Lingle asks Gov. Linda Lingle's administration is proposing a "no-growth" state budget of $7.46 billion for the next fiscal year.
$7.46 billion for
‘no-growth’ budget
She aims to free more money
by eliminating obsolete special fundsBy Richard Borreca
rborreca@starbulletin.comGeorgina Kawamura, state budget director, briefed the Senate Ways and Means Committee this morning at the state Capitol on the new Republican administration spending plan.
Kawamura said the state will repeal "selected special funds that have outlived their purpose or have no justifiable purpose."
By cutting the special funds, Kawamura said, the state will be able to transfer the money into the general funds. Lingle has been critical of the past state spending plans that tucked millions away in special funds that could be used only for specific purposes.
The state budget is based on the latest predictions by the Council of Revenues, which forecasts a 6.1-percent growth in state taxes and revenues, provided there is no war between America and Iraq or any long-term major strikes.
"Our budgetary focus is on maintaining fiscal discipline and strengthening the economy in order to generate recurring revenue sources to meet recurring expenses," Kawamura told the lawmakers this morning.
She cautions legislators, however, that "emergency program requirements in health and human services" plus other state appropriations will cause the budget to exceed the state appropriation ceiling by $52.9 million or 1.4 percent.
But, the total two-year budget does not exceed the spending ceiling. State officials have calculated the state budget ceiling on the two year budget plan.
In her prepared remarks, Kawamura said the Lingle administration does not intend to use the state's Hurricane Relief fund to help balance the budget, as former Gov. Ben Cayetano had planned.
"We believe that to restore trust in government, this obligation must be fulfilled and the intent of the fund must remain intact," Kawamura said.
The new state budget does include cuts of $39.7 million by imposing a 5-percent spending freeze. Kawamura said the administration intends to carry the spending freeze into the next fiscal year, which she estimates will save the state $35 million.
"By instituting a freeze on the filling of position vacancies in selected areas, we expect to minimize and control growth in all but essential areas of government service," Kawamura said.
The administration will also cut the present and "future capital improvement project authorizations to reduce the cost of debt that must be accommodated within current and future budgets."
Next week Lingle is expected to unveil a new tax proposal, which Kawamura said would cost the state $30 million. Lingle has previously said she wanted to drop or at least reduce the state's taxes on food, drugs and medical services.
The state also plans to cut the next two fiscal year budgets by $17.5 million.
State of Hawaii
