Top Hawaii Headlines: Monday morning edition

There is no doubt that Hawaii has to deal with a deep budget hole, but the numbers might not be quite as devastating as thought just a few days ago.

With the possibility of mass layoffs darkening the mood, two public worker unions and a state negotiator will meet meet this morning to talk about plans to furlough state workers.

Students in Hawaii's public schools will head back to their classrooms as early as July 30 and finish school May 26 under a new calendar that shortens winter and spring breaks to lengthen summer vacation.

Hawaii's biggest identity theft case started in May 2008 as a simple report of second-degree forgery.

Hawaii County is spending at least $41.5 million on an affordable housing project that wasn't supposed to cost taxpayers a dime.

An attorney filed a civil lawsuit against the Hawaii County Council Friday in the Circuit Court, claiming the council violated the state's Sunshine Law.

There were so many homes scheduled for Friday's foreclosure auction that John Andersen started getting lost as he scanned through the list while trying to keep up with the auctioneer.

Sour economy again tops Thursday news

Economic experts gathered Wed- nesday to give their picture of how Hawaii is doing right now during this recession and they said it could be some time before the islands recover.

The state Department of Taxation reported yesterday that state revenues fell 9.4 percent, worse than the 9 percent projected by the state Council on Revenues in May.

Gov. Linda Lingle said Wednesday afternoon layoff notices to the unions could be sent out by the end of the week if she doesn't receive a formal "on the record" proposal from the four labor unions representing state workers.

In her most somber assessment of the economy yet, Gov. Linda Lingle says tax revenues continue to plummet, meaning the state has to cut an additional $57 million in spending.

A policy specialist who was laid off from the state Department of Land and Natural Resources last month maintains he was illegally fired because he repeatedly raised concerns about the agency not complying with the same environmental law that sank Hawaii Superferry.

City Prosecutor Peter Carlisle yesterday said he intends to run for mayor the next time there's a vacancy, be it 2010 or 2012.

Hawaiian Electric Co.'s customers on O'ahu will see their average monthly electric bill increase by $6.48 under a rate hike approved by the state Public Utilities Commission.

There will be no belt-tightening for the Hawaii County Council -- at least as far as members' own waistlines are concerned.

The Hawaii County Council won't be asking the Salary Commission to rescind the 22.14 percent raises it granted lawmakers a year ago.

Despite agreeing the Big Island is a safe place to live, work and visit, many of those who took a survey conducted for the Hawaii County Police Department were ambivalent about the ability of the department to serve the community's needs and resolve situations reported to police

The Maui County administration is considering another way to dispose of a luxury home built on oceanfront beach property at Kapukaula, also known as Montana Beach, in Paia.

Dozens of Kaua‘i farmers stuffed Council Chambers Wednesday afternoon, voicing their support for a proposed bill that would clear the way for farm worker housing and provide much-needed support for the agriculture industry.

Top Hawaii Headlines: Wednesday morning edition

Coffee has become big business in Hawaii. Eleven regions on five islands house some 830 farms statewide. This is great for our economy, and it's even better for our tastebuds. The diversity of farms and locations translates into a tantalizing cornucopia of experiences for our collective palate.

Hawaii Superferry has asked to abandon its two high-speed catamarans to creditors because of the significant cost of maintaining the vessels as the company moves through bankruptcy.

A showdown in court over Gov. Linda Lingle's planned furlough of thousands of government employees has been set for July 2, the day after the governor's plan is set to take effect.

Two state-employee unions asked a judge yesterday to block Gov. Linda Lingle from unilaterally ordering thousands of state workers to take three unpaid days off per month, starting in July.

The state's four public worker unions are starting a low-key public relations campaign to win support while they fight Gov. Linda Lingle's call for 36-day-a-year furloughs.

Five of the 20 students on a summer study trip to South Korea have been confirmed as having the H1N1 virus or swine flu. They remain in hospital quarantine and are being treated with Tamiflu, said a spokeswoman for the Pacific and Asian Affairs Council, which organized the trip.

A private company that state officials hope will put Hawaii on the road to the widespread use of electric vehicles expects to begin installing infrastructure here in about six months.

An executive with one of the largest architecture and planning firms worldwide said rail projects such as the one planned on Oahu will help increase business along the transit line

The number of West Hawaii residents calling for their own county increased during the last week, after County Council members from Hilo, Puna and Ka'u engineered a council leadership reorganization.

