Cut state worker pay and benefits, Lingle proposes

On March 25, Gov. Linda Lingle proposed to balance the state budget in part by cutting wages and benefits to state workers. Lingle did not provide details of the cuts in her press release, since contracts with Hawaii’s four public unions are currently being negotiated. The unions representing blue- and white-collar workers, teachers, professors and nurses have won wage increases between 16.5 percent and 29.6 percent between July 2005 and June 2009.

The Legislature, dominated by Democrats with close ties to labor, has sought to address a projected $255 million revenue shortfall through fiscal year 2011 through layoffs and tax increases, which Lingle, a Republican, opposes.

At least one of the four county mayors must go along with the governor’s proposal to cut public union worker pay and benefits. Each mayor gets one vote on offers to the unions and the governor has four – as of month’s end, there was a stalemate with none of the mayors willing to go along.

Lingle’s plan would also use $157 million in federal stimulus funds that would require the Legislature to restore $30 million in cuts to the Department of Education in both fiscal year 2010 and 2011, and restore $35 million cut from the University of Hawaii. The D.O.E. also stands to receive $80 million in Title I funding for students from low-income families, and for special-education programs and services.

Lingle also proposes using $24 million from the $315 million in Federal Medical Assistance Percentage funds to cover costs at public hospitals and mental-health services.