State, unions battle over furloughs to balance budget

As the month of June ended, state and union negotiations over proposed furloughs of state workers had hit a wall. Bargaining sessions arranged by federal mediator Ken Kawamoto left the two sides at odds, unwilling to accept each others demands, and no future meetings were scheduled.

J.N. Musto, executive director of the University of Hawaii Professional Assembly, said the four unions told Marie Laderta, state human resources director, that they would not restart negotiations unless Governor Linda Lingle agreed to use the $180 million in the Hurricane Relief Fund and the $45 million rainy day fund and explore raising the general excise tax before cutting public worker pay through furloughs. Laderta said “that has been rejected” by the administration.

Roger Takabayashi, the Hawaii State Teachers Association executive director, agreed “it would be a good gesture” for Lingle to say she would use the special funds before furloughing workers for 72 days over two years. Lingle ordered furloughs to start July 1, which would effectively cut state worker pay by 13.8 percent and save $688 million over the next two years.

The unions says they would agree to furloughs if there is still a budget shortfall after both special-funds are tapped and the general excise tax is increased first. The Hawaii Legislature balanced the budget by raising the hotel room tax, cutting programs and taking nearly $100 million out of special funds, including $20 million from the Hawaii Tobacco Settlement Fund, $20 million from the Housing Revolving Fund and $16 million from the Wireless Enhanced 911 Fund.