City will present its budget today
By Treena Shapiro
Advertiser Staff Writer
When the city's billion-dollar operating budget is unveiled this morning, it should answer questions about a proposed property-tax increase and cuts across the city departments.
Gregory Yamamoto • The Honolulu Advertiser
Ivan Lui-Kwan, the city's budget director, said every department's operating budget would be trimmed to lessen the burden on taxpayers. While a property-tax increase is likely, Lui-Kwan said the mayor asked him to keep the revenues from a tax hike and increased assessments to less than $49 million.
Honolulu budget director Ivan Lui-Kwan said the city will be able to save about $33 million by cutting more than 1,000 unfilled positions, but still faces a budget deficit of $100 million to $130 million.
"The process that we go through is to scrutinize very, very carefully every single expenditure (and) cut the operating budgets to the lowest number possible that will still allow them to function at the level expected of them," he said.
Lui-Kwan said the city is facing a budget shortfall between $100 million and $130 million as a result of inflation, pay raises and higher payments into the employees' retirement service and health fund. The city has faced a similar shortfall for the past several years, he said.
The city will save $33 million by eliminating more than 1,000 unfilled positions, exempting only those jobs considered critical to city operations and uniformed public safety personnel.
Lui-Kwan said declining property-tax revenues — $384 million last year from $433 million in 1994 — means that the departmental budgets have already been cut to the bone. "There's been considerable stress in the executive departments, more than in other departments, mostly because of the drive to deliver these services on such lean budgets," Lui-Kwan said.
On Tuesday, the departments will begin reporting to the City Council during budget hearings. The City Council is required to turn over the budget by June 15.
