Lingle directs departments to cut spending even more

The Lingle administration on May 18 ordered state agencies to cut $36.3 million in spending, which essentially ended all discretionary spending. The budget cuts were announced ten days before the May 28 meeting of the Council on Revenues, which projected that the state now has to come up with more than $600 million more in funding to balance its books.

Following the Council’s meeting, Gov. Linda Lingle said in a statement: "Although last week I instructed all state departments to reduce discretionary spending by 2 percent on top of earlier budget restrictions of 6 percent, this will not be enough to cover the $185.6 million shortfall between now and June 30, 2009.” Lingle says at 1 p.m. Monday, June 1, she will tell the public the options available to take care of the shortfall on television, radio and a webcast.

The Council on Revenues now projects that the state will have $185.7 million less in this fiscal year, $207.7 million less in 2010 and $218.1 million less in the 2011 fiscal year, according to the legislative finance committees. Meanwhile, Lingle's office came up with a $685 million figure for the fiscal years.

The council started the year saying the state would take in 3 percent less in the current fiscal year, ending June 30, than last fiscal year. The revenue prediction was cut again in March to 5 percent less and lowered again yesterday to minus 9 percent. And the council changed the growth rate for fiscal 2010 from 0.5 percent to no growth. Actual tax collections are coming in at minus 6.8 percent.

In a written release, Lingle lashed out at the state Legislature, saying the cuts were needed because lawmakers did not follow her advice. She said her administration wanted to cut money from the Department of Education and replace it with money from the federal stimulus funds and also tap the state's rainy-day fund, but the Legislature refused both requests.