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The first paragraph says it all. "Hawaii lawmakers are planning a press conference this morning to announce they will return to the state Capitol on Monday to get back to work, and their primary mission is to find ways to cope with a looming budget shortfall and prevent furloughs and pay cuts for public workers."
The ideas are weak.....
Borrow from the Fed - to be paid back later
Issue bonds to fund pension obligations - to be paid back later
Long story short is the politicians have potential for lifetime employment, and none want to ruin that by supporting paycuts. Instead, they'll force the governor to be the "bad cop", while they continue to make up nonsensical "solutions". Then when he's forced to go ahead with the paycuts, much like lingle had to do, he's the one to fall on the sword. Like I mentioned earlier, the balanced budget is bull**** if they can just borrow money to "balance" it. But yeah, maxing out the state's credit cards to pay state workers is a great idea.
Quote:
Originally Posted by whtviper1
The ideas are weak.....
Borrow from the Fed - to be paid back later
Issue bonds to fund pension obligations - to be paid back later
Hope they can use the CARES money.....
Cares money can be used only for virus specific stuff, from what i believe.
Cares money can be used only for virus specific stuff, from what i believe.
That's true - they are hoping for an exemption - of course, if you use that - how are they going to pay unemployment and other things they need to deal with.
wow.... that's 1.2B more than the leg projected and 0.7M more than the governor projection. we're screwed.
It should be noted the Council of Revenue number isn't just a suggestion - it is the number that feeds the state budget. Legislature will need to take action.
I wonder if we're due for a bond downgrade soon. Hawaii had a rating upgrade at the end of 2019 to AA+. That was the highest rating in state history. We are on watch with the credit agencies already and prolonging the lack of action is going to ensure a downgrade.
“At this point, they are now suggesting that furloughs of up to three years would be necessary, potentially 40 percent in the first year -- which would be two days a week -- and then 20 (percent) and 20 (percent) in the next years,” said Randy Perreira, the HGEA’s executive director.
I can tell you - the 40% is meant to scare you. 20% is realistic. 10% cut is achievable with all the supplemental budget requests taken off the table - some accounting tricks - some bonds (more debt) - and using the entire rainy day fund. There isn't a budget model that has no pay cuts (at this time). As a reminder - you don't stop things like construction projects to save money - those are special funds and by law will proceed. Salaries are paid by General funds.
“At this point, they are now suggesting that furloughs of up to three years would be necessary, potentially 40 percent in the first year -- which would be two days a week -- and then 20 (percent) and 20 (percent) in the next years,” said Randy Perreira, the HGEA’s executive director.
I can tell you - the 40% is meant to scare you. 20% is realistic. 10% cut is achievable with all the supplemental budget requests taken off the table - some accounting tricks - some bonds (more debt) - and using the entire rainy day fund. There isn't a budget model that has no pay cuts (at this time). As a reminder - you don't stop things like construction projects to save money - those are special funds and by law will proceed. Salaries are paid by General funds.
Would the students then have a three day school week? Even if that was the case, my wife working only three days and only being compensated for those three days, we still have my pension. Now I can’t speak how other teachers would be able to afford the pay cut, especially in more expensive parts of Hawaii. Hawaii has a teacher shortage now? They really will if that is implemented. That is one of the reasons why we are living on the Hilo side. Housing is much more affordable and My wife isn’t going to want to teach forever and will be just living off my pension. Lot easier paying down a house for $250,000 than $500K or more.
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