Governor Lingle Addresses State Economy/Budget
Speaking before 200 business leaders at the Maui Chamber of Commerce's annual installation luncheon, Governor Lingle outlined steps her Administration has taken to strengthen Hawai`i's economic future in light of recent reduced revenue forecasts by the Council on Revenues.
Governor Lingle and Pamela Tumpap (left), president, Maui Chamber of Commerce, discuss economic issues with business leaders during the Chamber’s annual luncheon. Photo by John Andrick.
The Governor told Chamber members that the state is leading efforts to close a revenue gap of $730 million between now and June 30, 2011, in addition to the $2 billion already projected over the past year, based on the Council on Revenues' projections on May 28. This is in addition to the $2 billion shortfall the Council already projected over the past year.
Since last summer, the Lingle-Aiona Administration has taken immediate steps to address the projected loss of $2 billion in revenues, which included restricting state general fund discretionary spending by 8 percent; putting a freeze on hiring, travel and purchases of new equipment; restructuring the state's long-term debt and debt payments; transferring excess balances from certain special funds into the general fund; and utilizing federal stimulus funds.
To close the additional $730 million revenue shortfall, the Governor will furlough all state employees in the state executive branch under her jurisdiction for three days per month starting July 1. Read the executive order signed by the Governor this week.
"The furlough plan is not something we want to do, but in these tough economic times, it can't be business as usual," said Governor Lingle.
Under the Administration's furlough plan, several departments will close all or portions of operations on specified days, with the majority of closures taking place on Fridays. Read the plan.
Governor Lingle swears in the Maui Chamber of Commerce Board of Directors during the Chamber's annual luncheon. Photo by John Andrick.
"The mission of government is to provide services to the people. We will not use furloughs as an excuse for poor quality of public service, and I am asking for your patience as we work to minimize disruptions," Governor Lingle said, noting that several offices will extend their hours to accommodate the public during furlough weeks. Other departments and agencies will modify their furlough schedules and remain open on certain days to ensure the public is able to conduct business and meet deadlines.
The Governor also highlighted ways in which her Administration is stimulating the economy through a $1.8 billion Capital Improvement Project plan that will boost the economy and create jobs.
This plan, unveiled by Governor Lingle in December, includes 271 projects in Maui County that will improve highways, harbors and airports, as well as education facilities through a combination of federal, state and county funds.
In addition, the Lingle-Aiona Administration remains committed to strengthening Hawai`i's future through its pursuit of increased science, technology, engineering and math (STEM) education in Hawai`i classrooms and through the Hawai`i Clean Energy Initiative, a bold partnership that seeks to obtain 70 percent of Hawai`i's energy from clean or renewable sources within one generation.
