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State of Hawaii


Gov wants
hurricane fund
used for budget


By Pat Omandam
pomandam@starbulletin.com

Gov. Ben Cayetano wants the state Legislature to tap the $213 million Hawaii Hurricane Relief Fund to help balance the proposed biennial state budget.

Cayetano, whose term ends Dec. 2, said yesterday his final budget plan to the state Legislature will use the money to avoid cuts to social and educational programs. The money would help produce a budget that only has minimal cuts to some departments, he said.


Election 2002



However, whether or not to use the fund will be up to the next governor and state Legislature.

The governor met with state budget and tax officials yesterday to go over new state revenue projections that serve as the foundation for the budget.

"This administration believes that it is really critical that the state maintain a social service safety net that's going to give adequate services to the poor, the disadvantaged, the needy in our state," Cayetano said.

"Everything I heard and seen so far from all the (gubernatorial) candidates indicate that they do not have a good grasp of, for example, the potential of attrition to reduce costs. I think all of them don't really have a grasp of the elements of the financial plan that are important, that we've put together."

The use of the hurricane fund in forming the state's $3.6 billion budget was one of the most controversial issues this past legislative session. The governor proposed using the fund, but lawmakers were split on its use.

The Legislature in April reached a last-minute compromise that allowed it to use $29 million in interest from the fund while keeping its corpus intact.

Meanwhile, the governor said his final budget plan will not account for potential collective-bargaining costs but will include pay raises already agreed upon with public worker unions.

He added the state must find money to fund new programs such as mandatory drug treatment for first-time, nonviolent offenders.

"And so whomever is elected is going to have a short period to get up to speed, and I wouldn't be surprised that after that happens that you may see the next governor do some things that ... is contradictory to what they may have promised during the election," Cayetano said. "Once you get this job, reality sets in really quick."






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