CINDY ELLEN RUSSELL / CRUSSELL@STARBULLETIN.COM Republican Linda Lingle addressed students and faculty Thursday at the University of Hawaii, saying that if she became governor, she would not hire more government workers for jobs that could be given to private businesses.

Lingle wouldn’t add
state workers

Adding more workers endangers
the state retirement system,
she tells a UH gathering

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By Richard Borreca
rborreca@starbulletin.com

Republican candidate for governor Linda Lingle says it is "irresponsible" to hire any new government workers for jobs that could be given to private businesses.

While saying she would not lay off any existing state workers, Lingle said that if she becomes governor, hiring new state workers would put the state retirement system in jeopardy.

Appearing Thursday before about 80 students and faculty members at the University of Hawaii's Manoa campus, Lingle said: "I don't want to cut any existing persons. But I can tell you, if you are a leader in government and you hire more government workers to do maintenance or groundskeeping or computer programming, you are just being irresponsible.

"You are jeopardizing the retirement system of every existing worker of this state. Every new employee brought into the government is further jeopardizing the system."

Lingle noted that the state Legislature has taken a portion of the state Employees' Retirement System's excess profits and is looking at delaying a future payment. The money is needed to help balance the current version of the state budget, which has a $300 million deficit.

Lingle said that hiring extra people would put an extra strain on the retirement system by adding to the retirement pool and future expenses.

"Anyone in government should really be focusing on making sure they are not bringing in a lot of new government workers for jobs that could clearly be done by the private sector. The retirement system should be for existing workers, and we should be looking out for their retirement," Lingle said.

David Shimabukuro, ERS administrator, declined comment.

Turning to the state budget, Lingle called Hawaii the "Enron of public finance," adding that she wants to cut taxes and close the state's hundreds of special funds.

She said Hawaii's budget, like the now bankrupt Houston-based energy company, has stuffed money away in special funds and accounts so that the Legislature is unable to know how much money the state actually has.

"It is completely off the books, and it has grown to such a large amount that half of the operating budget of the state is held in special funds," Lingle said.

Lingle said that unless the special funds are marked for a special purpose, such as transportation or housing, she would be in favor of closing the funds, putting the money back into the general fund and letting the administration and Legislature decide how to spend the money.

She said she also supports halting the state excise tax on medical expenses.

"I want to eliminate that tax more than anything else," Lingle said. "I don't think we should pay for the privilege of being sick or injured. We are the only state that taxes Medicaid and Medicare. I want to eliminate that."

Questioned about how she would be able to balance the budget while cutting taxes and also expanding the UH budget, Lingle said she would rely on cutting other parts of the budget.

Also, the state could expect more spending if taxes were lowered, she said.

"The money doesn't evaporate," Lingle said. "If we reduce taxes and let families keep it, they will spend it on something else."