The labor savings from collective bargaining will not be enough to close the state's budget deficit, Gov. Linda Lingle said yesterday, adding that the state would not immediately resort to a second round of layoffs to help make up the difference.

The Lingle administration estimates that the proposed contract with the Hawaii Government Employees Association, if ratified, would save the state about $204 million over two years. The administration has projected a budget deficit of about $1 billion through June 2011.

Lingle has imposed 14 percent spending restrictions on the state Department of Education and the University of Hawaii, part of which will be achieved through labor cuts from a new contract with the Hawaii State Teachers Association and a pending contract with the University of Hawaii Professional Assembly.

The only unknown — if the HGEA ratifies the contract — would be labor savings from ongoing negotiations with the blue-collar United Public Workers.

Lingle said she expects to save about $30 million a year — $60 million over two years — from the layoffs of 1,100 state workers in November. The administration predicts that at least 750 of the workers targeted for layoff will actually lose their jobs, but will have a more exact figure in the next few weeks, once workers exercise their civil-service rights to bump junior colleagues or seek other state jobs.

Lingle conceded that the state will still be short even with the savings from furloughs and layoffs. The governor had been saying for several weeks that a second round of layoffs is possible because of the continued decline in state tax collections and the slow pace of contract talks with the unions.

"There's been no decision made yet on any further layoffs," the governor said after honoring outstanding state workers at an awards ceremony at the state Capitol. "We want to get through this part right now, which is a ratification vote by the members.

"I know it's a difficult decision for everybody, as it is in the private sector right now. This is not something anybody is taking any pleasure in, but I think it's a fair resolution based on what our financial situation is and what it's projected to be going forward."

Lingle said additional options to close the deficit would be to refinance the state's debt and continue to trim expenses through program cuts. Some state lawmakers have said they would look at using special funds, such as the hurricane relief fund, and a temporary increase in the general excise tax, perhaps targeted for public education.

"The savings that we're going to get from the furlough plan, it will be substantial, but it won't even come close to closing the budget deficit that we have," Lingle said. "And, as you know, we've tried everything else before we ever touched our labor expenses."

FURLOUGH DAYS

On Wednesday, the Lingle administration and the HGEA agreed to a new contract that calls for 18 furlough days this fiscal year and 24 furlough days next fiscal year for most state workers. The furloughs amount to roughly an 8 percent pay cut. The contract must be ratified by union members, who began voting yesterday.

Randy Perreira, the HGEA's executive director, told reporters earlier this month that part of the reason the union wanted to take a contract proposal to its members rather than wait for binding arbitration was to deter further layoffs.

HGEA member voting continues today, Monday and Tuesday. Jodi Chai, the HGEA's communications officer, said the union hopes to announce the results for most bargaining units on Monday evening. One unit, which covers educational officers at the DOE, will not complete voting until Tuesday, with the results likely released on Tuesday evening.

Many union members voted at the Hawaii Convention Center yesterday, including Tom Koontz, who works in telecommunications planning for the state Department of Accounting and General Services.

Koontz said he voted in favor of ratifying the contract.

"It's past time that the state workers gave up a little as well as everyone else," Koontz said. "We should have agreed to this in June. It's way overdue. I'm highly disappointed with the union's actions in this entire thing. Everybody is ready to move forward and make this happen. We were ready in June. This delay is outrageous."

Dan Bitner, a project engineer for the state Department of Transportation said he hopes the proposal is ratified.

"If there's a lack of funds, you have to do what you have to do," Bitner said. "We all have to sacrifice. We all have to give a little. Everybody's got to pitch in."

PARING EXPENSES

Lloyd Wong, a documents clerk for the state Judiciary, said he and his wife plan to postpone work on their home in Foster Village because of the potential salary reduction and the poor economy.

"We're not going to eat out as much," he said, "and stop buying big items."

Instead of buying Christmas presents this year, Wong said, his family likely will make crafts or treats to give away. "People will be getting chocolate cookies," he said with a laugh.

Like Wong, Roger Tansley, a prison educator for the state Department of Public Safety, said he also is cutting back on spending.

Instead of buying lunch from local vendors, he is now bringing bag lunches from home.

Tansley estimated that the furloughs will cost him a 6 percent salary reduction in the first year and 9 percent in the second year.

"It's going to have a trickle-down effect from the employees to the businesses we support," Tansley said. "For both sides, this isn't a win-win. It's a lose-lose."