In a ceremony honoring Kaua‘i’s late mayor — a personal accolade everyone agreed he would have resisted — the state Department of Transportation on Tuesday broke ground on the $30 million Wailua Cane Haul Bridge Widening Project, naming both bridges spanning the Wailua River for Bryan J. Baptiste.

Honolulu police are looking for a local man in his 30s they said sexually assaulted a 15-year-old tourist at a Waikiki Beach on Monday.

A 14-month-old law banning tobacco use at all Hawaii County parks has gone largely unenforced because there's none or too few signs informing people of the prohibition.

The Maui County Council voted unanimously in favor of a bill Tuesday that would ban alcohol from Honokowai Beach Park in West Maui.

Top Hawaii Headlines: Monday morning edition

While it may be easy to buy potted plants at a garden center, successful gardeners know the secret to a bountiful harvest starts by selecting plants known to grow well locally.

Chef Chai Chaowasaree said Saturday that he would love to have more locally produced items, but in Honolulu they have a hard time getting them.

Hawai'i's first construction project using federal stimulus money is now under way at Kahului Airport.

They maintain telescopes on Mauna Kea, work in state laboratories and on oceanographic research ships. They are state workers, but their money comes from grants from the federal government and other sources outside the state

Local recording artist Anuhea is asking for the public's help after she had two prized guitars and a laptop stolen from her truck Sunday morning in Waikiki.

Work began on Sunday to restore the Falls of Clyde. And for the first time in recent history, the old ship flew her flag in Honolulu Harbor.

The Hawaii County Council may have an internal shakeup Tuesday that would make Emily Naeole the vice chairwoman, reassign council committee heads and reduce the number of committees from seven to five.

The owners of a Hilo apartment building haven't been receiving a tax break after all, says Hawaii County's property tax administrator. Stan Sitko admits his staff incorrectly left the Hale Haumana apartment at 1452 Kinoole St. off tax rolls, but said that oversight has been fixed and won't cost the county any money.

Maui Electric Co.’s sales, measured in kilowatt-hours, are down nearly 10 percent this year, a drop that tracks closely with declining visitor arrivals, said company President Ed Reinhardt.

The good news is that Graham McCumber, 24, one of the Big Island residents seriously affected by the rat lungworm disease, is home and is recuperating nicely. But it's a long road.

Top Hawaii Headlines: Wednesday morning edition

Honolulu Mayor Mufi Hannemann told his Cabinet and staff yesterday afternoon that he has authorized a committee to explore a potential run for governor in 2010, setting up a possible challenge to U.S. Rep. Neil Abercrombie in the Democratic primary.

At an after-work meeting with Cabinet members and supporters last night, Mayor Mufi Hannemann authorized supporters to form an exploratory committee for a run for governor in 2010.

Another ominous sign for the state budget: Revenue collections are coming in even lower than the state Council on Revenues predicted.

Honolulu City Council members meet today to take up the city's operating budget along with a host of fee increases and tax hike proposals, all aimed at making up a $50 million shortfall in the coming fiscal year.

A 22-year-old woman was sentenced yesterday to a year in prison for illegally accessing another woman's medical records and posting on a MySpace page that she had HIV

Expert: Hawaii drivers will pay more for gas this summer

Gov. Linda Lingle signed a new law on Tuesday that makes it illegal to electronically harass or stalk someone using text messages or social networking Web sites.

A discovery of skeletal human remains in the proposed midlevel road corridor likely won't stop the project from proceeding, a Hawaii County official says.

One of Hawaii County Councilwoman Emily Naeole's Keaau constituents didn't like it when she called him "whacky" in a West Hawaii Today article last year and he's filed an ethics complaint.

Three Maui artists and a father-son slack key duo from Waiehu captured the coveted Na Hoku Hanohano award, Hawaii's version of the Grammy, for their recording artistry Tuesday night.

Top Hawaii Headlines: Monday morning edition

Madam Pele's cooking up quite a show, with a cauldron of molten lava, churning within Kilauea's summit.

President Barack Obama singled out a veteran from Hawaii for special mention in his D-Day remarks at the American cemetery at Normandy's Omaha Beach.

The Surfrider Foundation's Kauai chapter is offering a reward -- as yet unspecified -- for information leading to the arrest and conviction of those responsible for the shooting death of two Hawaiian monk seals on Kauai

Kamehameha Schools will begin experimenting this fall with a merit-based pay program with hopes of eventually phasing in the system throughout its campuses.

Calls to domestic violence help lines are increasing as financial pressures brought on by the recession take a toll on Hawai'i families.

Some of Hawaii's largest nonprofit human services organizations are cutting programs, laying off staff and taking other actions to cope with significant state funding losses, raising concerns about the impact on the needy.

