Senate GOP says Democrats
failing to fix budget crisis

3 Republicans claim the ruling
party stifles economic growth

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By Richard Borreca
rborreca@starbulletin.com

Republicans in the Senate are complaining that the Legislature is not looking hard enough to find the money to solve the state's budget problems.

The state Senate's three Republicans jokingly say if Hawaii's looming state budget deficit is a wake-up call for the Legislature, "someone has hit the snooze alarm."

Sens. Sam Slom (Hawaii Kai), Bob Hogue (Kaneohe) and Fred Hemmings (Kailua) held a news conference yesterday in the state Capitol to complain that Democratic leaders are spending too much, not considering cutting programs and doing nothing to encourage economic growth.

"The state management has kept Hawaii in a black hole for over a decade," Hemmings charged.

He called the budget passed by the state House last week "deceptive."

According to the GOP, the state lists $94 million in salary expenses for unfilled positions.

Some of the positions have been vacant for eight years, according to Slom, who said the Legislature should take the vacant jobs off the books.

But Sen. Brian Taniguchi, chairman of the Ways and Means Committee, and Sen. Colleen Hanabusa, vice chairwoman, said nearly half of the money for salaries is earmarked by the Health and Education departments to be used for special services for the Felix consent decree.

"The teacher assessments are prepaid, even though the people aren't in the system," said Hanabusa (D, Waianae).

Taniguchi said his committee is considering taking money out of state special funds and revolving funds generating a surplus. The Senate also will have to consider using some of the state hurricane relief fund.

The House version of the budget uses $100 million of the $213 million hurricane fund to balance the budget. The House passed a $3.4 billion annual budget.

But Hogue criticized the Democrats' plan, saying the Legislature cannot legally raid the hurricane fund, and it should expect to be sued if the money is not returned to taxpayers or kept in the fund.

According to existing state law, the only provision for taking money out of the fund is to dissolve it and put the money in the state treasury.

Taniguchi said the Senate is considering using portions of the hurricane fund, but added that "we are trying to move around the hurricane fund."

He said the Senate is considering raising the state liquor tax, and the House is looking at increasing the tax on tobacco for additional revenue.

But Taniguchi cautioned that the budget still is not balanced, even with the adjustments.

Gov. Ben Cayetano sent the Legislature a budget that calls for spending $900 million in construction, raiding the entire hurricane fund, increasing liquor and tobacco taxes and cutting spending by 3 percent to balance the budget.

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