Gov pushes
building projectsLingle requests about $539 million
more for capital improvements in
the next fiscal year
Gov. Linda Lingle is asking the Legislature to spend an additional $539.3 million on construction projects and $86.8 million for operations in the state's next fiscal year.
Lingle's proposed spending increase for the second year of the state's two-year budget includes money for transportation projects, prisons, schools and social programs. The biggest chunk, $30 million, would fund Hawaii Health Systems Corp., which runs the state's community hospitals. The Legislature did not provide funding for the hospitals in the second year of the budget.
"It is a large capital improvement budget and, we think, a prudent one because of the amount of federal funds we were able to get combined with a low rate of interest. Some of these improvements have been put off for a long time," she said.
The $539.3 million is in addition to the $309 million that lawmakers approved in their last session. The $86.3 million requested for operations is 2.3 percent higher than what lawmakers approved.
Senate President Robert Bunda (D, Kaena-Wahiawa-Pupukea) said he will consider Lingle's request.
"We haven't really, seriously had (a construction spending increase) on our agenda, but we need to be open to look at it," he said.
Bunda said if the economy is improving, then such an increase may be warranted.
The economists on the state Council on Revenues, whose tax revenue predictions are used by the governor and Legislature to plan the state budget, made a slight adjustment to its September forecast yesterday. The council dropped its prediction for the current fiscal year's increase in tax revenue to 5.2 percent from 6.2 percent and increased the following year's projected revenue jump to 7.9 percent from 6.9 percent. The state's fiscal year ends June 30.
Lingle said the change in the revenue forecast will not have an effect on her supplemental budget request that was finalized before the Council on Revenues made the change.
Lingle called her proposed $86.8 million spending increase for operations prudent in light of her optimism over the economy but said her seven-year spending plan is to reduce expenditures to a level below revenues.
Bunda said what is most glaring in Lingle's request is what is not there. "There are some areas where it seems like this budget doesn't really go to the heart of the main issues of today. The main issues of today are education and drugs," he said.
Lingle's request does include school repair and maintenance for the construction of new schools. But Bunda said it does not include money to carry out Lingle's proposed education reforms.
Bunda also noted that Lingle is not asking for additional money to pay for raises of state public employee unions whose contracts are expiring.
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Highlights of Lingle's wish list
Some major proposals in Gov. Linda Lingle's supplemental budget:>> $24 million for the long-delayed north-south road to serve the proliferation of subdivisions on the Ewa Plain
>> $18.7 million to reauthorize construction of a new Maui Community Correctional Center
>> $18.5 for adult mental health programs
>> $18.2 to upgrade the state's Waimanalo Wastewater Treatment Plant
>> $14 million for improving state parks
>> $10 million for small boat harbor improvements
Source: Associated Press
