Gov. Abercrombie proposes
additional state budget cuts

The Abercrombie administration has proposed new budget cuts that would total approximately $50 million per year, about 1 percent of the $5.4 billion budget approved by the Legislature for 2012 and $5.6 billion for 2013.

State Senate President Shan S. Tsutsui has circulated to majority party senators a 31-page, Aug. 18 memo detailing the proposed cuts, which the governor discussed in general tems at a news conference on Aug. 17.

Most of the savings – $30.5 million in fiscal year 2012 and $21.1 million in 2013 – will be realized by deferring issuing construction bonds, but much of the savings would come from consolidation of contracts and functions in the Department of Human Services and the Department of Health. The Department of Education was not touched.

The DHS budget would be cut by $1.5 million in 2012 and $1.8 million in 2012 “by consolidating Temporary Assistance for Needy Families subsidized employment contract services to one contractor for statewide service delivery,” the memo said. Another $1 million in 2012 and $1.5 million in 2013 would be cut “by consolidating TNF vocational rehabilitation contract services to one contracted vendor for statewide service delivery.”

In addition, cuts of $528,000 in 2012 and $1 million in 2013 would be made in substance abuse contract services for TANF populations. Further cuts of $5 million in federal funds in both 2012 and 2013 were proposed “for child protective services payments due to lower utilization.”

Health Department cuts totaling $5.4 million in 2012 and $6.1 million in 2013 include $2.5 million in both 2012 and 2013 for home- and community-based waiver services and $800,000 each year for the Oahu Aeromedical Transport Services. In addition, adult mental health outpatient purchase of service contracts would be cut by $1.3 million in both 2012 and 2013. Child and adolescent mental health purchase of service contracts would be reduced by $473,000 each year “by reducing administrative overhead costs.”

The University of Hawaii’s budget would be cut by $3 million per year under the administration’s proposal, but the Department of Education and Charter Schools budgets would not face further cuts.