Stimulus budget slashed
By Kevin Dayton
Advertiser Capitol Bureau Chief
House lawmakers aren't going along with Gov. Ben Cayetano's plan to pump more than $900 million into new construction projects, cutting his request by more than half, according to preliminary budget documents released last night.
Major projects on the chopping block include $142 million to build a new campus for the University of Hawai'i at West O'ahu.
A draft version of the state construction budget shows the House Finance Committee plans to authorize less than $350 million in new general obligation bond borrowing this year to pay for construction.
That is far short of the $952 million the Cayetano administration requested.
Cayetano has argued the extra construction spending is necessary in the aftermath of the Sept. 11 attacks to keep the construction industry rolling, to boost the local economy and to protect jobs.
But key lawmakers, including House Speaker Calvin Say, worry Cayetano's plan would drive the state too deeply into debt, and saddle the state with heavy principle and interest payments in the future.
The House Finance Committee must vote on the proposed House draft of the budget by Tuesday. The proposed budget then goes to the full House for a floor vote, and from there will advance to the state Senate for further consideration.
The proposed construction budget also would provide $2.5 million to buy and renovate the downtown post office building, which the state Department of Commerce and Consumer Affairs is eyeing for office space.
DCCA is currently housed in the Kamamalu Building at 1010 Richards St., which is slated for $1.4 million in asbestos removal and renovation work in the proposed budget.
The biggest winner in the proposed construction budget is the public school system, with lawmakers poised to authorize borrowing of more than $160 million for new construction and repair and maintenance of schools and public libraries. But that is still only about half of what the Cayetano administration requested.
Projects that appear to be making the cut include more than $30 million to expand the Maui Community Correctional Center and $30 million for a new judiciary complex in Hilo. However, that $30 million amounts to less than half the amount the administration requested for the Hilo complex.
Lawmakers also authorized the state hospital system to borrow $38 million for improvements to the Maui Memorial Medical Center, but would not agree to repay the money out of the general treasury. That means the hospital will have to find some other source of cash to pay off the money it borrows for the improvements.
Reach Kevin Dayton at kdayton@honoluluadvertiser.com or 525-8070.
