WAIKAPU - Gov. Linda Lingle warned of more cuts to state programs in the face of a staggering budget deficit, and touted her plan to stimulate the economy by expediting infrastructure projects.
With revenues coming in lower than expected, the state is facing an estimated $1.8 billion shortfall over two years, and Lingle said she anticipated the Council on Revenues would lower its forecasts even more at its upcoming meetings later this spring. While social service agencies have protested drastic cuts to mental health services and the elimination of programs like Healthy Start, Lingle said the cuts were necessary to balance the budget.
"Nobody in my administration has any glee about cutting education or mental health or anything else," she said.
Lingle spoke at the Maui Chamber of Commerce Governor's Luncheon at the King Kamehameha Golf Club.
Lingle also made a point of defending her position on the ceded lands issue, saying it was her duty to all residents of Hawaii to defend the state's control of lands handed down from the Hawaiian monarchy.
Lingle has appealed to the U.S. Supreme Court a decision by the Hawaii Supreme Court that the state cannot sell ceded lands until claims by Native Hawaiian groups have been resolved.
While the state's mandate for ceded lands includes using them for the betterment of Native Hawaiians, it is also called upon to use them for other purposes that would benefit all Hawaii residents, she said.
The appeal wasn't about Hawaiians' "moral claims," but to resolve legal questions over the state's clear title to the lands, she said.
"Nobody likes to have demonstrations against them," she said. "But this is the right thing to do for all the people of Hawaii."
Lingle offered a bleak picture of the state's fiscal situation and the economy.
"We don't know what the Council on Revenues will do in March and May, but we can guess it won't be good," she said.
The potential for the state to get money from a federal stimulus package is a "wild card," she said.
Lingle warned Maui business leaders not to expect support from the state Legislature, and to look out for proposals that would increase taxes and fees on businesses.
"I think they view you as a place to get money," she said.
In addition to cutting programs, Lingle said she would look at cuts to wages and benefits for state workers in order to balance the budget. Lingle has already proposed a one-day-a-month furlough for state employees as a cost-cutting measure.
"There has to be some change in what we spend on labor for state government," she said.
She also outlined her plan to stimulate the economy with a focus on accelerating infrastructure projects that have already been funded, a plan that includes $260 million in Maui projects.
Other points in Lingle's plan include:
* A six-year highways modernization plan, including 36 projects on Maui and Molokai, developed in coordination with Wailuku Rep. Joe Souki and Upcountry, East Maui, Molokai and Lanai Sen. J. Kalani English, who chair the House and Senate transportation committees, respectively.
* A "Recreational Renaissance" program in the Department of Land and Natural Resources to improve small-boat harbors, boat ramps and state parks, including 32 projects on Maui, six on Molokai and one on Lanai.
* A Broadband Initiative to create a Hawaii Communications Commission to oversee telecommunications and cable television issues, and work to increase broadband capacity in Hawaii.
* Efforts to reduce fees on businesses, including a surcharge on incoming freight to pay for invasive species mitigation.
"It's not enough to sit back and hope things get better," she said. "You have to make it happen."
* Ilima Loomis can be reached at iloomis@mauinews.com.
