State struggles with budget

By Johnny Brannon
Advertiser Staff Writer

The state budget approved by the Senate yesterday eliminated all extra money for unused vacation time owed to political appointees who expect to be replaced after a new governor is elected in November.

House lawmakers had already slashed the request by $1.1 million, and the Senate version of the budget wiped out the general fund portion completely.

That could force the governor's office and 17 other departments to cut spending elsewhere to cover the cost, ask officials to take vacation time off soon, or leave some positions vacant later.

But some or all of the money could be restored later by the House-Senate conference committee, which will meet later this month to reconcile differences between bills approved by each body.

Senate Ways and Means Committee Chairman Brian Taniguchi, D-11th (McCully, Mo'ili'ili, Manoa), said earlier that some budget line items were deleted because it remained unclear whether lawmakers would approve tapping new or restricted money sources to alleviate looming budget woes.

Most state employees can accrue up to 90 vacation days and cash them out when they leave employment, along with 21 more days earned in their final year on the job.

Union officials say such benefits help attract quality workers, but critics say they inflate the cost of government.

The state faces a larger-than-usual payout this year because so many employees will leave at once, many of whom are department heads and others with the highest-paying government jobs.

And as a result of the economic slump that followed the Sept. 11 attacks, the state expects to have $300 million less to spend this year and next than officials had expected.

Controversial proposals to bridge that gap include spending up to $100 million from the state's hurricane relief fund and raising taxes on liquor and tobacco.

Reach Johnny Brannon at jbrannon@honoluluadvertiser.com or 525-8070.