Senators say new labor
deals muddle budgetA report complains that Lingle
has not funded pay increases
Gov. Linda Lingle's budget is unbalanced because of the six-year, $124 million agreement with the University of Hawaii Professional Assembly, according to the Senate Ways and Means Committee.
The Senate approved its version of the state's $3.6 billion operating budget yesterday with a stern warning that Lingle's version of the budget does not show how it will pay for obligations to the UH faculty.
A spokesman for the Lingle administration said yesterday that budget staffers were aware of the criticism, but they had not yet prepared a reaction.
A briefing paper given to GOP legislators earlier this week by the Lingle administration showed that the UHPA settlement would create a $17.6 million deficit in fiscal year 2006-07 and $22.7 million in fiscal year 2007-08.
The committee report attached to the Senate version of the budget complains that Lingle does not show any way to fund the pay raises except for "growing the economy."
"The governor's current general-fund financial plan does not account for the new costs of the UHPA contract," the report states.
"If the contract costs are factored into the existing plan, it would exceed expected revenues. Your committee believes this to be a violation of Article VII, Section 7, of the Hawaii state Constitution," the report concludes.
That section of the Constitution says that if "appropriations exceeds estimated revenues due to proposed expenditures, this fact shall be made public, including the reasons therefore."
At the same time, the Hawaii Government Employees Association has been awarded a pay raise that will cost $33 million in fiscal year 2005 but add an extra $53.9 million every year after that.
Yesterday, Sen. Brian Taniguchi (D, Moiliili-Manoa), Ways and Means Committee chairman, said he is designing a budget that will incorporate the UH pay raises and also a raise for the teachers and blue-collar workers, based on the same 8 percent over two years given to the HGEA.
"With both settlements, her budget does not balance, so we have to take a look at it," Taniguchi said. "At this point we are trying to make room for UHPA and HGEA, and that is why we have to make other cuts."
To get the extra money, Taniguchi's budget plan includes taking nearly $10 million from the state rainy-day fund and $50 million from state special funds. It also would cut about 300 vacant positions in various state departments.
But Taniguchi warned that the Senate would be free to either accept or reject the $124 million UHPA settlement.
His committee's report noted that because the contract is for six years, it promises money that has not yet been appropriated.
"This means that the fifth and sixth years of the contract, the years containing the highest salary increases, must be funded with appropriations requested by a governor not yet elected," the report read.
J.N. Musto, UHPA executive director, said in response that his union considers the contract to be legally binding for all six years.
"We believe it is legal and they can enter into such a contract that binds the Legislature beyond two years and that it is enforceable," Musto said.
Democratic legislators are quick to point out that Lingle settled with the UHPA, which has endorsed her in her last two elections, but has been critical of the arbitrated HGEA settlement. The HGEA, with 24,000 members, supported Lingle's Democratic opponent, former Lt. Gov. Mazie Hirono.