May 28, 2009 - Governor's Weekly Radio Address - Council on Revenues Update

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Aloha. 

The Council on Revenues' latest projections show our state budget shortfall is even larger than expected. More daunting is the fact that part of this shortfall must be addressed before the current fiscal year ends on June 30. 

Although I have instructed all state departments to reduce discretionary spending by 2 percent, on top of earlier budget restrictions of 6 percent, this will not be enough to cover the additional budget gap and balance the budget over the next two years.

Recent tax increases passed by the Legislature over my vetoes were based on hypothetical numbers that don't add up because tax revenues will not meet their projections.

While I have been trying to negotiate fair labor agreements for our public employees, the public union leaders have not yet come to grips with the severity of the budget crisis. They need to work together with us to help overcome the financial challenges we face as a state.

The lower Council on Revenues' projections clearly show we all must share in the sacrifice today, in order to ensure a prosperous future. 

Mahalo. This is Governor Linda Lingle.