Case pledges financial reform of state budget

By Lynda Arakawa
Advertiser Capitol Bureau

Democratic gubernatorial candidate Ed Case yesterday painted a somber picture of the state's budget situation and pledged to balance the government's finances and rein in state spending.

Ed Case said the single most important issue for the next governor will be balancing the state budget. Advertiser library photo

"This has to be our beginning because most everything else starts with living within our means," he said.

Case, a House member who represents the Manoa district, said the state is on track to run out of money beginning next year. He promised not to raise any taxes or raid special funds such as the Hawai'i Hurricane Relief Fund. That means the state would have to determine which functions are essential to the public and cut state spending, he said.

"Our choices are very clear," he said. "Either we balance our budget on the revenue side by proposing tax increases or raid those special funds, or we do what we must do and control costs and improve operations. My commitment to Hawai'i today is to live within our means by bringing in the costs and operations side of our state budget under control once and for all."

Case said even the Department of Education's programs should be evaluated to help steer more money to the classrooms. He said certain adult education classes — not including citizenship programs — do not meet the criteria of being essential.

"When you talk about eliminating those programs, or requiring them to pay as you go, you're obviously not making any friends, but the fact of the matter is we don't have enough money," he said. "The money going into those programs should be reallocated to the classrooms."

Case said he has not ruled out layoffs, but he said that would be a last resort.

"I think we have lots of options before we get to that point," he said. "But to rule it out whatsoever is not responsible."

Case also said state government should run like a business, and that he would draft more people from the private sector to government positions. Among those he would seek is BancWest Corp. chairman and chief executive officer Walter Dods, whom Case said would be perfect to work on managing finances or on business development.

Case's plan includes revisiting the "unfinished business of civil service and collective bargaining reform" and building a state budget for the long term rather than year to year.

Gov. Ben Cayetano's administration last night could not immediately verify Case's calculations, which concluded that the state is headed toward a negative balance next year. Case also said the state will wind up with a $329 million deficit by the end of June 2005.

Case said he welcomed Cayetano's analysis of his plan, that he believes it is the function of state government to analyze proposals on the state budget and finances.

Case said he will be detailing other parts of his plan, including economic revitalization, education reform and good government, in the next few weeks.

Reach Lynda Arakawa at larakawa@honoluluadvertiser.com or 525-8070.