Budget battle
brewing in
the Senate

A committee OKs using $55 million
from the hurricane relief fund

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By Crystal Kua
ckua@starbulletin.com

A close vote and heated debate yesterday in a state Senate committee over taking a portion of the Hawaii Hurricane Relief Fund to balance the state budget could signal stormy weather ahead as it heads to the Senate floor.

By an 8-6 vote, the Senate Ways and Means Committee approved using $55 million from the hurricane fund yesterday, designating the money to pay for education programs that were slated for the chopping block.

"We are required to balance the budget, and we've tried to put up for your vote things that we feel we need to do as far as trying to balance the budget because of the revenue shortfall that we do have," said Senate Ways and Means Chairman Brian Taniguchi (D, Manoa).

"It's not pretty, but we do emphasize the fact that we'd like to fund education ... and that given the kind of circumstances we have, just looking at all the numbers, we do have to make some really tough decisions."

The state is facing a projected $300 million revenue shortfall.

To help offset the shortfall, the committee also approved yesterday a supplemental budget bill with $73 million in cuts and a 5-cents-per-cigarette or $1-per-pack increase in the tobacco tax that would generate an additional $8 million in revenue.

Gov. Ben Cayetano's budget proposal uses all of the $213 million from the hurricane fund to balance the budget. The House version of the budget takes $100 million from the fund but makes deeper cuts than the governor.

Those in favor of keeping the fund intact say the money should be used in case another hurricane hits.

"It's very difficult to go against my constituents," said Sen. Donna Kim (D, Aiea), who is against using the hurricane funds.

"If we're going to be asking for cuts across the board, then we should really look at cutting."

Sen. Jonathan Chun (D, Kauai), who supported using hurricane funds, said there is a need to look at all avenues in seeking additional funds to balance the budget, including looking at the hurricane relief fund.

"If the members don't feel they can support this, then I would ask the members then to specifically state where they're going to cut. Tell me what libraries we're going to close, tell me what schools we're going to stop funding, tell me what classes we're going to have cut, tell me what UH program has to go," Chun said. "If you can't tell me that, tell me where you're going to find the money."

But Chun's remark brought a sharp response from Sen. Sam Slom (R, Hawaii Kai), who said there are other alternatives that are not being considered by the Democratic majority. Slom opposed using hurricane funds.

"It is not a question of either taking these funds or closing the libraries or taking these funds or throwing children out on the streets," Slom said.

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