HSTA Sees Reason

In the first breakthrough of a labor stalemate, the Lingle administration and the Hawai'i State Teachers Association announced a tentative agreement yesterday on a two-year contract that includes furloughs to help close the state's budget deficit.

Finally! Some reason... it seems quite apparent to me that Lingle is only trying to help by inducing furloughs rather than having to have layoffs. Aparently Wil Okabe also sees this. Furloughs are better than layoffs. If only HGEA could understand this, there might not be such as clash between the Union and the Governor. If only schools could be open on those Fridays, families also wouldn't be impacted, but everyone has to do their share.

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Health Insurance in Hawaii Too Costly

Hawai'i's health insurance premiums grew an estimated 3.7 times faster than worker earnings during the past decade...the study by Families USA said family health care premiums jumped 94.2 percent during the period, while median earnings grew at a slower 25.7 percent pace.

--Honolulu Advertiser

Health care in Hawaii has never been one of the cheapest things in the world... but the government should try to make it one. The health of its citizens should be a moderate priority for government. We need to not only attract doctors to the islands but ensure that they will remain here.

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Museums Reduce Budget, Can't Find Funds

As the economy limps along, Hawai'i's museums are finding it tougher to meet their financial needs. They've slashed budgets by cutting hours, closing collections and laying off staff. They've slashed budgets by cutting hours, closing collections and laying off staff.

--Honolulu Advertiser

Well, everyone is affected by the slowing economy somehow and I guess it was a matter of time until it reached museums and other institutions. It's kind of disappointing that museums have to cut hours, employees , and collections. Hopefully, the museums will survive through these economic tribulations and re-expand their budget.

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Hawaiian Airlines Vote for Strike

Hawaiian Airlines pilots have voted to authorize a strike, but a walkout is not imminent. The Hawaiian Airlines branch of the Air Line Pilots Association said today that 98 percent of those pilots who cast ballots authorized the union leadership to call a strike.

--Honolulu Advertiser

This is quite interesting. They say that there has never been a strike in the history of the Airlines, but the pilots have shown that they could end all that. Because it was just a vote, this will not affect the airlines operations unless the pilots "deem it necessary". I see most of these pilots as respectable men and women, and I say we should submit to their demands only to a certain point.

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Libraries Need Donations to Prevent Closures

Faced with a $6 million budget cut, the state public library system will be asking library users, corporations and foundations to donate whatever they can to prevent major cutbacks at the state's 51 libraries. The fundraising effort, "Keep Your Library Open!," is set to be announced this morning by the Hawaii State Public Library System and the Friends of the Library of Hawai'i. Each entity will conduct its own fundraising drive, and the combined effort is intended to ensure that no library will be closed permanently because of projected budget shortfalls.

--Honolulu Advertiser

Finally, some intelligent ideas... If Hawaii's citizens truly want the libraries to stay open, they will donate in some form or another. Libraries are like the polish to a good education; it really allows students to shine. The plan is to raise $3 million by getting 1 million library users to donate $3 dollars each. $3 per person is a reasonable amount, and I have faith in the people of hawaii that they will get this done.

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$1 Billion Assets on "Hold"

For the past 18 months the state has been unable to use $1 billion it sank into supposedly highly liquid, short-term investments because of a collapse in trading of the securities. No one knows for certain when the state will get its money out of so-called auction-rate securities, and an auditor recently required the state to revalue its holdings at $114 million less than what it paid for the investments.

--Honolulu Advertiser

The administrator of the Financial Services Division, Scott Kami, says there is still more than enough money for projects and the state's bills. It's very disturbing that the state invested a total of $4.5 billion, $1.1 of which was invested in these "auction-rate" securities. That's nearly one-fourth of all investments.

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Governor Returns to Cuts, Layoffs

The state had made an offer to the Hawai'i Government Employees Association [HGEA] that involved 24 furlough days this fiscal year, starting in October, and 24 days in the next fiscal year. The state also agreed to stop most of the 1,100 layoffs the governor has set to start in September. The governor said a similar offer was made to the United Public Workers but that the union did not respond.

--Honolulu Advertiser

HGEA countered the state's plan with 18 furlough days this fiscal year and 12 the next. The union also demands that the state cover 60% of health care premiums, even as costs continue to rise. Lingle describes it as "completely unacceptable" and has returned to cuts and layoffs. It seems to me like a simple choice: Either have a job, get at least some income, and have full benefits, or don't have a job at all. Unions, pick wisely, or hundreds of workers could be laid off.

