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The Honolulu Advertiser
Posted on: Wednesday, April 14, 2004

Budget fight focuses on city's empty jobs

By Johnny Brannon
Advertiser Staff Writer

City Council members clashed with administration officials yesterday over proposed budget cuts, empty jobs and city overtime practices.

"We can't give you money for one thing and have you use it for another. If you want overtime, ask for it," said Ann Kobayashi, City Council budget committee chairwoman.

Advertiser library photo

The council has called for cutting more than $2 million from Mayor Jeremy Harris' proposed $1.2 billion operating budget for the fiscal year that begins in July. Most of the money would be cut from city jobs that have not been filled.

But several department heads said that would prevent them from hiring needed workers and would eliminate a source of money to pay others overtime.

There are 66 vacancies in the Department of Planning and Permitting, director Eric Crispin said.

"We have lost people through retirement, and we have not been able to replace them," Crispin said.

He likened the council's plan to withhold money to a standoff between drug dealers: One has a sack of drugs, the other has money to pay for them, but neither trusts the other enough to initiate an exchange.

But Councilman Romy Cachola said it might be better to restrict money for salaries. That way, it could be used to hire employees but not to pay overtime. If overtime is needed, it should be requested separately so the council can accurately keep track of it, Cachola said.

Crispin said that the priority is to hire enough employees, but that the money should be unrestricted so work won't be slowed down.

Council budget chairwoman Ann Kobayashi said she also was concerned about overtime spending.

"We can't give you money for one thing and have you use it for another," she said. "If you want overtime, ask for it. That way, we're accountable. We can't fool the public."

Councilman Charles Djou also questioned Harris' plan to add $2.3 million to a "rainy day fund" while seeking a 3.5 percent tax rate increase on commercial properties.

Harris on Monday scaled down his earlier proposal to increase the tax rate by 7 percent. The mayor said only 3.5 percent was necessary because the city had saved more money than anticipated by refinancing bonds.

But Djou said it made no sense to raise taxes if much of the money wasn't immediately needed.

Kobayashi questioned whether it was realistic for the administration to bank on the rainy day fund containing $37 million after the city sells some downtown commercial property.

"I have a friend who tells me her bank account is going to contain a million dollars because she's going to Vegas," Kobayashi joked.

City budget director Ivan Lui-Kwan said the reserve would strengthen the city's credit ratings but had not been required for the bond refinancing.

The council set a public hearing on the budget for 4 p.m. April 22 at City Hall.

Reach Johnny Brannon at jbrannon@honoluluadvertiser.com or 525-8070.