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The Honolulu Advertiser
Updated at 4:34 p.m., Friday, May 1, 2009

Lawmakers agree on budget that cuts spending, vacant state jobs

Advertiser Staff

State House and Senate budget negotiators agreed today on a state budget that cuts general-fund spending by about $800 million over two years and eliminates about 200 mostly vacant state jobs.

The budget draft, which passed out of conference committee this afternoon, now goes to the full House and Senate for approval.

"We had to make the tough choices, no doubt about that," said state Rep. Marcus Oshiro, D-39th (Wahiawa), one of the lead budget negotiators.

Overall, the operating budget is $10.8 billion in fiscal year 2010 and $10.5 billion in fiscal year 2011. The general-fund portion of the budget, over which lawmakers and the governor have the most control, is $5.1 billion in 2010 and $5.3 billion in 2011.

Gov. Linda Lingle recommended about $200 million less in general-fund spending each year in her budget proposal in December, but lawmakers cut an additional $217 million in 2010 and $196 million in 2011 for roughly $800 million in total reductions.

Of the 200 state job cuts, all but 10 are vacant positions. The 10 filled positions eliminated are all exempt, non-union jobs. The budget does not contain any wage or benefit cuts to state workers because of the ongoing labor talks between Lingle and public-worker unions. Lingle hopes to save $278 million in negotiations.

Lawmakers would have had to make significantly deeper general-fund spending cuts without $942 million in federal stimulus money approved by President Obama and Congress.

The spending and job cuts would be used in combination with tax increases, the tightening of tax credits, and the diversion of money from special funds to close the state's budget deficit.

Lingle has said she would veto state income tax increases on the wealthy and an increase in the hotel-room tax.