The Office of the Public Defender, which includes a dozen attorneys on Maui, will be shut down three Fridays each month to comply with state worker furloughs required by Gov. Linda Lingle.

Despite calls for motorcyclists and drivers of four-wheeled vehicles to safely share the road, the number of motorcycle-related fatalities in Hawai'i continues to climb.

Many Hawaii County officials pay less than the rest of us in property taxes, but it's primarily a function of how long they've lived in one spot, not preferential treatment.

A man apparently drowned and his 13-year-old daughter was injured last night when their Zodiac capsized off Keauhou in rough seas, the Hawai'i County Fire Department said.

Top Hawaii Headlines: Thursday morning edition

Tom Gill, who led the progressive wing of the Hawai'i Democratic Party at the birth of the state, contributed to the shift in Hawai'i's political landscape in the 1960s and later became a thorn in the sides of two governors from his own party, died yesterday. He was 87.

KGMB9's Political Analyst Peter Boylan talks about former Lieutenant Gov. Tom Gill, who died today.

Hawaii has one of the nation's highest rates of alcohol addiction but ranks as the state with the least drug dependence, according to a federal government survey released yesterday.

Seventy-one percent of Hawai'i residents lived in a household with Internet access in 2007, according to new data from the U.S. Census Bureau.

Disputes over state worker furloughs were no closer to being resolved yesterday as the major players took public swipes at each other.

Gov. Linda Lingle's plan to furlough public workers is a good approach, former Gov. Ben Cayetano told KITV on Wednesday

The science-versus-sacrilege debate over the proposed solar telescope near Haleakala's summit received a jump-start Wednesday night back into Maui's public discourse for the first time in nearly three years.

Students at the University of Hawai'i-Manoa may have fewer courses and degree programs to choose from as campus officials anticipate some $50 million in budget cuts per year over the next two years.

The Hawaii County Council on Tuesday rebuffed a series of amendments from its Finance Committee chairman and passed a $386.9 million operating budget that funds vacant positions and overtime, suspends the land fund and relies on the sale of Hamakua property to make ends meet.

The Hawaii County Council Tuesday moved nearly $1 million of money set aside for retirement health benefits, but never used, to a fund to pay damages in a court case related to a South Kona bypass highway

Fish coughs up golden watch

Lifeguards are recognized for saving surfer with heart condition

Honolulu Police need your help looking for a man wanted for murder in Los Angeles.

Top Hawaii Headlines: Wednesday morning edition

The skipper of the $1 billion guided-missile cruiser that ran aground near Honolulu Airport's reef runway Feb. 5 has avoided a military court-martial.

The captain of the Navy guided-missile cruiser that ran aground off the Honolulu International Airport Feb. 5 was cited for dereliction of duty and received an undisclosed punishment yesterday, the Navy announced.

Gov. Linda Lingle yesterday signed a bill into law that reduces pay for the governor, lieutenant governor, department directors, judges and state lawmakers by 5 percent and freezes their salaries through June 2011.

Labor attorneys and public officials are questioning whether Gov. Linda Lingle has the authority to furlough state employees without first negotiating the cuts with their unions.

A state senator is worried that the governor's furlough plan may put people in danger.

While Maui County's leaders said they understood the need for Gov. Linda Lingle to take action because of falling state revenue projections, they questioned Monday her decision to order three-days-per-month furloughs for state workers and reductions of free health insurance benefits for low-income adults.

A turf war between a county councilman and Mayor Billy Kenoi's administration could cost taxpayers thousands at a time when every dollar counts

A proposal authorizing Hawaii County to negotiate buying the Pahoa steam vents sailed through the County Council's Finance Committee with unanimous support Monday.

Of the 197 adults ages 21 and older who have been arrested for 291 marijuana-related offenses in Hawaii County, 106 are Caucasian, while Hawaiians were the second-most arrested ethnicity, with 45.

A Nevada-based developer is asking the state Land Use Commission for another chance to comply with reclassification requirements.

As summertime descends upon Kauai, road repairs will begin to flourish.

Top Hawaii Headlines: Monday morning edition

Hawai'i hotels continued to struggle in April, with occupancy dropping for the 14th month in a row.

Recovery is still a long way out for Hawaii's struggling hotel industry, which sustained its third month of record revenue losses in April, according to a Hawaii hotel report released today.

Education officials fear that the projected drop in state tax revenues could have a "dramatic impact" on the public school system, both in the current school year that ends in just over a week and the upcoming school year.

