Pay hike prompts cry
of ‘Holy mackerel’
Honolulu and Hawaii counties say they cannot afford the Hawaii Government Employees Association award that totals about 8 percent in pay raises by the end of a two-year contract.
"Holy mackerel!" blurted out Hawaii County Council Chairman Jimmy Arakaki. "That's a lot of moola."
Hawaii County budgets in advance for pay increases, but nothing as large as that, Arakaki said. "I don't think we cranked that into our budget -- nothing near this," he said. "I guess we've got to go looking for money."
Mayor Harry Kim said the award means an additional $1.9 million in 2004-05, but he is more worried about the compounding effect of the raises in later years. "Absolutely, I wish it was lower," he said. "But am I shocked? No, I'm not shocked."
Kim had already proposed a record $247 million budget for 2004-05, which includes a gas tax increase of 6 cents per gallon to pay for road repairs.
Kim said he would not oppose the arbitrator's award.
Similar settlements in the range of 10.5 percent for police and firefighters gave warning that such an increase was coming, he said.
Mayor Jeremy Harris, who did not budget for the raises in his proposed $1.22 billion operating budget beginning July 1, continued with his position that pay raises are out of the question for the financially strapped city.
Raises for 2,911 HGEA-represented employees will cost the city $6.2 million the next fiscal year.
Councilman Charles Djou agreed. "The city is broke. We can't afford pay raises."
But others on the City Council said that employees deserve a raise, but paying for it will be difficult.
"The pay raises seem reasonable compared to the raises won by the other unions. However, I need to study the situation more closely, especially to see what the proposals will be to fund those raises," said Councilman Gary Okino.
"I've always said that I feel like a union that gets binding arbitration ought to get it. I just don't know how we can afford it," Councilwoman Barbara Marshall said.
Budget Chairwoman Ann Kobayashi said again yesterday that if the other County Councils approve the award, Honolulu will likely follow suit.
Maui County Mayor Alan Arakawa said he cannot say whether the county has enough money to pay for the increases, because he has not seen the proposed contract.
Arakawa said from the outset that his administration can afford an increase, but he noted that Maui County was in better financial shape than other counties in Hawaii.
Kauai Mayor Bryan Baptiste had no comment on the arbitrated agreement, and his office said the county Finance Department would require several days to figure out the price tag.
Kauai County is expecting a 29 percent increase in property tax revenues next year, following an 18 percent hike this year.
Star-Bulletin reporters Crystal Kua, Rod Thompson, Gary T. Kubota and Anthony Sommer contributed to this report.
