Governor, lawmakers weigh budget scenarios

Associated Press

State worker layoffs or furloughs may not be needed to cope with a projected $150 million shortfall in state revenues, legislative leaders said yesterday.

That's if lawmakers agree to tap into the $213 million Hurricane Relief Fund and state spending can be cut by 1 to 3 percent, said Senate President Robert Bunda and House Speaker Calvin Say.

Bunda, D-22nd (Wahiawa, Waialua, Sunset Beach), and Say, D-18th (Palolo, St. Louis, Kaimuki), met with Gov. Ben Cayetano for more than an hour late yesterday to discuss the financial situation.

The state's Council on Revenues last week revised downward its tax revenue forecast with the state's economic downturn after the terrorist attacks.

Cayetano said no conclusions had been reached and there was no discussion of calling another special session of the Legislature.

"I just kind of gave them a little briefing on the different financial scenarios we may propose, the different kinds of things we can do to try and balance the budget," the governor said.

Say said that with the state's departments already operating at a bare minimum after years of budget cuts during nearly a decade of slow economic growth, a new round of cuts might have to include the Department of Education, which until now has been immune to cuts.

Despite the $150 million projected shortfall, the state ended its last fiscal year June 30, 2000, with a $349 million cash balance, although much of that is earmarked for public employee pay raises.