Council panel likely to approve HGEA raises

By Johnny Brannon
Advertiser Staff Writer

Pay raises for nearly 3,000 white-collar city workers are expected to easily clear their first hurdle today in a vote by the City Council's budget committee.

The raises of up to 9 percent are part of a statewide package awarded to Hawai'i Government Employees Association members through arbitration, and must be approved separately by the state and four counties.

The city's share of the package will cost $6.9 million next year, and faces a vote by the full council on May 12.

Mayor Jeremy Harris has urged the panel to reject the raises, but council leaders say they're likely to be approved.

"Our employees are our greatest asset," Council chairman Donovan Dela Cruz said.

One council member, Charles Djou, says he will vote in opposition.

"We have a government we simply can't afford," said Djou, who is also opposing a tax rate increase for commercial, industrial and hotel properties.

The raises have factored into a simmering dispute between Harris and the council over the city's annual budget. Harris didn't include money in his spending plan to cover the increases, so the council must cut spending elsewhere or seek new revenue to cover the difference.

If the raises are approved, the council should create a permanent source of money to pay for them in future years, Harris says. The Legislature has approved the state's portion of the deal, and Gov. Linda Lingle has until Monday to approve or veto the raises. The Democratic majority of lawmakers would almost certainly overturn any veto by the Republican governor, however.

The collective bargaining agreements cover HGEA units 2,3,4 and 13 under a contract that extends to June 2005.

On April 8, Lingle sent letters to all state employees, explaining why she asked the Legislature to reject the package in favor of one that would provide raises of up to 4 percent.

"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."

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