Gov. Linda Lingle will discuss her administration's plan to close the state budget shortfall via a live broadcast on television, radio and the Internet starting at 1 p.m. today

Global warming threatens to push endangered native Hawaiian honeycreepers closer to extinction unless the likely resulting increase in mosquitos that carry avian malaria and the pox virus is curtailed, federal scientists warn.

Futuristic aircraft may land in Hawaii

Advocates Hope Lingle Will Retain Program. Healthy Start Program Screens New Mothers

Hawaii's Department of Health will stop providing daily updates of new swine flu cases this week.

Work on the West Hawaii Civic Center is on schedule, with walls for the largest building to be erected by the end of June, Maryl Group Chief Executive Officer Mark Richards said.

Completion of the installation of the permanent bridge at Paihi is nearly finished and the County of Maui Department of Public Works is expected to reopen it on Monday.

Residents of two Kapoho subdivisions are slowly killing the pristine environment where they've chosen to live.

While the Maui Planning Commission moves forward with some of the big-picture questions in the county's general plan, residents of Waihee are looking at what the plan would mean for their small town.

Residents are urging the state to scrap its plans to develop a popular Westside Kauai state park and implement entrance fees for visitors.

Top Hawaii Headlines: Monday morning edition

Big Island losing coqui frog war. War on invasive species pau as money dries up, frog numbers explode.

The Marine Option Program and degrees and certificates in classics, music composition and dance are among 33 programs under review for possible elimination as part of a long-term strategy to streamline the budget at the University of Hawaii at Manoa

President Barack Obama will name a new judge to Hawaii's federal courts in June as U.S. District Chief Judge Helen Gillmor retires.

Despite the economic downturn, Hawai'i travel agents say sales of tours to Rome for the canonization of Father Damien in October are brisk, with hundreds of Hawai'i residents already signed up to make the 8,000-mile trip.

Despite concerns about cost and the complexity of the law, the publicly funded campaigns of Hawaii County Council candidates will go forward next year.

Like museums across the country, Bishop Museum — Hawai'i's premier historic and cultural institution — is struggling to find ways to cope with the lingering economic recession. Dwindling grants, plummeting visitor arrivals, and poor investment returns have made that process especially painful.

Crystal methamphetamine and other narcotics are showing signs of a resurgence on Maui, due to the dismal economy, according to a Maui Police Department vice officer.

April was another cruel month for real estate, but some places have weathered the storm better than others.

Roz Savage knows her biggest challenge to completing a 2,600-mile solo row from Honolulu to Tuvalu in the South Pacific will be crossing the equator.

125 fighting cocks were taken into protective custody by the Kaua‘i Humane Society after being confiscated from a cockfight in Kapa‘a by the Kaua‘i Police Department’s specialized unit. Of the total, 71 remain alive.

Hawaii banks less 'troubled'

HONOLULU -- Hawaii banks are more solid than financial institutions in most other states, according to an online comparison project created by a journalism partnership.

The analysis of bank financial statements by the Investigative Reporting Workshop and msnbc.com found nonperforming loans and foreclosed properties on bank books nationwide more than doubled last year.

But Hawaii banks, which tended to avoid many speculative loans, seem on more solid footing, according to the reports filed by the group. That’s especially true of the larger banks. (Check out your bank here.)

“While the recession has put borrowers of all kinds under increasing pressure, the Workshop's analysis makes it clear that real estate lending is causing banks the most difficulty,” said author Wendell Cochran in the report.

“At the end of 2008, nearly 80 percent of the troubled assets were connected in some way to real estate lending, even though only about 60 percent of all loans were real estate-related.”

The analysis is based on reports every bank is required to file each quarter with the Federal Deposit Insurance Corp., the federal agency that protects deposits and is part of the bank regulatory system.

Bank profits have fallen dramatically, and the troubled asset ratio has risen. The troubled asset ratio is a measure of the stress placed on banks by loans. It compares loans that are not being paid on time, and property already acquired by the bank, against the bank's capital and loan loss reserves. The national average was 9.9.

In comparison, Hawaii’s largest bank, First Hawaiian Bank, had a troubled asset ratio of just 2.5 percent and the second largest, Bank of Hawaii, had a ratio of 3.4.

House budget has deep cuts, layoffs

HONOLULU – State government is going to make do with a whole lot less, under steep budget cuts passed today by the House Finance Committee.

The committee unanimously passed a budget that goes two-thirds of the way toward making up a $1.8 billion shortfall over the biennium that starts July 1. Tax and fee increases are expected to make up the remaining one-third.

