StarBulletin.com

Lingle's economic agenda stays alive at Legislature


By

POSTED: Sunday, February 14, 2010

Many of Gov. Linda Lingle's proposals to boost the economy, make government more efficient and reform the education system have cleared their first hurdles in the Legislature, while her proposals to reduce government employee benefits have been shut down.

The state Legislature gave initial approval to bills that aim to create hotel construction jobs through tax credits, start a budget-balancing stabilization fund for use in future economic downturns and make the schools superintendent answer to the governor.

Measures had to reach their final committees in each chamber by Friday to stay alive.

“;So far we're very pleased,”; said Linda Smith, the governor's senior policy adviser. “;We have not seen as much movement as we would like to see with bills that would change how the state treats its state employees. Everything else is moving along.”;

The majority Democratic Legislature killed the Republican governor's proposals to suspend payment of life insurance premiums for state and county personnel, discontinue state reimbursements for Medicare costs for spouses of retirees and pay health-care costs for retirees not covered by Medicare in the same manner as those covered by Medicare.

;

The bills are intended to save the state up to $21 million as it faces a $1.2 billion projected budget shortfall.

Lingle also had wanted new laws allowing the state and counties to separately negotiate with public employee unions and require that binding arbitration settlements consider the state's fiscal condition.

Lingle's administration will ask Senate President Colleen Hanabusa and House Speaker Calvin Say to waive the deadline rules to revive these bills, Smith said.

Lingle suggested about a dozen specific proposals in her State of the State address last month. Education accountability proposals in particular are advancing because Democrats have signed on. Some of Lingle's initiatives survived in similar bills sponsored under legislators' names instead of hers.

“;It's a bipartisan recognition that the current arrangements aren't working,”; Smith said.

For example, both parties are eager to snatch $100 million in hotel tax money from the counties for use by the state.

Other Lingle proposals are still alive but face an uncertain future.

The hotel construction tax credit would cost $50 million a year through 2012 and could put 23,000 people to work, Lingle has said. A separate income tax credit for businesses that hire residents to full-time positions received a positive vote in the House on Friday.

A ban on construction of new fossil-fuel burning power plants faces obstacles in the House Energy and Environmental Protection Committee.

Tax exemptions for renewable energy projects and bond financing for homeowner renewable energy investments will get further consideration.