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Hope grows for public
By Bruce Dunford
worker pay raises
Associated PressThe state government should be collecting about $90 million more in taxes this fiscal year than had been expected, according to the state Council on Revenues.
That would give leeway for possible pay raises for state workers, something Gov. Ben Cayetano is willing to consider after first taking care of social programs.
The panel of economists meets next week to revise its official state revenue forecast, which the governor and the Legislature are required to follow to keep the state's budget balanced.
In March, the council predicted zero growth in general fund tax revenues this fiscal year. But those revenues are up 2.5 percent through the first 10 months.
Council Chairman Michael Sklarz said yesterday that the increase comes from the state's expanding economy and profits made in the booming stock market and in real estate sales.
There also have been increases in visitor spending, construction spending, personal income and inflation -- all of which would generate higher tax revenues, he said.
The capital gains through stock investments and real estate, along with people seeing their equity portfolios increasing, led to greater consumer confidence.
"Because people feel wealthier they go out and spend," Sklarz said.
The council likely will peg its growth forecast for the current fiscal year at about 3 percent, which would be about $90 million more than lawmakers believed they had in the $6.2 billion state budget approved early this month, Sklarz said.
After being stonewalled by an administration and Legislature pleading poverty over the past several years, the public employee unions likely will view the revenue growth as justification for pay raises.
Earlier this week, Cayetano said he may consider pay raises for teachers and other state workers if state revenue projections increase. He said he was waiting to see the council's forecast.
However, "giving pay raises for the sake of pay raises is not productive," Cayetano said. "We would like to see if we give pay raises that there be some return in terms of making the system more efficient and productive."
"Even with the teachers, we'd like to see some accountability," he said.
Cayetano said he wants to hear from Schools Superintendent Paul LeMahieu on how to make sure there is some way to measure performance of teachers, schools and students.
Then he wants recommendations for improvement.
The reforms are tied to the raises, Cayetano said. "There's no sense in us giving money if it's not going to improve the education process," he said.
But first, his administration would look at other state needs in social services and other programs, Cayetano said.
"And whatever surplus we have ... would we be able to afford a pay raise of 'X' percent, across the board. That's the way we look at it."
The state's general Web page: http://www.state.hi.us
