Updated at 4:48 p.m., Monday, December 17, 2007
State budget proposal calls for capital improvements
Advertiser Staff
Gov. Linda Lingle today proposed a supplemental budget for the next fiscal year that would triple spending on capital improvement projects, providing money to finance renovations at state airports and harbors and at the University of Hawai'i and public schools.The governor wants to increase capital improvement project spending by $1.1 billion to $1.6 billion total — in part to help the construction sector at a time when the state's economy is expected to slow.
The new spending would include $250.1 million for an airport modernization plan and $124.4 million for a harbors modernization plan.
Lingle also recommended increasing the state's operating budget by $306.7 million — or 2.9 percent -- to $10.8 billion. The general fund portion of the budget, over which the governor and the state Legislature have the most discretion, would grow by $100.2 million -- or 1.9 percent -- to $5.4 billion. The governor said two-thirds of the general-fund boost would cover increased fringe benefits for government workers.
State revenue growth is up 3.4 percent over last year through the first five months of the fiscal year, which is lower than the 5.7 percent growth the state Council on Revenues has projected for the fiscal year.
The slower growth will likely prompt state lawmakers to be cautious with spending in the upcoming session that starts in January.
Lingle described her spending proposal as "prudent" and focussed on priorities such as affordable housing, education, infrastructure, and natural and cultural resource protection.
The governor wants more money to help finance affordable rental housing, repairs at public housing projects and a permanent homeless shelter in urban Honolulu to replace the temporary Next Step shelter in Kaka'ako.
Lingle would spend $40 million on school renovation and construction at public schools and $50 million for UH repairs. She also proposed $4.4 million to improve security across the UH system.
The governor also recommended $50 million for the first phase of new correctional facility on Maui and $25.9 million for repairs at Aloha Stadium.
Lingle also plans to call for targeted tax relief at her State of the State speech in January. State lawmakers are also required by the state constitution this year to provide tax relief because the general fund balance exceeded revenues for two consecutive years.
Lingle's spending proposal, announced at a news conference at the state Capitol this afternoon, is for the second year of the two-year budget cycle. State lawmakers will consider the governor's proposal when they draft their own budget next session.
A news release listed the following highlights of the supplemental budget request:
$40 million to renovate existing school facilities, while also planning for new schools to meet the needs of expanding communities.
Establishment of 108 positions (teachers, educational aides, social workers and behavioral specialists) in the Department of Education for autism services, previously handled by contract personnel.
$50 million for the University of Hawai'i to meet health and safety requirements, as well as major maintenance needs throughout the UH system.
$4.4 million to add 41 positions to the UH system to strengthen security on all campuses. The funds will enhance emergency communication and surveillance systems and provide necessary equipment and vehicles at UH campuses statewide.
$2.5 million for improvements to the library collection and services at the UH Mānoa campus;
$19.9 million for the Hawaiian language building at UH-Hilo.
$26 million to complete the acquisition of land and construction improvements at the Kukui Gardens Rental Housing Complex to ensure the units remain affordable.
$25 million into the Rental Housing Trust Fund to encourage the development of affordable rental housing projects.
$25 million for the Dwelling Unit Revolving Fund to provide interim financing for affordable housing development.
$26.4 million for major repairs of public housing projects statewide, which includes $6.4 million for the completion of elevator repairs at various housing projects.
$24.3 million to continue the state's efforts to assist the homeless, including $4.3 million to provide operating funds for the service contracts for four homeless shelter facilities in Wai'anae, Kalaeloa, Kaka'ako and Līhu'e, as well as other facilities in Ma'ili, Kalaeloa and on Kaua'i and the Big Island that are scheduled to open by June 30, 2008. The request includes $20 million for the development of a permanent homeless shelter in urban Honolulu.
$100 million to continue the development of Hawaiian homelands statewide to support the goal of delivering approximately 1,000 more home sites to beneficiaries.
$124.4 million in revenue bonds to implement the first phase of the Harbors Modernization Plan to increase capacity and upgrade facilities at Honolulu, Kalaeloa Barbers Point, Kahului, Hilo, Kawaihae, and Nawiliwili Harbors.
$250.1 million in revenue bonds to continue implementation of the Airports Modernization Plan, specifically to fund improvements at Honolulu and Kahului International Airports, including new and expanded parking facilities, improvements to the baggage handling system at Līhu'e International Airport, noise abatement at Hilo International Airport, and security enhancements at all major airports.
$33.5 million in special funds and revenue bonds for continued highway operations and to complete current highway projects on O'ahu, Maui and Hawai'i.
$20 million emergency appropriation request to meet increases in highway operating costs, including special maintenance.
$10 million for adult mental health outpatient services as a result of growing caseloads and escalating costs.
$11.3 million for critical repairs at community hospitals statewide.
$50 million for the first phase of a new public safety complex on Maui.
$25.9 million for ongoing repairs at Aloha Stadium.
$10.5 million to expand energy conservation measures in public buildings statewide.
$15 million to support ongoing efforts to protect and enhance natural and cultural resources, including $10 million to repair small boat harbors statewide and $5 million for improvements and upgrades to state park facilities. The Administration is also requesting the addition of 15 positions in the Department of Land and Natural Resources to support enforcement and conservation efforts.
$4.9 million for renovations at historic Washington Place.
$7.9 million for repairs to the State Capitol reflecting pools.
