Capitol View

By Richard Borreca

Wednesday, September 2, 1998


State’s budget, not
values, is the big issue

WILL the real issue of the 1998 campaign for governor please stand up?

When Gov. Ben Cayetano says the issue isn't the economy, he's right. But, mostly he's wrong. The big issue isn't values. The really big issue is the state's budget.

The issue has at least 20,000 parts -- the state workers waiting for a pay raise.

The workers want more money. They feel that they are owed it because the state promised them a pay raise.

They are a tad upset because the Legislature this year didn't pay them.

Yes, we honor our commitments, the Legislature said, but the public workers were told that it was either lay off workers or give a promised pay raise.

"The state simply cannot afford these increases at the expense of eliminating more positions and programs," a legislative committee reported in delivering the bad news.

In one form or another, Cayetano and his Republican opponent, Maui Mayor Linda Lingle, have agreed to funding that pay raise next year.

Cayetano, who picked up the backing of the state's two biggest public employee unions, HGEA and UPW, came out first saying he was vowing to make the payment.

Lingle also came on board.

The ticket to ride the union label isn't cheap: $70 million.

Here's why this is such a big issue: The money isn't in the budget, the money isn't in anybody's calculations for next year's budget and there are real questions whether the state can pay it.

Earl Anzai, the state budget director, in an attack on Lingle, said that even after covering the pay raises the state will still have a surplus of $163 million.

But other budget experts, including Lowell Kalapa, executive director of the independent Tax Foundation of Hawaii, says the budget has become such a playground, that no one can really tell how much money is available.

"The most cutting criticism is nobody knows for sure what is the state's financial picture, because of all these little riders," Kalapa said.

There is a lot more hanging on the debit side of the column.

Cayetano, for instance, offered the public schools $11 million earlier this year. That money wasn't approved by the Legislature, it wasn't authorized by anyone in any form of authority and it can't be paid until next year's Legislature meets.

Another little item that is not funded, according to state Senate Ways and Means Co-chairwoman Roz Baker, is the seven extra days of pay for the teachers.

If you want to keep on counting, there are some really big bills coming down the road.

FIRST, Cayetano served up a billion-dollar construction budget to prime the pump. That didn't happen, but it brought along Walter Kupau, the Carpenter's Union head, who endorsed Cayetano. In two years the state will have to start paying the principal on that billion dollars, according to Kalapa. That is going to take money away from the state for years.

Then there are new welfare costs coming two years from now. When the federal government overhauled welfare, limiting payments to a total of five years and dropping many immigrant groups, Hawaii said it would pick up the slack. That bill comes due with the arrival of the millennium.

When candidates come calling, remember: The only issue is the state budget and the only question is "How are you going to pay your bills?"



Richard Borreca reports on Hawaii's politics every Wednesday.
He can be reached by e-mail at rborreca@pixi.com




Text Site Directory:
[News] [Business] [Features] [Sports] [Editorial] [Do It Electric!]
[Classified Ads] [Search] [Subscribe] [Info] [Letter to Editor]
[Stylebook] [Feedback]



© 1998 Honolulu Star-Bulletin
http://starbulletin.com