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HGEA Negotiates Over Furloughs

Over the past several days, the Lingle Administration has been working with the Hawaii Government Employees Association (HGEA) to develop a plan to furlough state workers and stop the over 1,000 layoffs Lingle had threatened:

The Lingle administration has offered the union 24 furlough days this fiscal year starting in October and 24 days next fiscal year, along with a halt to layoffs except for staff at Kulani Correctional Facility on the Big Island, which is being closed.

--Honolulu Advertiser

Once the next fiscal year starts, workers will furlough two days per month, down from the three originally proposed. However, the deal includes that HGEA drop its legal charges against furloughs and complaint against the layoff plan. The state will even consider reducing furlough days and increasing health care premiums next March, but I doubt that will happen.

Looks to me like a win-win situation, so I say the unions should go for it!

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Economic Situation, Not As Bad?

The improved outlook is due to inflation being more subdued than state economists had anticipated, while Hawai'i's biggest economic engine — tourism — is expected to be worse than before and result in increased job losses.

As shown in the forecast above, inflation is quite low, but that's countered by a 6% drop in visitor arrivals. The economy is still in recession, but the recession is not as severe as it was this time last year. As the state's chief economist of the Department of Business puts it, the economy is a "mixed picture". Big hits are expected to employment rates as well as visitor spending and the tourism industry, a major part of Hawaii's economy. Hawaii is still better off than most states however.

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Hawaii "Better Off" Than Most States

Nationwide, stung by the drop in revenue collections because of the recession, states had to close a $142.6 billion shortfall in budgets for fiscal year 2010, according to a new report by the National Conference of State Legislatures. Eight states missed budget deadlines on July 1 and scrambled to pay state workers and bills while rushing to patch holes that may grow larger if the economy does not improve.

--Honolulu Advertiser

Governor Linda Lingle suggested that other states' economic situation may be far worse than Hawaii's. For example, in California, state workers are furloughing two days per month and Gov. Schwarzenegger is asking for a third furlough day. We should just be happy and remember all that we have is a blessing.

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Rail Cost Estimate Higher

The cost estimate of the Honolulu elevated mass-transit public rail system has risen from the previously estimated $5.17 billion to the current estimate of $5.29 billion. It is a result of high-than-expected inflation, which was 2.3% higher than expected. Still, Honolulu Mayor Mufi Hannemann says that this is considerably less than the $5.4 billion presented in last year's Mayoral ballot. I personally won't use the transit system... I would have placed the question on the ballot if voters would use the transit system, rather than if they supported it.

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Funding Approved for Rail and Housing

The 2010 Transportation and Housing & Urban Development appropriations bill approved today funds the U.S. Departments of Transportation and Housing and Urban Development.

The U.S House approved today a bill that will fund Native Hawaiian housing and the Honolulu Rail Transit project. The bill, officially called the 2010 Transportation and Housing & Urban Development appropriations bill, grants Hawaii $17 million. $12 million will fund housing block grants, $1 million for a Native Hawaiian Loan fund, and $4 million to the rail project. Hopefully this will further stimulate the economy and help to close the budget deficit.

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Lingle Offers Compromise

Sources familiar with the talks, speaking on condition of anonymity because the negotiations are confidential, said the administration's offer involves a 7 percent pay cut and about 18 furlough days a year for two years. The administration's proposal is in response to a union offer last week of a 5 percent pay cut. The combination pay cut and 1 1/2 furlough days a month would save the state roughly the same amount of money as Gov. Linda Lingle's initial goal of three furlough days a month.

--Honolulu Advertiser

Governor Linda Lingle made an offer yesterday to the three major labor unions (HGEA, UHPA, HSTA) that would comprise of both furloughs and paycuts, as she still stands behind her belief against layoffs. The plan is estimated to save the state the same amount of money that the governor's original three furlough days per month would have saved. To me, it's a "no-brainer", as one of my dear friends use to say. It's either that or a mass layoff of over 1,000 workers.

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Council Canditates Against Tax Hike

Nearly all 14 candidates for the Honolulu City Council's 5th District seat say they're unhappy with the council's decision to raise property tax rates this year and would have taken steps to avoid it.

