While Congress prepares to spend billions of dollars to stimulate the economy, Hawaii and other states are struggling to cut expenditures and meet constitutional requirements for balanced budgets. Legislators know enough not to increase state income taxes but are challenged to cut spending and increase income in all the right places - no easy task.

Predictably, diehard proponents of gambling are pushing it onto the table, but it is a losing hand. Hawaii's tourism industry has argued convincingly for decades that legalized gambling would be a deterrent to the islands' attraction to families.

In addition, Georgina Kawamura, the state's budget and finance director, points out that a state-regulated gambling program would take up to two years to establish and would require the state to hire more staff to administer it. By that time, we hope and expect the nation's financial crisis will be over.

Salary freeze

President Obama has frozen the wages of all administration staffers making more than $100,000, a symbolic gesture. By the same token, the Legislature should freeze salaries for judges, executive managers and legislators, even though it would hardly put a dent in the state's shortfall, projected at $315 million in the upcoming fiscal year.

A logical way to cut costs would be to reduce all state employees' wages, but that potential is limited. A 1 percent salary cut for all 40,000 employees would save $20.2 million or, with benefits, up to $25 million. A one-day furlough for every employee would save less than $8 million. At some point, such reductions would create hardships and should be resisted.

Increase cigarette tax

Increasing the tobacco tax would be beneficial. The 2006 Legislature approved yearly tax increases of 20 cents a pack, ending with a hike to $2.60 a pack in 2012. An additional 20 cents could raise up to $10.8 million, but doubling the tax increase in any year might only to encourage smokers to buy online.

Senate President Colleen Hanabusa has suggested that revenue from Honolulu's surcharge to the general excise tax for rail transit for one or two years be diverted to the state's budget. Such a move would be not only complicated but suspect; Hanabusa has opposed the city's elevated transit from Kapolei to Ala Moana, and the diversion of city funds could jeopardize federal funding. That avenue should be rejected.

Special funds

More sizeable and thus viable sources include certain special funds totaling $50 million that could be diverted to the state's general fund, or tax credits now given to high-technology companies, which total $112 million annually. Given the circumstances, those piles of money should not be considered off-limits.

Beyond immediate needs, the Lingle administration and Democratic legislative leaders have called for a $4 billion plan to improve roadways, but it is not part of a stimulus program; it is not to begin until the economy has begun to rebound, Gov. Linda Lingle said.

“;We can't afford to do this now,”; she said. “;Individuals can't afford it.”; The proposal would raise the gasoline tax by 10 cents a gallon and the vehicle registration fee by $20 but would save motorists money by easing congestion.