Slashing state budget Consensus is building at the state Legislature to slice 5 percent or more from the state's $3.61 billion budget -- a cut severe enough to force layoffs of state workers, some lawmakers say.
could lead to layoffs
The House speaker says
the budget needs to be cut
by 5 percent or moreBy Richard Borreca
rborreca@starbulletin.comWhen he presented his budget to the Legislature in December, Gov. Ben Cayetano proposed using all of the state's $213 million in the Hawaii Hurricane Relief Fund to forestall more serious budget cuts.
Even with the relief fund money, the Cayetano budget still called for reductions of 1 percent for this year and 2 percent for the upcoming fiscal year.
Speaker of the House Calvin Say, who has repeatedly said more drastic cuts were needed, told House Democrats on Tuesday that the budget should be cut 5 percent.
"I don't mind going with the cuts. If we are going to live within our means, these cuts will have to be taken, and if the membership feels differently, you tell me how we are going to do it," Say (D, Palolo) said.
Sen. Colleen Hanabusa, vice chairwoman of the Ways and Means Committee, agreed with Say, noting that if the state does not find more money, it will have no choice.
"At this level of cuts, it may very well affect warm bodies -- a 5 percent cut on top of all the cuts the departments have already had will hurt even the major departments," said Hanabusa (D, Waianae). "These cuts will be substantial."
Before the session started last month, Cayetano had three ways to get more money.
First he said his budget could use the $213 million in hurricane relief fund money, then another $40 million would be picked up by increasing liquor taxes, and finally there would be another $40 million in increased tax revenue, coming from increasing construction spending by $900 million.
Most legislators, however, are reluctant to increase taxes in this election year, while others doubt the real effect of the construction increase and are reluctant to approve it.
And, lawmakers have been clear that they do not want to touch the hurricane fund.
"The pulse of the public has been lukewarm to using the hurricane fund," Say said. "Until they see the cuts, that is, there will be major cuts this time."
Say said his Democratic colleagues were "shocked" when he lobbied for his 5 percent cut.
Say added that he wanted the cuts to chop specific programs, not just a simple 5 percent across-the-board reduction.
"I told the caucus, instead of doing a percentage, just make the tough decision and wipe out a program. Why maintain a program at only 60 percent and it isn't enough to provide a service? Just cut 100 percent," Say said.
Sen. Sam Slom agreed.
The Hawaii Kai Republican said the budget committees should hunt for state programs that are marginal or are not performing.
"And then we should eliminate them," Slom said.
Say's proposal also won support from Republicans in the House.
Rep. Charles Djou (R, Kaneohe) called Say's proposal "a good one."
"We have lost focus. It is a result of the economy and our lack of revenues. We just don't have the economic growth," said Djou, who recommends tax cuts to stimulate the economy.
No specific programs to be cut were mentioned by legislators.
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