--Honolulu Advertiser

The upcoming election that will decide who will take the late Duke Bainum's seat shows great promise for the next several years. With all but one candidate against tax increases (George Waialeale suggested tax hikes be part of the solution), most blame the current economic situation (including tax rates and fees) on those in office; "Greed, corruption, ego and the fiscal irresponsibility of Honolulu's elected officials caused our current quandary," says candidate Jaques Sims. Many candidates have relations within the state's political community. I just hope that, like a few short elections, this won't be a popularity contest. Let's just make something good of Duke Bainum's death.

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Lingle's List of Layoffs

The Lingle administration would not disclose how many workers are targeted, but Gov. Linda Lingle has said she may have to lay off 2,500 workers under her direct control because of the state's budget deficit. Workers in several departments -- including Agriculture, Health, Human Services, Labor and Industrial Relations, and Business, Economic Development and Tourism -- reported being notified.

--Honolulu Avertiser

The list of workers Lingle and her staff will lay off will be released tomorrow. However, it has been estimated that over 2,500 workers might be let go in order to close the state's budget deficit. The informality of the situation - Lingle telling workers about the layoffs before considering the unions - has raised some eyebrows, including Randy Pierra, executive director of HGEA, described Lingle's announcement as "shameless". The unions should have accepted the furlough plan. Now they have to deal with layoffs.

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Lingle Leading?

With labor talks between the state and the public worker unions still stalled, Gov. Linda Lingle put some pressure on the unions yesterday by announcing that her Cabinet would be taking a pay cut equal to two furlough days a month through two years.

--Honolulu Star Bulletin

Pressure? The Governor played this one poorly; first she released her proposal to the media before even sitting down with the unions, then, only after she loses the court ruling, she begins to make sacrifices herself. Lingle then wants to make it clear that she is leading by example. Yeah, leading after losing. She also said later that because of the growing budget deficit, she would not let any money be released for any bills that were overrode in the last legislation.

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Food Funds and Renewable Energy Vetoed

Governor Linda Lingle vetoed the so-called barrel tax bill which would increase the price of oil about 2-3 cents per gallon. The money raised from the tax would in turn fund progress and research of renewable energy as well as fund food security. The bill was opposed by the fragile airline industry, claimed Senator Colleen Hanabusa. This is a bad move however, because renewable energy is the key to maintain sustainability on these most isolated islands in the world we live on. Food security should also be a main priority as we are thousands of miles away from any major landmass. Nice job, Governor, we're making (no) progress!

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Budget Cuts = No Fishing?

With just two days until the scheduled Saturday opening of this year's catfish season at Nu'uanu Freshwater Fish Refuge, the state Department of Land and Natural Resources (DLNR) has not decided whether it can afford to open the popular spot this year because of state budget cut.

--Honolulu Advertiser

Many people were looking forward to this year's session so many people applied for licenses, but "Now we might not have anyone," says Brian Kimate, owner of a fishing supply store. Fishing is also a great activity for families. The recent cut in budget for the DLNR may bring an end to freshwater fishing in Hawaii. A solution might lay in volunteers from the Hawaii Freshwater Fishing Association.

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Unions Offer 5% Cut

In what all sides described as progress, public-sector labor unions yesterday offered to take a 5 percent pay cut to help close the state's budget deficit, far less than what Gov. Linda Lingle has wanted but a sign that state workers are willing to sacrifice.

--Honolulu Advertiser

Hawaii Unions offered a 5% cut in pay in labor talks yesterday Governor Linda Lingle attended saying afterward the state would consider the unions' proposals. The 5% cut is a big plummet from the three furlough days a month (equal to about 13% cut) Lingle proposed last month. Although the budget deficit is still quite large, this is the first step toward closing the gap.

However, one of the Unions' other proposals of taking money from the Hurrican relief fund and temporarily increasing the general excise tax. This is not a good solution because a) El Nino is this year and b) this could cripple the already fragile private sector. Honolulu Mayor Mufi Hannemann says the Governor has "broken the stalemate," but that means someone is going to lose.

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New Budget Deficit Estimate

Gov. Linda Lingle's administration now estimates the state's deficit through the next two years totals as little as $744 million, far less than the $900 million gap she warned the state could face Wednesday.

--Honolulu Star Bulletin

The Governor released today the new budget deficit estimate, $744 million, which was far less than the previous $900 million. The Governor released this information shortly after talks with the labor unions ended. I, like the Governor, oppose layoffs and prefer furloughs, however Lingle has began to compose a list of public workers that would be laid-off if her furlough plan is not implemented.

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