Spending bill's fate rests with governor
By Gordon Y.K. Pang and Lynda Arakawa
Advertiser Capitol Bureau
The Legislature has delivered a $3.6 billion supplemental spending bill and other budget-related measures to Gov. Linda Lingle, who must decide by the end of the month if she will veto all or part of the package, or leave it alone.
The Republican governor, eying the legislative races in the November election, is weighing not just the practical and legal impacts of the state's financial picture, but the political ramifications as well.
With few exceptions, vetoes on the budget package likely will be merely symbolic because the Democratic majority is prepared to override them before the session ends May 6.
But Democratic lawmakers, many of whom will be up for re-election this fall, won't necessarily come out ahead politically if they override the vetoes, political observers say.
Lingle and Republicans say the measures proffered by the Democrats are irresponsible, and that the speed with which they've moved has only worsened the situation.
At the heart of the budget dispute for the fiscal year starting July 1 are raises for 23,000 members of the Hawai'i Government Employees Association, which recently was awarded an arbitrated settlement worth between 5 perecent and 9 percent. The 13,200-member Hawai'i State Teachers Association and the 9,400-member Unit 1 of the United Public Workers still are negotiating their next contracts.
Administration officials say if the HGEA raises are applied to two other unions, it would cost the state an average of $100 million annually over the next several years. Lingle says that is more than the state can afford and could lead to a shortfall of $175 million by July 1, 2006.
On April 8, Lingle sent letters to all state employees, explaining why she asked the Legislature to reject the arbitrated HGEA package in favor of one that would give them smaller raises.
"My action does not mean I have any less respect or appreciation for state employees," Lingle wrote. "Instead, it reflects the economic reality we must face for the greater good of our people."
In place, she offered an alternate plan giving workers raises of as much as 4 percent. Lingle said her plan would cost a more "fair" $60 million.
The finance chairs for both houses say they have covered the raises in the budget and that they took great pains to do so.
"We've balanced the budget," said Senate Ways and Means Chairman Brian Taniguchi, D-10th (Manoa, McCully).
Lawmakers used many of the same tools the governor has suggested, Taniguchi said, such as raiding from special funds and eliminating vacant positions.
"It is balanced, and room has been made for this in particular because there is a factor of fairness," said House Finance Chairman Dwight Takamine, D-1st (N. Hilo, Hamakua, N. Kohala).
Union members gave up their right to strike and agreed to abide by an independent arbitrator, he said. At that point, Takamine said, "both parties had the full opportunity to present the strongest case they could."
But House Minority Leader Galen Fox, R-23rd (Waikiki, Ala Moana, Kaka'ako), said the administration should not have been forced into binding arbitration in the first place.
Lawmakers last year restored binding arbitration for HGEA units, essentially reversing its decision two years earlier to eliminate arbitration for most public worker unions. Lingle vetoed the bill, but Democrats overrode her veto.
"The arbitration process was essentially forced on the governor," Fox said. "The governor has to oppose this pay raise because of what it's going to do to the financial situation in Hawai'i, especially if the other unions follow the HGEA pattern."
Some political observers think it's certain that Lingle is going to veto the HGEA arbitrated raises.
"You just know she's going to veto that," said political consultant Don Clegg, who has polled for Democrats and Republicans. "I'm going to suspect that that is the core item which is causing all of this."
Clegg said it will probably be difficult to veto the Democrats' omnibus school reform and crystal methamphetamine packages because they at least have "the appearance" of accomplishing something, he said, adding that in politics, appearances matter.
Although lawmakers who override the veto of HGEA raises may look like heroes to government workers, the majority of the public may not see it as such.
Even though there certainly are many hardworking public employees, "the public perception is that too many civil servants are overpaid and underutilized," Clegg said.
Ultimately, it appears that the political winners of any veto/override showdown will depend on who articulates their message best to the public. In short, a good public relations strategy is key.
Lowell Kalapa, president of the nonprofit Tax Foundation of Hawai'i, said Democratic lawmakers lag behind Lingle in that department.
"She's got such a masterful team as far as PR is concerned," he said. "The Democrats in the Legislature have nothing to compare.
"If she vetoes, and she comes up with a good spin, it'll work against the majority Democrats in the Legislature. And the fallout will be that in November, she'll carry through on her promise that she's going to go after them."
But Democrats insist that by passing the budget and other packages, they were achieving their goals of dealing with the two major issues facing the state — education reform and the war on ice.
They also are standing by their decision to finance the HGEA raises, a fact that won't be lost on the unions at election time.
Reach Gordon Y.K. Pang at gpang@honoluluadvertiser.com. Reach Lynda Arakawa at larakawa@honoluluadvertiser.com. Or reach either at 525-8070.
