February 2010
Stories:
Senator Kim on the Hot Seat
Task Force on Reinventing Government
Interim of 2009 - Site Visits
Facts about Hawaii's Current Collective Bargaining Negotiations
Commentary
2009 Award Recipients
Sen. Hydrogen Investigation Final Report
Response to DBEDT Investigation
Photos: Active and Involved
Senator Kim on the Hot Seat
Question: Since the Legislature is in session from January through May, what do you do the rest of the year?
Answer: Although the work of a Hawaii state legislator is considered part-time, I am a full-time senator and you can find me in my office almost every day. When the Legislature wrapped up in May, there was still work to finalize the session and recap what we had accomplished. The Legislature passed 251 bills. During that time, we waited for the Governor's vetoes and reconvened in a one day special session to override a record 34 out of 53 vetoes. My work load during the interim included but was not limited to the following:
Question: We continue to read about a growing revenue shortfall and how the Council on Revenues keeps dropping their estimates. What does this mean and who is the Council on Revenues?
Answer: First, let me explain why we have a Council on Revenues. The State Constitution requires the establishment by law a council on revenues which prepares revenue estimates for the state. In other words, this council makes predictions as to how much revenue the state will collect. The legislature and Governor are mandated to utilize these estimates as a basis for appropriating funds and balancing the state budget. We are required to have a balanced budget and unlike the Federal Government we cannot print money.
The Council is composed of seven members (usually economists) who meet four times a year, on or about June 1, September 10, January 10, and March 15. They are responsible for projecting revenues for the State's six year Financial Plan.
Why are we experiencing a growing revenue shortfall? State revenue projections are somewhat of an “educated guess”. These economists often do not agree with each other and commonly end up with a compromised estimate. For the past two years, the Council's predictions have been followed by sharper than expected declines in revenues. The budget shortfall must then be recalculated and the result is an even deeper deficit than anticipated.
Numerous revisions to revenue projections made initially by the Council on January 10, 2008 have resulted in major losses in anticipated revenue. As of the latest projection made on December 17, 2009, for the period from July 1, 2007 to June 30, 2013, the State has lost $5.5 billion in revenues it had expected to receive. In each of the Council meetings since the January 2008 forecast, the projection has been revised downward.
For more information on the Council and their projections please visit their website at: http://www6.hawaii.gov/tax/a9_1cor.htm
Question: What is your position on the teacher furloughs? Did you support this?
Answer: Contrary to popular belief, the Legislature did not order the furloughs for State employees, including teachers. I did not support the furloughs, especially for teachers and prison guards since I felt it would not be wise or efficient. In fact, earlier in the year at a meeting between public union officials and Legislative leadership, I urged an across-the-board 5% pay cut. However, the Governor continued to advocate for furloughs as her way to address the budget shortfall and even went to court to defend her right to unilaterally impose furloughs. As a result, the Board of Education, the HSTA and the Administration negotiated the furlough days and the membership approved the contract.
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