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Dems question Lingle’s
withholding of state funds


Gov. Linda Lingle is withholding funding for state programs under the guise of a financial crisis just so she can appear to solve the problem later, said Democratic state lawmakers, who urged her not to "play politics" with education reform funds.

State of Hawaii Lingle has so far withheld the release of $11.4 million included in education reform legislation approved by the Democratic-controlled Legislature over the governor's veto.

"What we are asking is that we not play politics with our children's future, we not play politics with the school system. These funds should be released," said Rep. Sylvia Luke (D, Dowsett Highlands-Makiki), House vice speaker.

The funds were available for release July 1. State Budget Director Georgina Kawamura said no decisions have been made on the money. She said the administration will have a better idea whether it can release the $11.4 million and other restricted funds in September, when economists release their next state tax revenue projection.

The lawmakers are also urging Lingle to release $14.3 million they appropriated for programs to combat crystal methamphetamine use in Hawaii.

"There appears to be a pattern on the part of the administration to withhold funding for the purpose of subsequently finding an opportune time to suddenly announce that funds are in fact available for a particular program. We have seen this over and over again," said Rep. Scott Saiki (D, Moiliili-Kaimuki), House majority leader.

Saiki said the most recent example is funding for the arts. Lingle announced the availability of $625,000 in federal funds yesterday to replace $500,000 in state money she ordered withheld last month from organizations awarded grants by the State Foundation on Culture and the Arts.

In a written statement released yesterday, Lingle said her administration is "working hard to find new, innovative sources to relieve pressure on the general fund in order to meet rising expenses in the coming years. The Democrats continue to focus on just spending more money and exhibit a continuing unwillingness to maintain fiscal discipline."

Lingle ordered all her departments to cut their budgets by 1 percent and ordered other spending restrictions last month to head off an anticipated $150 million to $160 million deficit during the next two years.

Saiki said the state budget the Legislature approved earlier this year would have left the state with a $110 million balance at the end of the fiscal year.

The balance is expected to be more than $200 million because state revenues for the year that ended June 30 exceeded projections by $98 million.



State of Hawaii
www.ehawaiigov.org

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