Texas.

The supplemental budget request was put together before the Council on Revenues last week lowered its state growth projections from 2.5 percent to 1 percent, Anzai said.

The council will meet again Dec. 30 to finalize its projections, he said, noting the initial forecasts were only for fiscal 1998. "They didn't even talk about fiscal 1999 and beyond."

The current fiscal year ends June 30, 1998.

Based on the council's previous statements, Anzai said, the budget for the next fiscal year, 1998-1999, will have to be revised even more.

Lagging retail sales, uncertainty over the Asian economy and worries about construction spending led to the lower revenue projections. Some council members said they think the state's actual growth rate should be lower than 1 percent, although one member thought the rate should be higher.

"What it means," Anzai said, "is we will have to go into the budget already approved and restrict, or the Legislature will have to cut the budget for 1999."

The supplemental request in legislators' hands would add $111.6 million in government operating money for fiscal 1998-99.

Cayetano's proposal seeks $47 million in general funds.

It covers $61.9 million in additional authorizations offset by $14.9 million in savings. The savings include $9.3 million on debt service payments, and $3.3 million on state contributions to the federal Social Security program.

Most of the funding would go for education ($26 million for the Department of Education and public libraries, and $2 million to the University of Hawaii); health services ($21.8 million); and public safety ($8.8 million). Specific general fund requests include:

Felix vs. Waihee: 161 positions and $7 million for the Department of Education and $16.4 million to the Department of Health to comply with the provisions of the federal consent decree mandating improved mental health services for children and adolescents.

Department of Education: 85 positions and $18.1 million for supplies, equipment and additional staff because of enrollment and workload increases.

Department of Accounting and General Services: $700,000 for school bus transportation due to extended school year.

Department of Health: $2.8 million to match federal funds for Medicaid; $1.97 million to cover shortfalls in the emergency medical services program; $251,075 to cover unanticipated equipment and electrical costs for the state laboratory.

Department of Public Safety: 72.5 positions and $2.6 million for additional operating costs at Waiawa, Maui and Oahu Correctional center and the Women's Community Correctional Center; $376,309 for food supplies; $324,114 for a new correctional information system; and $5.4 million to transfer another 300 inmates to mainland prisons.

Department of Business, Economic Development and Tourism: $1 million to help fund the Pro Bowl.

Attorney General: $1 million for redesigning a computerized criminal background check system; and seven positions and $177,456 for collection of overpayments made by the Human Services Department.

Department of Human Resources Development: $1.7 million for a state computerized management system.

Department of Land and Natural Resources: $258,000 for Miconia eradication on Maui; $300,000 for the Forestry and Communities Initiative.

University of Hawaii: $1.7 million for student information system.

---

Star-Bulletin writer Mike Yuen contributed to this report.