Many state government offices have been closed three Fridays a month since last summer because of the budget shortfall, but Mayor Mufi Hannemann says he will try to keep city offices open while ordering employees to take two days off monthly without pay. It is a challenging but laudable goal that the mayor is asking agencies to achieve in the 2011 fiscal year.

Hannemann announced a budget this week that he described as “;lean and balanced.”; It amounts to a 1.2 percent increase in spending over the current fiscal year but, he said, a decrease of 1.8 percent in standard expenditures. Salary increases and fringe benefits for police and firefighters and spending $14 million to prepare for next year's Asia Pacific Economic Cooperation conference has driven projected costs beyond the normal level.

Hawaii is among several states that have required their employees to take days off each month to cope with budget deficits. Gov. Linda Lingle's decision has affected 14,500 state employees under her direct supervision, resulting in the closing of several offices on furlough days.

“;We're going to try to keep everything open and maintain some level of service,”; Hannemann said. “;It may not be what you normally see, but that's the first goal.”;

Various user fees, such as bus fares, municipal golf fees and zoo admission prices, were increased last year. In the coming year, Hannemann has focused on property taxes paid by non-occupants.

The city would seek to increase revenues from the property tax because of last year's creation of a separate class for properties not inhabited by the owner. Hannemann proposes that nonoccupant homeowners be taxed at a rate of $3.72 per $1,000 of assessed value, while the homeowner-occupant rate would remain at $3.42. That would mean a yearly tax of $1,710 for owner-occupants and $1,860 for nonoccupant-homeowners for a property assessed at $500,000.

City Council Budget Chairman Nestor Garcia said he plans to work with the administration to fully understand how many property owners would be affected by the higher rates. Hannemann said the higher rate is directed at investors and other high-income property owners.

The administration should determine how many of those properties belong to apartment owners who are likely to pass on the increased tax to renters, those most vulnerable to tax increases during a recession. The mayor said the new tax bracket would result in monthly increases of 49 cents per thousand dollars evaluation for a single-family home and 25 cents for a typical condominium owner.

Overall, Hannemann's budget plan is frugal, which is necessary because of the economy. However, a closer look is needed at the new property tax of nonoccupants before the Council gives its needed approval.