Cayetano calls
Senate plan ‘timid’Senators prepare to vote as Cayetano
By Craig Gima
and Souki question key proposals
Star-BulletinThe co-chairwomen of the Ways and Means Committee have defended the Senate budget as "fair" after Gov. Ben Cayetano attacked the financial plan's tax cuts as "manini" and "timid."
"I'd rather not have any kind of tax reform at all if it's going to be so timid that it does not make any bold advances and also requires us to cut deeply into government services that are important," Cayetano said yesterday.
"It (the Senate budget) addresses the problems that have been identified in terms of government being too large and not able to live within its means. We've provided for continuation of direct services. We looked at areas for streamlining," said committee Co-Chairwoman Rosalyn Baker (D, Lahaina).
"We've also tried to provide through tax measures and others some stimulus to the economy so that people can see that we're more business-friendly," she said.
The verbal exchange came as the Senate prepared to pass its version of the budget today.
The House version more closely reflects the administration's position than the Senate's proposal. A conference committee will craft a final version before the end of the legislative session in three weeks.
House Speaker Joe Souki said the tax cuts under the House plan are three times greater than the Senate proposal and would provide a better economic stimulus.
The Senate version calls for $150 million to $200 million in cuts to personal income tax over three years. It does not rely on any increase in the general excise tax.
The House today was expected to pass a proposal to increase the general excise tax from 4.0 percent to 4.5 percent to partially fund a $560 million personal income tax cut over the next three years.
"If we don't hike the GET, that means we gotta find an additional $160 million, so that means major cuts, more cuts, and I don't think that's possible right now. Departments are suffering, education is hit, human services cut," Souki(D, Wailuku) said.
And both Souki and Cayetano raised questions about the Senate's proposal to offer incentives to encourage people in selected positions to retire.
"We have had already had one bad experience with an attempt to bring about early retirement. It seems to me we should proceed very, very carefully before we even dream of doing something like this. It sounds like it's going to cost a lot of money," Cayetano said.
Baker said the Senate plan targets only a limited number of employees who are facing layoffs.
"It was an employee benefit program a number of years ago. that's not the orientation this time," Baker said. "It would be less costly because the number of people in the target group is much smaller than the ones that took advantage of it several years ago."
About half of the 437 layoffs in the Senate plan are in the Department of Education's administrative and support services.
The department would decide which postions to eliminate.
Cayetano said he has always supported the idea of reducing the number of district offices on Oahu from four to two.
But the governor was critical of a Senate proposal to raise fees for the A+ after-school program and eliminate a $3.5 million state subsidy for the program. As lieutenant governor, Cayetano was a driving force in creating A+.
"It may be that there should be an increase in A+ fees, given the circumstances that we have," Cayetano said.
"But I think to push it to the point where you have a total sufficiency is not realistic, and it probably will destroy the program."
Baker noted that the Senate's budget calls for children from lower-income families to qualify for a waiver of the A+ fees.
"You'd have a program where middle, upper-middle class kids could go to, but the ones in between, the ones that do not qualify for a free lunch and that gap group, you're going to find kids dropping out," Cayetano said.
Committee Co-chairwoman Carol Fukunaga said the Senate is ready to discuss A+ and other issues with the House and the administration.
"We're trying to be judicious, and at the same time we know that the whole process of conference is compromise, collaboration, and we accept that both sides are going to have to give and take to end up with the final product, so we don't want to foreclose any options at this time," she said.
Gov. goes to bat for prison,
Star-Bulletin
asks residents of Kau for inputGov. Ben Cayetano travels to the Big Island next Monday to conduct a hearing on a proposal to build a medium security prison there and says he wants to hear from residents who normally don't testify.
Cayetano is supporting a 2,300-bed facility which would be built by private developers in Kau and leased back to the state.
Another proposal calls for expanding the minimum security Kulani Correctional Center near Hilo.
Cayetano told reporters yesterday: "I would like to hear from the people who are not usually the types to express themselves. You know, the sugar cane workers."
"I want to hear what their hopes and aspirations are and we want to be able to go in and explain to them what kind of economic benefits the prison will bring because we have put together a training program which will focus primarily on getting the Big Island people trained to take the positions."
Cayetano said he would like the farmers on the Big Island to understand how much produce the state will be buying from them to feed the prisoners.
The governor said he is concerned that opposition to a prison has centered on guards. "The majority of those who work in the prison are unmarried, honest, hard-working people like you and me and that's what I've been saying."
LEGISLATURE UPDATE
A calendar of tomorrow's hearings -- to be held at the state Capitol, 415 S. Beretania St., unless noted:
HOUSE
Transportation: Hearing on resolution encouraging the state to continue its investigation into the contamination at Honolulu Harbor, 10:30 a.m., Room 309.
SENATE
