Democrats, Lingle spar over budget
By Lynda Arakawa
Advertiser Capitol Bureau
Partisan squabbles over the state budget escalated yesterday as Democratic lawmakers blasted Republican Gov. Linda Lingle for her recent public statements that blamed the Legislature for part of the state's financial problems.
"It looks like the honeymoon is over ... ," said Sen. Willie Espero, D-20th ('Ewa Beach, Waipahu), during a news conference attended by more than a dozen House and Senate Democrats.
LINGLE
"She's going to put her spin on everything and that's what's going on. And we need to make sure that the public is clearly educated, and don't just listen to this slick administration but listen to your legislators, who you elected to serve you."
But Lingle yesterday defended her earlier criticism of legislators who she said failed to confront a budget deficit.
She said that "it's more popular to give out money than to withhold funding when times are tough, but I feel I owe it to the general community to make certain that our state doesn't get into the serious financial trouble that so many other states are in today."
The dispute involves the state's $7.6 billion two-year operating budget. Speaking to reporters and on a taped KITV telecast Wednesday, the governor said she now has to make up a $152 million budget shortfall because of reduced Council on Revenues projections and what she called bad budgeting decisions by lawmakers.
Lingle has ordered state agencies to cut nonfixed costs by 20 percent during the first three months of the fiscal year that begins Tuesday.
But Democratic lawmakers said they did pass a balanced budget based on March projections by the Council on Revenues indicating 4.3 percent growth but the council lowered its revenue projections to 1.8 percent growth after the Legislature adjourned. Each percentage point represents $30 million.
"Gov. Lingle has been on the job only seven months, but she's quickly learned to blame the Legislature for all of the state's budget woes," said Senate President Robert Bunda, D-22nd (North Shore, Wahiawa).
"To her call for us to live within our means, I say that the Legislature has had to turn away far more people, over a far longer period than she, just so we could balance the budget while supporting education and essential public services."
On the telecast, Lingle said the budget problems worsened for her administration because it has to find a way to restore money that the Legislature left out for the quasi-public Hawaii Health Systems Corp., which operates 12 state community hospitals.
The Legislature appropriated $31.9 million to the hospital system for the 2004 fiscal year but did not provide another $31.9 million that the system requested for the following year. Money for the second year may be appropriated next session.
House Majority Leader Scott Saiki, D-22nd (McCully, Pawa'a), said lawmakers want to hold the hospital system accountable before they give it more money, citing a 2002 legislative auditor's report that described poor management of its procurement and contracts.
House Speaker Calvin Say, D-20th (St. Louis Hts., Palolo, Wilhelmina Rise), said he expects the next Council on Revenues projection to bring the $152 million shortfall "down to zero." A staff member later said Say was referring to state Tax Department revenue figures. Say did not detail why he believed new revenue projections would make up the shortfall, saying only that he's optimistic.
Meanwhile, House and Senate Democrats are still considering a special session to override some of the 50 vetoes Lingle issued last week, including the trimming of about $3.6 million earmarked for social services.
The Senate, in what appears to be an unprecedented move, will hold a public briefing Monday at the Capitol to see if there is a groundswell of support for overriding any vetoes.
Say said House Democrats will meet Monday and will make a decision on whether to override by Thursday.
But House and Senate Republicans supported the governor's position and said there isn't any money to pay for the initiatives she vetoed.
"We don't need a special session — we need Gov. Lingle to lead us out of this mess and provide a balanced, responsible budget next session," said Senate Minority Leader Fred Hemmings, R-25th (Kailua, Waimanalo, Hawai'i Kai).
Advertiser staff writer Kawehi Haug and The Associated Press contributed to this report.
Reach Lynda Arakawa at larakawa@honoluluadvertiser.com or at 525-8070.
