Governor Neil Abercrombie says a recent fiscal crisis has been averted, but that more trouble looms ahead. Additional cuts and restructuring are underway.
The governor gave a speech providing a progress report on his "New Day" plan. Afterward details were released on how another $100 million in general fund savings will be accomplished.
The governor invited lawmakers, department heads and others to Washington Place to hear his report card on progress so far on the New Day vision outlined in his campaign for the office and in his first state of the state speech
"Our canoe didn’t huli. Instead in the first half of 2011 we stabilized our financial situation," Abercrombie says.
He announced a planned restructuring of executive branch positions that includes the budget director as chief financial officer and the head of DAGS as chief operating officer
"There’s a lot of foundation that needs to be made, a lot of approvals that need to be secured by the legislature," says State Budget Director Kalbert Young.
"A number of us came from the private sector and so we’re really bring that kind of thinking into government," says Bruce Coppa, D.A.G.S. director.
The governor said the budget is balanced after overcoming a more than $1.2 billion biennium deficit first forecast before a combination of spending cuts and tax hikes and said for the first time in three years the new fiscal year started in the black.
Some lawmakers saw that differently
"It’s only because we drained a lot of money from the hurricane fund, the rainy day fund, and several other funds," said Rep. Barbara Marumoto."But we still have a backlog, a shortfall, of maybe a billion dollars….revenues just have not been coming in the past couple years."
The governor said he plans to start replenish the special fund balances, and outlined three New Day plan goals including jobs, investment in education, and more government efficiency. but he said many threats are on the horizon including unfunded pension and health liabilities.
"Years of putting off tough decisions have finally caught up with us. Our liabilities are looming and the bill is now due," Abercrombie says.
The administration also posted a list of cuts to fulfill an additional $50 million in general fund savings required by the budget bill.
most savings come from state employees paying 50 percent of their healthcare premiums instead of 40 percent, and because no new bonds were issued in fiscal year 2011.
Of the remaining cuts departments most affected include education, human services, health and the University of Hawaii.
And you can hear more from the governor on Wake Up 2day tomorrow morning.
See the original article at: KHON2 Local News
