Article Photos

WAILEA - Gov. Linda Lingle on Friday took jabs at the Maui County Council and Maui's state legislators over decisions they've made during these dire economic times.

Speaking to members of the Maui Chamber of Commerce at the Fairmont Kea Lani in Wailea, Lingle said the Maui County Council should not have reduced funding by $500,000 to the Maui Visitors Bureau in this upcoming budget year. She argued that the state needs to attract as many visitors as possible to the islands, and tourism is the "quickest, reliable way" to bring money to Maui.

"This is inexplicable. . . . It's the wrong thing to do at the wrong time," she told around 200 people at the chamber's 2009 Annual Installation Luncheon.

"If I were a council member today . . . I would increase our spending by one million dollars," she said to applause.

Lingle, a former Maui County Council member and Maui County mayor, noted that Mayor Charmaine Tavares opposed the decrease in funding. The council reduced funding in the county's 2009-2010 budget because of concerns about declining revenue and the state's ongoing economic downturn.

Maui's legislators this past session have voted to increase taxes, such as the conveyance tax and a per-barrel tax on petroleum products, said Lingle, a staunch opponent of increasing taxes.

Lingle has a deadline Tuesday to list her intended vetoes. Legislators will go into a special session July 15 to override vetoed bills, although not necessarily all of them.

Lingle said increasing taxes such as the barrel tax, which lawmakers are proposing to hike from 5 cents to $1.05, will take away $15 million to $17 million from residents who will be paying more at gas pumps.

But lawmakers have said the increase could raise around $31 million and pay for alternative energy projects and food safety programs.

Lingle asked people to call their legislators if they oppose the tax increases.

Not far from Lingle's mind on Friday was her three-days-per-month furlough plan of state workers to help offset most of a projected $730 million state revenue shortfall through June 2011.

The furloughs begin next month, although the plan is being fought in court by the Hawaii Government Employees Association, United Public Workers and the Hawaii State Teachers Association unions. The forced unpaid days off could impact 15,600 state workers who are under the direct control of the governor.

The governor cannot order furloughs for the 32,000 employees at the semi-independent Department of Education, University of Hawaii and Hawaii Health Systems Corp. But Lingle has pledged to cut appropriations to those agencies in the amount that would be saved by the furloughs.

Lingle stressed many times in her remarks that furloughs cannot be avoided during this historic, unprecedented, recession.

"This is a time it can't be business as usual," she said.

In response to critics saying Lingle is trying to balance the budget "on the backs of state workers," Lingle said the furloughs will only help with a quarter of the deficit and not all of it.

She said the state workers paychecks and benefits make up 70 percent of the state's operating budget, and she has already cut other places in the budget.

Lingle said that if her furlough plan doesn't go through, she will be forced to lay off workers, although she doesn't want to. However, she was somewhat optimistic Friday that her furlough plan will allowed to proceed.

"We think we have a great case. (But) you know my record with the Supreme Court is not great," Lingle said to laughs, alluding to cases the state has lost in the high court.

The HGEA motions will be argued Thursday in Circuit Court in Honolulu. The court hearing also will address concerns by the other public employee unions.

In response to questions from the audience, Lingle said furloughs cannot be avoided by just raising the general excise tax, because that tax would clearly "break the back" of small-business operators, forcing them to lay off more people.

"Taxes will delay the economic recovery, making it harder for businesses to get on track," she said.

She added that federal economic stimulus money has already been used to help offset the budget woes.

Maui News Publisher Joe Bradley was installed as new chairman of the Maui Chamber of Commerce. He replaces Carole Kooy. Twenty-four other business members were also installed as board of directors.

Bradley called for cooperation between Maui businesses, suggesting chamber members participate in the organization's member-to-member discount program as well as having a "staycation" on Maui this summer and patronizing the local visitor industry rather than traveling elsewhere.

"This year will be member helping member, business helping business, and neighbor helping neighbor," he said.

* Melissa Tanji can be reached at mtanji@mauinews.com.