honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser
Posted at 2:37 p.m., Saturday, January 31, 2009

Big Island mayor seeking 5% cut

Associated Press

HILO, Hawai'i — Big Island Mayor Billy Kenoi says he's asked county departments to look for a 5 percent budget cut to be taken from discretionary spending, not wages and benefits.

Kenoi says the county will be "OK" this fiscal year, which ends June 30. But he's uncertain about the following fiscal year and says that cuts will be needed throughout the budget.

County administrators say that could include extending a recent hiring freeze, reducing spending and raising various fees.

The county has been hit by the tourism slowdown. Fewer visitors taking shorter vacations means less transient accommodations tax revenues.

Hawaii County was expected to earn $20.1 million in transient taxes this fiscal year, but the amount was later revised to about $2.5 million less.