Tensions over the state's budget crisis continued yesterday as the state House passed a budget draft that will need revision in the Senate after the state Council on Revenues downgraded its revenue forecast last week.

The budget backed by the House cuts 374 state jobs and contains $10.3 billion in overall state spending for fiscal year 2010 — $799.6 million less than Gov. Linda Lingle first proposed in December.

For fiscal year 2011, the House budget calls for $10.4 billion in spending, $892.1 million less than the governor recommended.

For general-fund spending, over which lawmakers have the most discretion, the budget is $5.1 billion for 2010 and $5.2 billion for 2011, which is $235.8 million and $170.5 million less, respectively, than the governor recommended.

Lingle yesterday again said tax increases and state worker layoffs should be off the table.

State Rep. Marcus Oshiro, D-39th (Wahiawa), chairman of the House Finance Committee, praised the House's work on the bill and blasted Lingle for a lack of specifics and for refusing to acknowledge that layoffs and increased taxes may be necessary.

"I am also disturbed by the governor's sudden change of heart and unilateral decision to end open discussions with the Legislature on fixing the budget shortfall and her unilateral proclamation that there will not be any layoffs or raising of taxes," said Oshiro, speaking on the House floor before the vote.

"Forget the fact that I don't believe in pulling rabbits out of a hat, or wishing upon a star, or the pot of gold at the end of the rainbow," Oshiro said. "I honestly thought we had pledged to work together — that it would not be business as usual."

Lingle, speaking to reporters, said she wanted to inform lawmakers at the earliest possible time of her intentions on tax increases and layoffs. She said Oshiro "is under a lot of pressure and stress right now and I can understand that he has never been in a position like this before. But, as circumstances change, you adapt to the situation."

House Republicans objected to the budget draft and called on state workers and lawmakers to work one day a month without pay in an effort to save nearly $100 million a year.

Republicans also asked state workers to reconsider increasing personal payments to health benefits and retirement programs, initiatives initially proposed by state House Speaker Calvin Say, D-20th (St. Louis Heights, Palolo Valley, Wilhelmina Rise), that died in committee.

State Rep. Kymberly Pine, R-43rd ('Ewa Beach, Iroquois Point, Pu'uloa), said government workers need to do more to help alleviate the budget crisis.

"I am voting against this budget because we failed to follow you, Mr. Speaker, to where we needed to go to solve this crisis," Pine said on the House floor before the vote. She said the latest revenue projection has left lawmakers facing a $1 billion budget shortfall, "and so we must bring back solutions that were previously off the table."

The Council on Revenues last Thursday lowered its projection of state revenues for the fiscal year that ends June 30. The council said revenues would be 5 percent less than the previous year — in January it had said 3 percent — creating an additional $90 million revenue decline.