House sends Despite objections from one-fifth of its membership, the state House has approved and sent to the state Senate a supplemental $3.5 billion general fund budget for fiscal year 2003.
$3.5 billion budget
to Senate
One-fifth of the membership voted
How it breaks down
"no" after nearly 2 hours of debateBy Pat Omandam
pomandam@starbulletin.comThe bill passed by a vote of 35-10 yesterday after nearly two hours of debate.
"What is missing is the will, not the ability, to do what's right," complained Democrat Ed Case (D, Manoa), who opposed the bill because of its long-term effect on the state economy.
House Bill 1800, House Draft 1, is the centerpiece of the House majority's financial plan to balance a state budget that faces a $315 million revenue shortfall during this current biennium of 2001-2003.
The proposed budget is "grounded in reality" and drastically cuts spending while focusing on essential core services, mostly in education and health, said Dwight Takamine (D, South Hilo), House Finance Committee chairman.
"I honestly wish I could stand here today and present a budget measure that fully funds all of our core programs, pays all of our bills, satisfies every court mandate and invests heavily in the future," Takamine said. "But ... House Bill 1800, House Draft 1, cannot do all of that."
The measure cuts the budget for the next fiscal year by $144 million. But another House bill, now in the Senate, would take $100 million from the Hawaii Hurricane Relief Fund and restore $78 million of those cuts while putting another $22 million in the state general fund. The net result would be $66 million in cuts to balance the budget.
Compounding the state's financial problems are increases in fixed costs between this and next fiscal year. About $81.9 million in state payments are due next year to the state retirement fund, the state health fund and debt service -- all of which lead to an overall total budget increase of $113.3 million next fiscal year from last year's approved budget of $3.63 billion.
The House plan hopes to balance these rising costs through proposed 4 percent across-the-board departmental budget cuts, the use of $103 million from state special funds and by revenue generated from a variety of bills this session that raise taxes and fees.
The growth in government, however, was a target for Republicans and a few Democrats. Critics like Charles Djou (R, Kaneohe), House minority floor leader, said the increase in the biennium budget as well as the nearly 1,500 new positions to the state work force are part of the Democrats' financial "shell game" that is leading the state the wrong way.
"This is not movement in the right direction," he said.
Most of the 1,451 new jobs are related to the Felix consent decree, the agreement to comply with federal law in providing services to special-needs children. The state is facing a final compliance deadline of March 31 and is mandated to have these positions filled.
Even so, Case warned the House's actions on the entire state budget will mean tougher fiscal times for the 2003 legislative and executive branches. These one-time transfers to maintain general fund expenses will not leave future legislators many options, he said.
"We are knowingly handing off to our successors a terrible situation for the out-years, with higher expenses, lower revenues and no options," Case said. "But, hey, that's their job, not ours."
Meanwhile, the state budget appropriates $340 million in projects, which is nearly two-thirds less than the $900 million in capital improvement projects proposed by Gov. Ben Cayetano.
An additional $156 million was provided for public-school repair and maintenance, as well as $44 million for repairs and upgrades at the University of Hawaii system.
Here's a look at some of the programs that would have funding cut in the next fiscal year under the supplemental budget bill approved yesterday by the House: How the budget
breaks downAssociated Press
>> $3.6 million for the state's Computer Education Program
>> $3.5 million for the A+ after-school care program
>> $3 million for the Developmental Disabilities Home and Community-based Medicaid Waiver program
>> $1.7 million for Assistance to the Aged, Blind and Disabled
>> $1.1 million for Summer School programs
>> $1 million for financial assistance payments to the temporarily disabled
Source: House Finance Committee
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