The state House has increased the amount of money it wants to take from 54 state special and revolving funds to $120 million, which is more in line with the Senate's proposed $123.3 million sweep to help balance the state budget. Raids of special funds
debated in LegislatureThe House and Senate negotiate
Funds targeted for budget use
over how to balance the budgetBy Pat Omandam
pomandam@starbulletin.comBut both sides remain tens of millions of dollars apart on how much to take from the dwelling unit revolving fund, the account the state uses to build affordable housing like the Villages of Kapolei.
The House had originally proposed taking $12 million from the $90 million housing fund, but increased it to $23 million in House-Senate conference committee talks yesterday.
The Senate had proposed taking $24 million, but indicated Senate President Robert Bunda (D, Wahiawa) now wants between $40 million and $45 million from the account.
"So, at this point, I think we can agree on most of the items, maybe except that one, and I need an opportunity to speak to the Senate president on that," Senate Ways and Means Chairman Brian Taniguchi (D, Manoa) told House conferees yesterday.
Conferees are trying to find about $240 million in revenues and about $60 million in cuts to make up for a $300 million-plus shortfall in the state budget.
Gov. Ben Cayetano has repeatedly argued against taking money from certain state special funds, including affordable housing, and argued for using money from the controversial $213 million Hawaii Hurricane Relief Fund.
"What's happened is that poor people, services that are important to affordable housing, and those kinds of things, are going to have suffered because people in the Legislature are concerned about the political ramifications of using the Hawaii Hurricane Relief Fund," Cayetano said last week.
The fund facing the largest raid is the state Department of Commerce & Consumer Affair's compliance resolution fund, which may lose between $33 million and $34 million.
The compliance fund, which has an estimated balance of $51 million, is basically the operating fund for the department, which is self-sufficient and does not require annual general fund appropriations from the Legislature.
Department officials have opposed using the money to balance the budget.
Meanwhile, House Finance Chairman Dwight Takamine (D, Hilo) said the House agreed to add $17.6 million from special funds as a good-faith gesture to speed up agreement on the revenue side of the budget.
The House budget passed earlier this session makes up the shortfall with money from special funds and the hurricane fund, as well as through increased state taxes, such as the liquor tax, and higher fees for marriages, deaths and births, among other things.
The House has also proposed 2 percent across-the-board cuts for all state departments and agencies, which is what the governor had proposed in his executive budget.
Meanwhile, part of the original Senate financial plan relied on $55 million from the hurricane fund. But last week, 16 of 25 senators pledged not to use any money from the fund.
Instead, Senate President Bunda proposed using money set aside but not yet spent for various state contracts. Cayetano said there was about $44 million in that fund, but all of it was accounted for in terms of contracts that have yet to be paid.
Bunda, however, said yesterday he believes there is about $16 million the state could use from it. Originally, he thought there was $90 million available.
Along with that, senators now want to take $10 million from the state's rainy-day fund, $10 million from the state Department of Commerce & Consumer Affair's business registration compliance fund, and $20 million from the recent settlement between the state and the local oil companies to end an alleged gas price-fixing lawsuit filed by the state.
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Here are the names of and the proposed amounts to be taken from some of the 54 state special and revolving funds to help balance the state budget: Funds targeted
for budget use
>> Compliance resolution fund: $33 million >> Hawaii Capital Loan revolving fund: $7 million >> Stadium special fund: $4 million >> Animal quarantine special fund: $1 million >> State parking revolving fund: $3 million >> Driver education and training fund: $700,000 >> Judiciary computer system special fund: $500,000 >> State disaster revolving loan fund: $250,000 >> Cigarette tax stamp enforcement special fund: $200,000
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