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Gov. Linda Lingle announced details of her furlough plan Thursday that will shut down a majority of state offices three Fridays per month for the next two years.
The governor said the furlough plan is a painful but necessary step to save the state $688 million in the biennium budget that begins July 1. Lingle said state directors chose furlough days that typically see the least amount of business for state agencies.
“We don't want to maintain three days of furlough per month,” said the governor, during a press conference carried live by Khon2. “Our goal is to get rid of that as quickly as we can by getting our economy back on track.”
Under the governor’s plan 15,600 state workers will be furloughed 36 days a year for the next two fiscal years, resulting in a pay cut of nearly 14 percent.
The majority of state departments and agencies, including the Department of Health, the Department of Human Services and the Department of Public Safety will shut down on Fridays.
The governor said her administration is still analyzing how the furloughs would impact the Hawaii State Hospital, the Hawaii Youth Correctional Facility as well as state prisons.
Lingle noted airports and Aloha Stadium would keep their current weekly schedules by staggering or rotating furlough days. The governor said offices that provide critical services would actually expand their hours on days doors remain open.
"Food stamps, cash assistance, child care - all of those offices that come under the benefit employment and support services will now be open 7:45 a.m. to 4:30 p.m. Again, four days a week.”
Lingle announced all state workers are being treated equally within the furlough plan, regardless of whether their paychecks come from federal or state government. She said the plan would not impact federal funding for social security benefits delivered by the state.
However state workers not under the governor’s control are not subject to furloughs. “I can't furlough any Department of Education, judiciary, University of Hawaii employees or the legislature or OHA,” said Lingle.
The governor insisted she would not call a special session to address the budget shortfall, but noted lawmakers could bring themselves back into session with a two-thirds vote in each chamber.
"I'd listen to all their ideas; I'd meet with them (and) talk with them,” said Lingle about the possibility of a special session. She also repeated her opposition to any increase in the General Excise Tax in order to close the state’s budget deficit.
After closing a gap in tax revenues of $2 billion dollars with the help of state lawmakers during the past legislative session, Lingle was faced with an additional shortfall of $730 million after the economic forecast worsened even more.
Lingle said if three public worker unions were successful in blocking her furlough plan in court, she would be forced to layoff thousands of state workers under her control.
“The layoffs would probably be around…2,500 people,” she said.
The Hawaii Government Employees Association, United Public Workers and the Hawaii State Teachers Association filed separate lawsuits in state court Tuesday claiming furloughs are a wage issue that falls under collective bargaining. The lawsuits claim the governor does not have the authority to order furloughs without “good faith” bargaining.
While the governor lacks the authority to order furloughs for the Department of Education or the University of Hawaii, she has told both to cut spending by amounts equal to 36 furlough days per year.
HSTA President Roger Takabayashi questioned whether the governor would accept a DOE plan that did not furlough employees a minimum of three days per month.
“I am kind curious if she will accept the department’s plan,” he said. “If the department works a plan that may not have as many days as the rest of the state, will she accept that if they are able to cut dollars from elsewhere?”
The governor has told DOE to find savings of $278.4 million over two years, but has maintained that it’s up to the Board of Education to decide where to cut and whether or not to implement furloughs.
The University of Hawaii has been told to slash spending by $106.8 million over two years, but is expected to receive federal stimulus funds totaling $22 million per year.
Andrew may be reached at ph. 368-7273.