The budget situation could become even more dire tomorrow, if the Council on Revenues, as expected, forecasts a 6-percent revenue slump instead of the 3-percent that’s the basis of the current budget plan.

The budget, HB 200, cuts 374 positions, primarily employees in three programs lawmakers see as duplicative – the Disability and Communications Board, the Planning and Development Agency in the Department of Health, and the Career Kokua Program in the Department of Labor and Industrial Relations. Public affairs offices will also be hard hit.

“I will not sugar coat it or dumb down the reality of what we face,” said House Finance Chairman Marcus Oshiro, D-Wahiawa. “Drastic steps mirror a drastic situation.”

Democratic committee members, meanwhile, took advantage of the opportunity to blast Republican Gov. Linda Lingle for unilaterally saying there would not be tax increases or layoffs to deal with the sour economy.

The House budget cuts $235 million from Lingle’s $11.1 billion proposal for fiscal year 2010 and $170 million from her $11.3 billion proposal for 2011.

Lingle had promised communication, Oshiro said, yet he was blindsided by press releasees and public comments the governor made without discussing it with the Legislature first.

Committee members agreed that nothing should be taken off the table during these tough times.

“The fact of the matter, we’re chasing a $1.8 billion shortfall,” said Rep. Sharon Har, D-Royal Kunia, Makakilo, Kapolei.

Rep. Gene Ward, R-Kalama Valley, Queen’s Gate, Hawaii Kai, rushed to the governor’s defense. Communication has to be a two-way street, he said. And the Finance
Committee hasn’t been telling the governor what it’s been up to either.

Ward added that the budget situation looks grim, but it’s not as bad as it was in the 1990s, when the state had to dip deeply into its reserves to keep the state running.

“We’re going a little bit overboard too quickly,” Ward said, adding however, “everything we say today is moot until we see what the Council on Revenues does tomorrow.”

Gov. Lingle goes to Washington

Gov. Linda Lingle heads to Washing-
ton D.C., Thursday to join coll-
eagues from other states, three common-
wealths and two territories for the winter meeting of the National Governors Association.

Jobs, the economy, infrastructure and health care top the list of concerns the NGA will tackle during the three-day meeting. Lingle doesn’t plan to return to Hawaii until Friday, Feb. 27. Lt. Gov. James “Duke” Aiona will join Lingle for some of the sessions.

The itinerary includes a black-tie evening with President Obama and the First Lady on Sunday at the White House. Governors return to the White House on Monday, Feb. 23. They’ll hold meetings with Obama and members of his Cabinet on issues important to their states.

States currently are jostling for their share of the $787 billion stimulus plan that Obama is expected to sign into law this week. Hawaii may get almost $1 billion of that.

Under the plan, the states will divide $27 billion – far less than the $64 billion they said they needed – for “shovel ready” infrastructure projects. The law requires the projects to pass federal government’s scrutiny and be judged ready to go within 120 days in order to infuse jobs into the economy quickly.

Founded in 1908, the NGA is the collective voice of the nation's governors and represents governors on Capitol Hill and before the Administration.

Lingle also is scheduled to meet with Sen. Daniel Inouye and Sen. Daniel Akaka, both Democrats from Hawaii.

Lingle’s enthusiasm for energy self-sufficiency will be shared with her colleagues Sunday during a panel discussion with experts on energy infrastructure policy, including siting, regulation, financing and deployment and development of "smart grid" technologies and new pipeline systems. Panelists include Pat Wood III, principal, Wood3 Resources and Jesse Berst, managing director, GlobalSmartEnergy.com.

"Our nation's competitiveness and national security are inextricably linked to energy," Alaska Gov. Sarah Palin, chairwoman of the Natural Resources Committee, said in a statement. "Establishing an effective, sustainable energy infrastructure system will ensure that we can meet America's future energy needs."

The focus on infrastructure will be highlighted Saturday with the Miller Center Discussion and Debate about Infrastructure. Modeled on Oxford-style debates, the Miller Center National Debate series looks at issues surrounding America's role in the world, its responsibility to its citizens and the way its policies fulfill its founding principles.

The debate will focus on balancing a federal infrastructure policy with energy, environmental and economic priorities. Robert MacNeil, former co-anchor of the MacNeil/Lehrer NewsHour, will moderate. Panelists include NGA Chairman Pennsylvania Gov. Ed Rendell; California Gov. Arnold Schwarzenegger; Douglas Foy, president of DIF Enterprises; and JayEtta Hecker, senior fellow of the Bipartisan Policy Center.

The last half hour of debate will be question and answer session among all governors. The debate will be webcast live.

