Fixed costs drove this state legislative session. Fixed costs make up 40%
of new state budgetBy Pat Omandam
and Crystal Kua
Star-BulletinLawmakers took care of those costs by approving a two-year, $14.5 billion state budget yesterday, more than the last biennium budget, but less than that proposed by Gov. Ben Cayetano last January.
House Budget Chairman Dwight Takamine (D, Hilo) said he understands the size and cost of government is a serious concern for Hawaii residents, but mandatory state payments forced the new biennium budget to increase roughly 12 percent in 2002 and 16 percent in 2003.
"I make no attempt to disguise or sugar-coat this necessary increase," Takamine said.
Calling it the "people's budget," state lawmakers said mandatory obligations, including payment of the debt service -- or the principal and interest -- on bonds issued to pay for the construction of schools, parks, university buildings and other public facilities.
For fiscal year 2002, the debt service payment is $417 million; for 2003, it is nearly $478 million, Takamine said on the House floor yesterday during debate on the state budget bill.
Other financial obligations facing the state in the next two years include $546 million in payments to the Employees Retirement System, $538 million in payments to the Public Employees' Health Fund and $698 million to comply with the Felix consent decree.
"The nondiscretionary items we have just discussed will consume in the neighborhood of $1.4 billion, or 40 percent, of the total general fund budget," Takamine said.
"For fiscal year 2003, nondiscretionary items will eat up about $1.5 billion, or 42 percent, of general funds appropriated," he said.
But while the House and Senate majorities praised the budget, some House Republicans opposed it because it continues to increase every two years.
Rep. Jim Rath (R, North Kona) likened the budget to an old car in need of constant repair. The Legislature keeps throwing money at the problem but it is not getting the job done, he said.
Rep. Joe Gomes (R, Waimanalo) added there were more drafts of a vicious-dog bill than there were of the state budget and suggested more time be spent working on the budget.
Nevertheless, most lawmakers defended the budget. Rep. Michael Kahikina (D, Nanakuli), who heads the House Human Services Committee, said the budget helps those who need it the most. "This is the people's budget. Where do you cut?" Kahikina asked.
Meanwhile, legislative approval also came last night to a bill that many charter school supporters lobbied against.
Proponents of the bill said it would streamline the charter approval process, while critics said the measure is a step backward.
In the House, the vote went along party lines, 32 to 19, with Democrats voting in favor and Republicans voting against. House Republicans tried a couple different ways to kill the bill, including an unsuccessful bid to send the measure back to committee.
Minority Leader Galen Fox (R, Waikiki) said the bill should be voted down because that's what charter school supporters want.
House Education Committee Chairman Ken Ito (D, Kaneohe) said that those involved in charter schools were part of the process in crafting the bill.
The Senate voted 16 to 9 in favor of the charter bill with some Democrats joining Republicans in voting "no."
"This bill as drafted falls significantly short," Sen. Avery Chumbley (D, East Maui) said.
Chumbley said there were several deficiencies including giving preference given to existing schools and programs for charter approval instead of start-up programs.
"If you look at what's happened in the charter movement, the majority of them are start-ups particularly on the Big Island and those on Maui," Chumbley said.
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