Falling tax revenue has prompted the city to freeze hiring and ban some travel.

The city's moves are similar to those other municipalities are making to deal with an economic slowdown and a decline in tourism.

For example, Maui County Mayor Charmaine Tavares has said that a decline in revenues is forcing her to ask nonprofit groups that apply for grants to reduce their requests by 10 percent.

In Honolulu, city officials also have put a stop to promotions that would result in higher-paying jobs, and to unbudgeted leases and purchases of equipment or office space.

No new positions will be created, and limits will be imposed on agencies' use of unspent funds from a previous quarter. And approval of new requests for subsidized employee parking will be curtailed.

The travel ban will not affect trips that are legally required or are for professional certification or collective-bargaining purposes.

City Budget Director Mary Pat Waterhouse said no layoffs are anticipated. But she says the city will start feeling the impact of declining home sale prices in its 2011 tax collections, and that is why it is preparing now.

“;For 2009 there is no real imminent threat, although we don't know for sure what's going to happen with the fuel tax and (tourism) tax revenue,”; Waterhouse said. “;Going into 2011, we're trying to be fiscally prudent and be on the cautionary side.”;

Waterhouse did not have cost estimates these restrictions might save.

Already, the city's gas tax revenues for the first six months of this year are down $3.6 million, compared with the same period last year, according to the state Department of Taxation. Honolulu collects 16.5 cents on each gallon sold in the city.

Moreover, assessed values on Oahu residential properties fell last year.

In July the city asked department heads to trim up to 3 percent from their 2009 budgets.

Unlike past recessions, a rebound in consumer and business spending is unlikely to result from consumers and businesses going into more debt, said Jack Suyderhoud, a professor of business economics at the University of Hawaii.

On Maui, Tavares said her administration will give nonprofit agencies that provide life-supporting services, including food and shelter, the highest priority for grants.

Tavares already has directed county departments to cut spending by 16 percent in the current fiscal year in order to transfer about $55 million to the 2010 fiscal year, which starts July 1.