Posted on: Tuesday, May 25, 2004

HGEA lashes out at Lingle over raises

Advertiser Staff

The state's largest public employee union yesterday accused Gov. Linda Lingle of "using scare tactics" by "threatening" to restrict financing for community services to pay for public employee pay raises.

Hawai'i Government Employees Association executive director Russell Okata referred to a May 12 state Office of Community Services letter warning service providers that its contract service budget may be restricted by up to $1.6 million, or 43 percent of its $3.8 million budget.

The letter, written by Office of Community Services executive director Sam Aiona, said the restrictions are "due to the serious impact that projected collective bargaining costs will have on the state's financial situation."

"It is unconscionable for the governor to take it out on Hawai'i's needy families and pin the blame on collective bargaining," Okata said in a news release. "This smells like political gamesmanship, and it is shameful that the governor plays games with people's lives."

Aiona yesterday said his office is seeking federal financing to replace any restricted money.

"This administration doesn't want to take it out on the needy," he said. "We're looking for ways to make sure that the services are not interrupted."

An arbitration panel awarded 23,000 HGEA workers pay increases of between 5 percent and 9 percent.

Lingle said the raises will cost the state $32 million more in fiscal year 2005, which begins July 1, and $54 million annually beginning in fiscal 2006.

Okata questioned the need for restriction in the first place, saying the economy is improving. State tax revenues are running about 7.7 percent higher for the 2004 fiscal year than in fiscal year 2003.

The state Council on Revenues' has projected 5.2 percent growth, which could mean the state general fund will start the new fiscal year with more money than expected when the state budget was passed last month.

Lingle yesterday reiterated her pledge to "maintain fiscal discipline." She said her administration will continue to follow the Council on Revenues' June and September projections and that "we'll make decisions based on real revenues as they come in.

"If we've learned anything from history, we've learned not to spend everything we have and not to overspend just when times are starting to improve," she said.