Gov. Ben Cayetano called the Senate's plan to balance the state's budget "a terrible mistake." Senate spending
plan is assailedThe governor says unused contract
funds are already spoken forBy Richard Borreca
rborreca@starbulletin.comCayetano told reporters yesterday that the money that Senate President Robert Bunda plans to use to balance the budget is already pledged for existing state contracts.
"I think that now he is aware that whoever was advising him on this matter had made a terrible mistake," Cayetano said. "If you talk about anyone being fired, the senator's staff person who advised him should be given his or her walking papers."
Bunda, who has pushed the new budget-balancing plan instead of tapping into the state Hurricane Relief Fund, shot back that the Senate has touched a nerve.
"What we are trying to do is find all of the alternatives. Apparently, we have struck a nerve with the governor on this issue," Bunda said. "I would imagine the executive is scrambling. If he is fighting back like this, I'm going to defend our guys by saying we are being as responsible as we can."
Bunda's support, however, is not solid.
Sen. Colleen Hanabusa, Ways and Means Committee vice chairwoman, asked why, if the "unexpended encumbrance" -- which is now pegged at $45 million -- has existed in past budgets, hasn't anyone spotted it before?
"I can't believe that all the former Ways and Means chairmen in years past wouldn't have caught it," she said. "I certainly haven't seen any silver bullets yet."
Neal Miyahira, state budget director, who has been meeting with both Bunda and Hanabusa, is telling senators that if the hurricane funds are not used to balance the budget, there could be problems with the state budget as soon as the 2003 fiscal year.
Miyahira is warning that if the state's current tax collections hold steady, the state will lose an extra $45 million this year. The budget is currently running a $300 million deficit.
Miyahira said the state runs the risk of a deficit if it does not balance the budget by cutting funding, using the hurricane funds and dipping into special funds.
Cayetano worries that the debate over the hurricane money is actually hurting programs and schools because the Legislature is cutting programs to protect a fund that is not needed.
"What is important is that poor people, services that are important to affordable housing, are going to suffer because people in the Legislature are concerned about political ramifications of using the hurricane fund," Cayetano said.
Hanabusa agreed, saying social service groups are starting to look at a preliminary version of the state budget and are shocked to find that money for the agencies has been reduced.
"They are asking us, 'What happened to the bill and the money?'" she said. "There is going to be a backlash if the money isn't there."
Bunda, however, said his research into the state budget has already identified $45 million in money that was not being spent, and he thinks it can be used instead of the hurricane fund.
Star-Bulletin reporters Crystal Kua and
Pat Omandam contributed to this report.
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