Posted on: Sunday, April 3, 2005

Tax breaks may depend on union contracts

Advertiser Staff

Tax breaks for the public may still be on the table at this year's Legislature, but they appear to be on the side for now.

Lawmakers and the Lingle administration say several factors still are in play, including pending contract negotiations with public worker unions. The state Office of Collective Bargaining is in negotiations with the Hawai'i Government Employees Association, the Hawai'i State Teachers Association and the United Public Workers.

State negotiators have offered raises between 1.5 percent and 4 percent for a total package that would cost the state $39.1 million more next year and $83.8 million in ensuing years. State Budget Director Georgina Kawamura said the budget will be able to absorb such increases but may not be able to sustain higher raises being sought by the unions.