$539 million added to construction budget
| • | Lingle seeks $90 million to fix Hawai'i's schools |
By Gordon Y.K. Pang
Advertiser Capitol Bureau
Gov. Linda Lingle wants lawmakers to add $539.3 million to the state's construction budget for a host of projects, including repair and maintenance programs, highway improvements, a new sewage treatment plant and planning for new jails across the state.
But despite proposing to nearly triple spending on capital improvements, from $310 million to $849 million for fiscal year 2005, there are no eye-opening, big-ticket items.
"It is a large capital improvements budget, but we think a prudent one because of the amount of federal funds we're able to get combined with the low rate of interest at this time," the governor said.
Among the highlights of the supplemental request to the operating budget: • $2.7 million for primary care for uninsured persons needing medical, dental and behavioral health services. • $11.8 million to provide medical insurance under the QUEST program for more residents without health insurance. • $18.5 million for adult mental health programs. • $31.2 million for the state's 12 community hospitals, which had been left unfunded in the second year of the biennium by the Legislature. • $5 million for invasive species control programs. • $1.2 million to cover increased expenses associated with out-of-state inmate contracts. • $5.1 million to send an additional 200 inmates to out-of-state facilities and $900,000 to house an added 25 inmates at the Honolulu Federal Detention Center.
Lingle's supplemental request for the state general fund also was relatively modest, calling for an $86.8 million addition to the $3.9 billion budget, an increase of 2.3 percent over current levels.
Supplemental request highlights
The modest operating request, as Lingle described it, coincided with the state Council on Revenues' decision to lower its cash forecast for state coffers yesterday afternoon.
The largest new requests are for the Department of Transportation, and much of the money comes from federal sources and revenue bonds, which are paid back by dedicated sources of revenues such as gasoline taxes, concessions and lease income. Included are $24 million for construction of the North/South Road connecting 'Ewa with Kapolei; $30 million for widening or realignment of Honoapi'ilani Highway on Maui; $30.4 million for baggage improvements at Kahului Airport; $28.3 million for baggage improvements at Honolulu International Airport; $10 million for improvements to the cruise terminal at Honolulu Harbor's Pier 2; $20 million for improvements to the container yard at Pier 51B of Honolulu Harbor; and $11.5 million for improvements to the container yard at Sand Island.
The budget request was submitted as a supplement to the 2003-05 $7.7 billion biennial budget, and comes after months of consultation with state agencies.
The administration is seeking $90 million in general obligation bonds for school repairs and maintenance projects. The governor sought a similar request last year, which was reduced to under $42 million by members of the Legislature, who said that the Department of Accounting and General Services was having a difficult time keeping up with the repairs with the funds already budgeted. An additional $25 million is earmarked for major repair and maintenance at University of Hawai'i campuses.
The administration wants $14 million in general obligation bonds for cesspool replacements and comfort station improvements at state parks, $18.2 million to upgrade the state's Waimanalo wastewater treatment plant, $10 million in reimbursable general obligation bond funds for renovations to small boat harbors statewide, $6.6 million for renovations, repairs and modernization of state-owned housing projects, and $2 million more to deal with repairs and maintenance at the Hawai"i Convention Center.
Changes are ahead for the state's correctional facilities, and the governor wants to reauthorize $18.7 million in general obligation bonds for construction and equipment for the Maui Community Correctional Center and $6 million for safety improvements at the Halawa Correctional Facility. Also sought are $1.5 million and $475,000, respectively, for planning of replacement facilities for the aging O'ahu Community Correctional Center and the Kaua'i Community Correctional Center.
Several projects for the Kaka'ako waterfront area are among the more interesting proposals announced yesterday. The administration wants to provide $20 million for design and construction of a multi-deck parking facility, presumably timed to coincide with the opening of the University of Hawai'i's medical school facility. Also sought is $9 million for roadway improvements along the waterfront tied to construction of the Department of Transportation's proposed cruise ship terminal.
The Department of Education would get $12 million to help build the Ocean Pointe Elementary School in 'Ewa, $6 million for a new administration building and library at Kealakehe Intermediate School on the Big Island, and $2 million for a new six-classroom building at Hana High and Elementary School on Maui.
Lingle's modest 2.3 percent general fund increase was overshadowed yesterday by the Council on Revenues' revised projections.
The council revised its forecast for the current 2004 fiscal year from an increase of 6.2 percent to 5.2 percent, which means a difference of about $30 million to the state's revenues for the year. Council members said the revision was necessary after coming to the realization that it had over-projected $30 million in revenues at the end of the last fiscal year due to confusion over the "weekend effect," where in months ending in the middle of the weekend revenues are not deposited until the following Monday.
Both Lingle and Budget Director Georgina Kawamura said the lower revenues were not a concern. Kawamura noted that non-tax revenues, such as interest income, were up about $12.4 million, meaning the actual impact of the revised forecast would be only about $18.6 million.
"We're just going to continue to exercise fiscal discipline," Kawamura said late yesterday.
Reach Gordon Pang at 525-8070, or e-mail at gpang@honoluluadvertiser.com.
