STORY SUMMARY>>>
The Lingle administration was handed a victory Friday when Circuit Court Judge Karl Sakamoto refused to block the scheduled layoffs of 650 state workers.
“Anything that's out there that's pending that may impact our decision to move forward with cost savings measures obviously does impact our ability to have a solid financial plan,” said State Budget Director Georgina Kawamura, who expressed relief Sakamoto ruled in the administration’s favor.
The motion for a temporary injunction was filed on behalf of Kulani correctional guards Gerald Kaleiki and Norman Lyman, who worked at the Big Island prison before being laid off recently as the state finalizes the closing of the facility later this month.
The reach and scope of the lawsuit was expanded to include the layoffs of all state workers as well as non-union furloughs when the judge granted class action status.
Attorney Charles Khim, who represents the plaintiffs, argued layoffs are no longer necessary since the state has already realized labor savings through negotiated contracts with public school teachers and the Hawaii Government Employees Association.
"We should borrow money from the retirement system,” Khim told reporters after the ruling. “After all it's the employees' money and every corporation does that, they borrow from their retirement system to cover current debts.”
Khim went on to argue that all state workers are not being treated equally as guaranteed by Hawaii’s Constitution. He pointed to an executive order issued by Gov. Lingle last month that canceled all future furloughs for executive level employees, who had also taken a five percent pay cut.
“If the top government employees who get paid the big bucks can have no layoffs and no furloughs…the average guy and gal should have no furloughs and no layoffs,” Khim said.
Khim plans to appeal Sakamoto’s decision but has not decided on the proper venue, either the Intermediate Court of Appeals or the Hawaii Supreme Court.
“At this point in time we represent every government employee who has been furloughed without approval of their union and who has been laid off.”
STATE’S FINANCIAL CONDITION
While the Council on Revenues has predicted a 1.5 percent drop in state tax collections for the current fiscal year, Kawamura said planning for the supplemental budget due in late December is focused on actual collections to date.
In the first four months of the fiscal year tax collections were down 10.9 percent.
“That's why we're calling on our departments to take a real serious look at programmatic issues and where is it that we have the opportunity to save money,” Kawamura told Khon2.
Every percentage point drop in tax collections results in the loss of another $40 million to the state.
Kawamura said the administration’s efforts in implementing furloughs, layoffs, hiring freezes as well as programmatic adjustments have lowered the state’s billion dollar deficit to about $500 or $600 million.
However if the current rate of tax collections is maintained until the end of the fiscal year the state could be grappling with an additional shortfall of $376 million.
“Obviously that actual collections to date of negative 10.9 percent when the Council on Revenues has estimated negative 1.5 percent adds more challenges to our financial planning,” said Kawamura.
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