Faced with the largest cuts ever to Hawaii's public schools, state Board of Education members yesterday again delayed a decision on a budget reduction plan, this time saying they are concerned the state's fiscal situation may change between now and the time the governor signs the budget bill in July.

"The governor still hasn't signed the state budget bill. Because of that, any decisions that we take today may have to be altered," board Chairman Garrett Toguchi said at yesterday's meeting of the board's Budget and Fiscal Accountability Committee.

State Budget Director Georgina Kawamura, however, told the board members that Gov. Linda Lingle intends to sign the budget bill by July 1 and suggested they use the information that is available to them now to work out their budget plans.

"Again, we are proceeding ... as if we have a budget in place. We're working with each department as far as what their allotments will be and to make sure they are operating July 1," Kawamura said.

Also yesterday, Toguchi said the board sent a letter to state Senate President Colleen Hanabusa and House Speaker Calvin Say urging them to convene a special session of the Legislature to consider use of the hurricane relief fund or an increase in the general excise tax to plug the state budget deficit.

Before the board is a proposal to cut $226 million from next year's $1.8 billion public education budget through a variety of means: a 5 percent across-the-board cut in school-level programs, a reduction in part-time workers and potential furloughs of teachers and other school employees.

For the second time in two weeks, the board postponed a vote, saying it does not have enough information to make a decision. The board will reconvene in a special meeting on July 1.

Board members told Kawamura they are concerned the governor has yet to sign the state budget .

"Schools are going to be opening at the ending of July and they need money. ... We need to have this thing rolling along so that our schools can do what they need to do," board member Maggie Cox said.

Kawamura assured members that Lingle's signing of the state budget should not be a concern.

QUARTERLY INSTALLMENTS

Toguchi also said board members are concerned about a July 19 memo from Lingle that alerted all state departments that she will be releasing money incrementally on a quarterly basis — rather than in an annual lump sum — because the state's financial situation is in a constant state of change.

"We typically get an annual allotment from (the state). And that allows us to determine what parts of our budget we need to restrict and what parts can be allowed to be spent," Toguchi said.

Toguchi said the board will seek a waiver to the quarterly allotments, because schools can't operate not knowing how much money they will have from quarter to quarter.

"It's going to make us cash-short before the end of the first quarter, potentially having to close schools for about five or six days," he said.

But, given the state's budget situation, Kawamura told board members it's unclear whether the waiver will be granted.

"We're in a very difficult position to give you an annual allotment," she said.

FURLOUGHS A FACTOR

State officials are in discussions with labor unions, including the Hawai'i State Teachers Association, about furloughs, another reason board members said they could not make a decision on the budget yesterday.

The HSTA was among two other labor unions to file complaints in Circuit Court last week. The union asked the court for an injunction stopping Lingle from imposing spending restrictions equivalent to furloughs at the state Department of Education, or roughly $127 million a year for the next two years.

Because the issue is in negotiations, Toguchi said he was unwilling to discuss exactly how many days could potentially be cut from the school year because of furloughs.

To cover the entire $127 million restriction, Toguchi said 12-month employees would need to be furloughed for 36 days or 10-month employees would need to be furloughed for 30 days.

"It's something we want to avoid as much as possible. Our main goal is to preserve as many school instruction days as much as possible," he said.