House alters Lingle budget

$54 million for public schools
is restored in place of $20 million
for UH scholarships

House lawmakers are cutting $20 million for new scholarships proposed by Gov. Linda Lingle for University of Hawaii students.

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Instead, legislators are restoring about $54 million for public school programs in Lingle's $8.9 billion proposed budget.

Finance Committee staff members said the $20 million cut for scholarships is not expected to affect programs or services at the university, adding that needy students can still qualify for tuition waivers.

House Finance Chairman Dwight Takamine said that in studying the administration's financial plan (House Bill 100), lawmakers found areas of "unmet need" primarily in funding for public education and anti-drug programs.

Georgina Kawamura, Lingle's budget director, said that while the administration disagrees with the cuts, it recognizes that the Legislature is doing its duty in scrutinizing the funding proposals.

"We will disagree on some things, and we will agree on some things," Kawamura said. "We will just have to wait and see how this process continues and then see how we come out at the end."

House lawmakers are putting back about $5.7 million for student transportation programs and $9 million for food services. About $1 million is being restored for charter schools with the rest going toward programs and faculty for special-needs students.

"As we listen to our constituents ... the message is loud and clear that if there's any area of investment in our future, it's in our children," said Takamine (D, Hawi-Hilo).

To restore funds for the education programs, lawmakers trimmed the one-time appropriation for university scholarships and cut about $3.2 million in each year set aside for 109 state jobs that have been vacant since Dec. 31, 2003.

An additional $3 million was found by doubling a 1 percent restriction on discretionary spending -- a measure already instituted by Lingle -- for most state agencies and by assuming lower interest rates on state debt.

Other "little tweaks here and there" were made to shift money toward legislative priorities, Takamine said.

Those priorities include about $7 million for community anti-drug programs and substance abuse treatment services for students and adults.

An additional $10 million is being set aside to counties for road repair and maintenance projects.

Takamine noted that the state's two-year financial plan is still in the early stages and could need further revision after next week's forecast by the state Council on Revenues.

"That will determine our bottom line," he said. "I think we did the best we could just to maintain fiscal responsibility at this point.

"Should the council provide additional resources, then certainly we could perhaps more fully fund, say, the Department of Education or the university programs."

A copy of the House Finance Committee's revision was not immediately available.

Takamine has said any tax relief, such as raising the standard deduction or adjusting income tax brackets, will depend on the council's forecast being higher than previous estimates.