National group to bring bad budget news

HONOLULU -- If misery loves company, Hawaii’s got plenty of both.

A new report by the National Conference of State Legislatures says the budget gap – the difference between what states have and what they need – has moved nationally from “sobering” to “distressing.”

NCSL Executive Director William Pound will bear the bad news personally to Hawaii on Thursday, when he’ll address the House Finance Committee.

Pound is expected to update the committee on current fiscal conditions, strategies being employed to meet budget shortfalls and whether states should expect much relief from the federal bailout, known as the American Recovery and Reinvestment Act, which is currently being negotiated in Congress.

Hawaii’s three-year budget shortfall is estimated at $1.8 billion, but even that intimidating figure could become more frightening. NCSL, in its interactive budget map, shows Hawaii’s FY 2009 budget gap at $353.3 million, or 5.8 percent of the state general fund.

Even though some states have taken corrective actions, the current FY 2009 gap still stands at $47.4 billion, on top of the $40.3 billion shortfall for the 2008 FY, according to NCSL, whose budget analysts are predicting it’s going to get worse before it gets better.

"These figures are absolutely alarming, both in their magnitude and in the painful decisions they present to state lawmakers," Corina Eckl, fiscal program director for NCSL, said in a statement. "The easy budget fixes are long gone, only hard and unpopular options remain.”

Step aside, YouTube. Here comes GovTube

Step aside, YouTube. Here comes GovTube.

Gov. Linda Lingle is going to scoop herself on her most important speech of the year – her annual State of the State address to the Hawaii Legislature.

Her speech is scheduled for 10 a.m. Monday. If past years are an indication, she’ll speak to a crowded chamber, where lei-decked dignitaries and state and local officials listen intently, applauding or chuckling at the appropriate places. As in previous years, her speech will be shown live on her Web site.

Before all that, however, is a “Pre-State of the State GovTube Webcast,” set for 9 a.m. and featuring Lt. Gov. James “Duke” Aiona, as well as Transportation Director Brennon Morioka, Land and Natural Resources chairwoman Laura Thielen, Agriculture Director Sandra Lee Kunimoto, Business, Economic Development and Tourism Director Ted Liu and Tourism Liason Marsha Wienert.

Then, after Lingle’s speech, there’s an 11 a.m. hana hou performance on GovTube. This session will feature Lingle’s Senior Policy Advisor, Linda Smith, discussing the administration’s initiatives. Programs taking center stage this year are: Highways Modernization, Recreational Renaissance, Food Self-Sufficiency, Hawaii Clean Energy Initiative and the Five-Point Economic Action Plan. A lot of capital letters to live up to!

Twenty-six of the 50 state governors have already given their State of the State addresses this year, and if their words are any indication, Lingle will be echoing a common theme of hard times, government reform and pulling together.

As compiled by stateline.org, which has a library of State of the State addresses going back to 2000, here’s how some of the other governors have said it this year:

Jan. 22 speech of Alaska Gov. Sarah Palin, a Republican: “Governor Wally Hickel said he feared more than any economic depression – a depression of the spirit … If there’s a shortfall, there are options. It’ll take a cooperative spirit all around to see us through the uncertainty … And we’re all in this together.” Palin is pushing for a 7-percent budget reduction.

Jan. 13 speech of Arkansas Gov. Mike Beebe, a Democrat: “A common thread runs through our fiscal policies and sets Arkansas apart from other states, a thread spun from the wisdom of careful budgeting. By holding to our traditions of budget stabilization and conservative forecasting, we now find ourselves in an enviable position … Finding success among prosperity is admirable, but if we can capture success and continue moving Arkansas forward during a national recession, it will be a landmark of true achievement.”

Jan. 14 speech of Wyoming Gov. Dave Freudenthal's, a Democrat: “Bear in mind that we are still in remarkably good position relative to other states … We are indeed in a storm. The storm is going to affect this state and this country and those that we love, and those that we don't know. The only thing we can do is to stay focused, stick with the underlying agenda, limit our expenditures, take advantage of the opportunity to review how we're spending money and become much more focused about the future.”

Jan. 14 speech of Washington Gov. Christine Gregoire, a Democrat: “This is our chance to reform state government to make it a more nimble and relevant partner in a new state economy. … Ladies and gentlemen, we need to reboot! … Over the decades, state government has evolved — layer upon layer upon layer. But too much of what served the people well in 1940 or 1960 or 1990 does not serve the people well in the 21st century.”

