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Wednesday, December 5, 2001



State of Hawaii


DOE prepares
to slash budget

The superintendent says $7 million
in cuts will hurt students


By Crystal Kua
ckua@starbulletin.com

The state Department of Education is considering worker furloughs and other options "detrimental" to public school students in response to the governor's recommendation for $7 million in budget cuts.

In a memo to the Board of Education, interim schools Superintendent Pat Hamamoto said the unanticipated restrictions "will thrust the department into utilizing options that will be detrimental to the education of our students as well as to impact upon the health and safety of the learning environment."

After the state's post-Sept. 11 economic downturn, Gov. Ben Cayetano recommended that the department cut $7 million from its budget for the current fiscal year as part of a statewide effort to save $158 million in anticipated lost tax revenues.

The department also was asked to find ways to reduce $14 million from next fiscal year's budget, and it will have to do without $9 million from any supplemental budget for next year. The current fiscal year ends June 30.

BOE leaders and Hamamoto could not be reached for comment late yesterday, but the board will be discussing the recommended cuts and other budget items at its meeting on Molokai tomorrow.

State Budget Director Neal Miyahira informed all state departments in a Nov. 21 memo that "spending must be curtailed" after the Council of Revenues projected lower state revenues.

"There will be many complex issues to be resolved and difficult decisions to be made in order to ensure the well-being of our people and our state during these trying times," Miyahira said in his memo.

As a result, the recommendations for the DOE represent 1 percent, or $7 million, of the $700 million in discretionary funding in the current $1.2 billion budget and 2 percent, or $14 million, of discretionary funding from next year's $1.3 billion budget, along with $9 million less in any supplemental budget.

Details on what might be cut were unavailable.

Budget and Finance also is recommending adjusting the number of allocated teacher and educational assistant positions for next year downward for a $12 million savings, the DOE says.

But the DOE says it is already strapped financially.

The department is facing an $8.4 million shortfall for the current fiscal year due to costs related to the Felix consent decree to improve the state's services for special needs students, according to Hamamoto's memo.

The department, however, agreed to cover any shortfall by "leveraging all sources of funds" instead of asking the Legislature for emergency funding next session, Hamamoto said.

The unanticipated restrictions for this year alone will hurt students, she said.

"In the past, we have imposed cuts away from the classroom to preserve direct services to pupils at the expense of school/system infrastructure support," Hamamoto said in her memo.

"However, at this time, the department must consider options that compromise the delivery of services to include but not limited to employee furloughs, program restrictions and deletions, reduction in per pupil funding and non-delivery of basic infrastructure support."

Hamamoto said the department already implemented "austerity measures" on Nov. 23 that included a hiring freeze on all state and district office vacant positions, curtailing out-of-state and interisland travel, and limiting personal services contracts.

According to Miyahira's memo, the governor will meet with all state departments next week to discuss the recommended restrictions and cuts. The governor is expected to make a final decision on Dec. 13.



State of Hawaii


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