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Governor: Budget priority for coming year

January 23, 2013
By ANITA HOFSCHNEIDER , The Associated Press

HONOLULU - Gov. Neil Abercrombie said the state budget is his top priority for this coming year, in addition to energy and education.

The governor detailed his priorities during the annual State of the State address to lawmakers at the state Capitol on Tuesday.

"We have now turned a fiscal corner," he said, saying that the state's finances are stable compared to two years ago.

Article Photos

Gov. Neil Abercrombie gave his State of the State address at the state Capitol on Tuesday. Sitting behind the governor was Lt. Gov. Shan Tsutsui, the former Maui state senator.
The Office of the Governor photo

He said the government must now take care of pension deficits and other unfunded liabilities.

Abercrombie wants to budget $100 million for retirement benefits, specifically those categorized as Other Post-Employment Benefits. He also wants to reinvest in emergency funds.

Abercrombie said pay reductions for state workers will end in July. Employees took a 5-percent pay cut in 2011 following the state budget crisis.

The governor also wants to stimulate the economy through construction investments. He said he had asked Lt. Gov. Shan Tsutsui to take the lead on this initiative.

In addition to fiscal measures, Abercrombie is establishing a task force to research Hawaii's energy options and wants to amend renewable energy tax credits.

He also wants to implement a new preschool education program, increase the minimum wage by $1.50 and improve environmental protections. The governor's budget proposal includes about $31 million for early childhood education over the next two years.

House Minority Leader Aaron Ling Johanson called Abercrombie's speech "a good, ambitious agenda" but questioned the funding source.

"A measure of fiscal prudence is in order," he said.

Lawmakers also questioned the feasibility of the governor's preschool education plan.

House Majority Leader Scott Saiki said the program may require a constitutional amendment before it can be implemented. Senate President Donna Kim agreed.

The Hawaii state constitution says that the government can't fund private educational institutions - which rules out school voucher programs.

Kim said that the state would have to review the needs of existing K-12 programs before committing to a new preschool venture.



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