Jan. 6 speech of North Dakota Gov. John Hoeven, a Republican: “Ladies and gentlemen, the state of our state is strong. Eight years ago North Dakota did not have funding in its reserve account. Together, with purpose and a plan, we not only took the steps necessary to grow and diversify our economy but also to build our financial reserves. … When I say the state of our state is strong, however, I am mindful of the fact that as many as 41 other states are facing budget deficits this year or next. Clearly, our nation's economy is in a down-cycle, and we in North Dakota are not immune from its effects.”

Jan. 15 speech of Nevada Gov. Jim Gibbons, a Republican: “The budget that I submit today reflects our current economic realities. It is $2.2 billion smaller than the one we submitted just two years ago. It is also a budget based on the money we have, without taking more from residents and businesses that are already making do with less. It is a budget that requires us to live within our means … I take no joy in submitting a budget that eliminates, reduces, or changes many things that we have grown to expect in Nevada – many things we have taken for granted when times have been good, and many programs we have added when times have been great.”

State considering closing parks

Four or five state parks would be closed and entrance fees charged at the remaining ones, under a bare-bones budget presented Thursday by the Department of Land and Natural Resources.

DLNR Chairwoman Laura Thielen said the department hadn’t “shredded down” to deciding which parks would be closed. Closing four or five parks is part of a 20-percent budget-cut scenario that might get even more draconian, based on revised economic estimates that put the state $1.8 billion short over three years.

Factors that would be considered include how easy the property would be to close off from public access, how popular it is, how much would be saved in utility costs and whether it was in a remote location that stretches parks staff too thin. No matter where the parks were, the department would take care that the impact wouldn’t’ be felt by just one community or island, she said.

Thielen, speaking to the House Finance Committee, said closing four or five parks could save $250,000 out of a $4.7 million parks and recreation budget. Hawaii's Division of State Parks maintains 53 state parks spanning 25,000 acres on five islands. About 60 percent of park-goers are tourists, compared to 40 percent locals.

“The parks are in dire straits,” Thielen said.

Her preference, however, is not shuttering parks but improving them and charging fees. Under her “Recreational Renaissance” plan, DLNR would float $240 million in bonds, fix up the parks and small boat harbors, and then charge fees for people to use them. Walk-on guests would pay $1 and cars could get in for $5, Thielen said.

“While people don’t like fee increases,” Thielen said, “I think if they see improvements and transparency and a comprehensive plan, we’re going to see we have popular support for that.”

State budget down $125 million

The Hawaii Council on Revenues today confirmed some lawmakers’ worst fears – there’s about $125 million less to spend than they thought for the budget year that's already halfway over.

The $125 million must be cut from the FY 2009 budget that ends June 30. Forecasters hope the economy will turn around in time for a 1-percent increase in the FY 2010 budget, but they aren't making any promises.

The projected 3-percent decrease in state revenues for the current FY09 budget is a drastic drop from the 0.5-percent decrease forecast just a few months ago. A percentage point equals about $35 million in revenues.

The cuts are going to be painful, hitting those who need help most. Education and entitlement programs such as those administered by the Department of Health and Department of Human Services account for a whopping 78.4 percent of the state operating budget.

Council on Revenues Chairman Paul Brewbaker will brief legislative money committees on the details of the budget downturn at 2 p.m. Tuesday in the Capitol auditorium. The Council reports its latest revenue forecast to the governor and the Legislature on June 1, Sept. 10, Jan. 10, and March 15 of each year.

Governor Linda Lingle wasn't surprised by the news.

"The Council on Revenues’ decision to lower projections is not unexpected given national and global economic conditions, as well as other external factors beyond our control that are impacting Hawaii," Lingle said in a statement. "The lower revenue projections reflect the challenges we will face as a state in the next couple of years, and underscore the need for all of us to work together. "

Hawaii is certainly not alone, according to the National Conference of State Legislatures, which says only 12 states aren’t expecting budget shortfalls.

“These budget gaps are approaching those seen in the last recession, which were the worst since World War II, and show every sign of growing larger,” NCSL Executive Director William T. Pound said in a statement. "While the data we collected from state legislative fiscal officers are pretty sobering, our discussions with legislative leaders tell us that they expect the problem to only get worse.”

(This article was edited 1/13/09 for clarification following new information).

Grim budget news, times 10

Gov. Linda Lingle has proposed a budget that assumes the economy will dip only half a percentage point during the fiscal year that ends June 30. But lawmakers said Monday they’re expecting revenue losses to be 10 times that.

