Cayetano says Case budget plan means layoffs

Ed Case, Democratic gubernatorial candidate, goes over his plan to manage the state budget, using a chart at his campaign office. Jeff Widener • The Honolulu Advertiser

By Lynda Arakawa
Advertiser Capitol Bureau

State layoffs probably would be inevitable under a budget-balancing plan proposed by Democratic gubernatorial candidate Ed Case, Gov. Ben Cayetano said yesterday.

Asked about the proposals Case unveiled Tuesday, Cayetano said the Manoa state representative incorrectly suggests that the state has not undergone budget cuts. The governor also said he is skeptical of Case's plan to balance the budget without taking money from state special funds.

"I frankly don't see how he can balance the budget without layoffs if he proposes not to use the Hurricane Relief Fund or any other special fund," Cayetano said. "But can it be done? Of course it can be done. The question is, how much pain do you want to inflict on the state government and its ability to provide services, especially to the disadvantaged people in this state?"

As he did with Republican governor candidate Linda Lingle's economic plan, Cayetano said his administration will analyze Case's budget proposals. Case has said the next governor's first job is balancing the state budget, and promised not to raise taxes or raid special funds. Case said that means the state will have to prioritize, live within its means and run government like a business. He did not rule out layoffs, but said that would be a last resort, citing attrition as a way to save money.

That's not so easy, Cayetano said.

"I personally think that for him to say that he's going to rely on attrition — suggesting that we have not done that over the years — he would be surprised to find that the number of employees who do not have to be replaced once they leave state service for whatever reason is comparatively small," Cayetano said. "State government, you must remember, has gone through nearly eight years of pruning."

Still, Cayetano said Case should be given credit because "this will not be a politically correct plan." Cayetano pointed to Case's comments that perhaps some adult education programs in the Department of Education could be eliminated or financed by its users.

Cayetano also said the dual endorsement by the 42,000-member Hawai'i Government Employees Association of fellow gubernatorial candidates Lt. Gov. Mazie Hirono and former state Sen. D.G. "Andy" Anderson is a message to Case.

"I think that it's an indication that they are not pleased with some of the positions that Ed Case has taken," he said. "I think it's damaging in the primary (election) and I think that he needs to show state workers that he cares about them, which I think he does."

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