Aloha State News

As Gov. David Ige's (D-HI) administration looks to decrease next year's state operating budget by $600 million, union leaders are warning it could means staff cuts and program eliminations.

The Ige administration has asked state departments to cut plan on having their budgets cut anywhere from 10 to 20%. 

The Hawaii Government Employees Association (HGEA) executive director, Randy Perreira, addressed his members about the bleak outlook in a video message last month.

State Rep. Sylvia Luke (D) | photo curtesy capitol.hawaii.gov

"Guys, I hate to say it, but the revenue picture is so bad that absent of any additional federal help, we likely face the prospect of both furloughs and layoffs," said Perreira in the message reported by Honolulu Civil Beat. 

The state is faced with a budget crisis sparked by the COVID-19 pandemic and a shutdown to Hawaii's tourism industry. Gov. Ige has already used money from the "rainy day" budget and sold $750 in general obligation bonds to help pay for state government operations. They've also proposed two-day furloughs each month for union state workers, something union leadership doesn't agree with. Gov. Ige believes those furloughs could save about $300 a year. 

State Rep. Sylvia Luke (D), who serves as the House Finance Chair, believes freezing positions as state workers retire would be a way to save at least $130 million. Luke explained that would only happen if roughly 2,200 of the 6,600 workers eligible for retirement do retire. She believes there could be even more people who decide to go that route since there's been more people than usual asking about retirement.

"I think one-third is pretty realistic," Luke told the Honolulu Civil Beat, "it might actually end up being half."

Luke said they won't know how many people decide to go that route and which jobs they'll be leaving until a few months into next year's legislative session.