The House Finance and Senate Ways and Means committees held a combined informational session where the Republican governor’s budget director, Georgina Kawamura, briefed them on the Administration’s 2009-2011 spending plan. Briefings on specific departments continue through the week.

But the Council on Revenues, when it meets Friday, could render the current spending plans obsolete. Tax collections have been down 2.6 percent during the first five months of the fiscal year, and the year could end up down 5 percent over the previous year.

That would be $225 million less on a roughly $11 billion budget, compared with the $22.5 million the governor was working with.

If so, an administration spending plan that already cuts 14 percent of discretionary spending could be forced to slice deeper – much deeper.

Democratic majority lawmakers, as expected, had plenty of questions.

But several of them focused on Lingle’s restructuring of the state’s bonds to push about $300 million in annual debt payments eight years into the future, when she will no longer be in office.

“To me, it’s somewhat misleading,” said Senate Majority Leader Gary Hooser, D-Kauii, Niihau. “We’re just extending our debt.”

“We’re deferring it; we’re not saving it,” said Senate Ways and Means Committee Chairwoman Donna Mercado Kim. “We’re leaving it to the future to pay it … So it’s not a true savings.”

The Administration will do whatever is necessary to balance the budget, said Kawamura. It’s an ongoing process, she said.

“We cannot do it by cuts alone,” Kawamura said. “It is agony for us in regards to what we have to do every day to get a balanced fiscal plan.”

Lingle presents slimmed-down budget

HONOLULU – Salaries will be frozen and Healthy Start prenatal health care and adult dental care programs abolished, but no state employee would be laid off under a reduced spending plan unveiled today by Gov. Linda Lingle.

The $11.1 billion FY 10 and $11.3 billion FY 11 operating budgets are a 3.8-percent and 3.3-percent reduction, respectively, over the base budget. But Lingle said the numbers represent a 14-percent reduction in discretionary funding over the two-year period.

Lingle also plans to tap into special funds – taking $36 million from the Deposit Beverage Container Special Fund, $9 million from the Wireless Enhanced 911 Special Fund and $40 million from the Emergency and Budget Reserve Fund – in order to balance the budget. The Legislature must agree to emergency appropriation bills in order for her to tap into those sources.

Lingle said she’d met with legislative leaders earlier in the day to present her budget proposal. The Legislature will use the budget as a base for its own deliberations, but doesn’t have to give the governor everything she wants.

“The world has changed and our fiscal situation has changed dramatically. That means it simply cannot be business as usual,” Lingle said during a news conference to announce her proposed budget.

“I believe that we will emerge stronger than we are now,” Lingle added, saying that the grim fiscal picture offers “great incentive to work together” with the Legislature in a collaborative fashion.

Lingle’s proposed cuts are in addition to cuts of $40 million proposed by the Department of Education and $13 million by the University of Hawaii System. Those two departments, combined with Department of Health and Department of Human Services, account for a whopping 78.4 percent of the state operating budget.

In addition to cutting spending and tapping into special funds, Lingle said the state would increase revenues by refinancing debt and collecting more taxes. While there would be no tax increase, Lingle said the state could collect an additional $122 million by stricter enforcement of taxes on cash transactions and tightening Act 221 investment tax credits.

A fast-tracked $3 billion public works program will also stimulate the economy and contribute to a healthy budget, Lingle said.

Lingle proposes salary freezes

HONOLULU -- Gov. Linda Lingle plans to cut $4.1 million from the state budget by freezing top officials’ salaries for the next two years.

The salary freeze would affect 208 employees, including the governor, lieutenant governor, cabinet heads and deputies and justices of the Hawaii Supreme Court and all state court judges.

The administration employees are scheduled for salary hikes of 5 percent on July 1, 2009 and 3.5 percent on July 1, 2010. The justices and judges are scheduled for salary increases of 10 percent in 2009 and 3.5 percent in 2010.

Lingle will propose a bill in the 2009 legislative session to accomplish the salary freezes. The bill covers the positions recommended for increases in 2007 by the Commission on Salaries. The increases will go into effect automatically unless the Legislature takes action.

The bill also would suspend a 3.5-percent increase scheduled for all 76 state legislators for January 1, 2010. Additionally, Lingle is asking the Legislature to forgo the 36 percent ($12,808) salary increases lawmakers are scheduled to receive on Jan. 1, 2009. This would save an additional $486,704 in fiscal year 2009.

“…It is important that state leaders also make sacrifices and lead by example,” Lingle said in a statement. “At a time when many Hawaii residents are losing their jobs or seeing their salaries frozen or reduced, it would be inappropriate for state leaders to accept pay raises.”