Posted on 10:43 am, Monday, March 1, 2010. Tags: furlough, hspls
MEDIA RELEASE
The Hawaii State Public Library System will change its furlough days from the usual Wednesdays to Fridays during March 2010. All public libraries and administrative offices will be closed on March 5, 12 and 19.
In addition, six public libraries normally closed on Fridays – Aiea, Hawaii Kai, Kaimuki, Liliha, Manoa, and Makawao (Maui) – will be closed on March 4, 11, and 18. On Friday, March 26, all libraries will be closed in observance of the Prince Kuhio Day Holiday. Please visit www.librarieshawaii.org or call your local library for more information.
Linda Smith, the governor’s senior policy advisor, has refuted statements made by Board of Education (BOE) Chair Garrett Toguchi and again called on the BOE and Department of Education (DOE) to move forward on presenting her plan to the Hawaii State Teachers Association (HSTA) to use $50 million from the Rainy Day Fund to re-open schools for all but three of the remaining furlough days this semester and next school year.
Toguchi’s statement on Saturday that, “if she (the governor) wanted to, she could take her proposal to the HSTA herself,” is inaccurate.
Under Hawaii’s collective bargaining law – HRS Section 89-6(d)(3) – the governor cannot act alone in presenting a formal proposal to the HSTA. The governor must have the vote of either the Board of Education or the Department of Education, or both, in order to make a formal proposal.
Similarly, Toguchi’s contention that an agreement between the HSTA, DOE and BOE is already in place is inaccurate because by the same law there can be no formal agreement without the governor’s vote.
Gov. Linda Lingle has said she will not agree to the HSTA/BOE/DOE’s Dec. 28 proposal to use nearly two-thirds of the $50 million Rainy Day funds to restore only seven furlough days this semester and none next school year.
In addition, neither Lingle nor anyone on her staff or negotiating team has received the letter Toguchi claims he sent last week.
“We are once again calling on the Board of Education and Department of Education to stop stonewalling and to move forward on our reasonable plan to use up to $50 million in Rainy Day funds to return our children to the classroom and end the furlough situation immediately,” said Smith.
On Jan. 8, the governor proposed a new plan to use $50 million from the Rainy Day Fund to return students to school for 24 of the 27 furlough days. Since then, two more furlough days (Jan. 15 and Jan. 29) have passed, keeping students and teachers out of school.
Under the governor’s latest plan, up to $50 million from the Rainy Day Fund would be used to restore 12 furlough Fridays – five this semester and seven in the 2010-2011 school year. An additional 12 instructional days – two this semester and 10 in the next school year – would be gained by using days when teachers are paid to be in their classrooms but do not teach students.
By solving the furlough issue immediately for this semester and next school year, teachers and students would be able to focus on the lessons in the classroom, rather than being distracted by drawn-out furlough negotiations.
The Hawaii State Public Library System (HSPLS) has completed negotiations with the Hawaii Government Employees Association (HGEA) on a Supplemental Agreement for the Fiscal Biennium (2009-2011).
The Hawaii State Public Library System implemented “Furlough Days” beginning on this week.
According to the HSPLS-HGEA Supplemental Agreement, all full-time HGEA employees within HSPLS will be placed on unpaid furlough for 15 days in fiscal year 2010 (Dec. 1, 2009-June 30, 2010).
In addition, all full-time HGEA employees within HSPLS will be placed on unpaid furlough for 15 days in fiscal year 2011 (July 1, 2010-June 30, 2011). A schedule of these furlough days will be announced at a later date.
Following is the schedule of Library “Furlough Days” for the remainder of fiscal year 2010; all public libraries and administrative offices will be closed:
Plan would ensure there is no classroom time lost for the period of January 1, 2010 through June 30, 2011.
(current furlough schedule continues through Dec. 31, 2009)
27 Fridays of class time will be restored over 1 ½ years beginning Jan. 1, 2010.
How this would be accomplished:
1. Use 15 non-classroom days (between Jan. 1, 2010 and June 30, 2011) when teachers are paid but do not teach classes to restore all teaching days lost on Furlough Fridays beginning Jan. 1, 2010.
(For those teachers who work on a 12-month schedule, a comparable adjustment would be made.)
2. The cost of restoring the remaining 12 days would be achieved by using money out of the Emergency Budget Reserve Fund (Rainy Day Fund).
Estimated cost to Rainy Day Fund would be $50 million.
7 furlough days+15 Fridays replace non-instructional days+12 days paid by Rainy Day Fund=34 days (original # of furlough days)
Advantages of this plan:
1. It allows us to refocus on improving the quality of instruction in our public school system, including putting together a competitive plan to position Hawai‘i to compete for additional federal education funding, such as Race to the Top.
2. It restores stability to the school year and eliminates the disruption that has occurred to family schedules.
3. It reflects a shared approach to addressing this matter—some furlough days, teachers contribute their non-instructional time, and the State provides some additional compensation to cover the remaining days.
4. It enables the state’s political leaders and businesses to focus on growing our economy and our quest to achieve energy independence and security.
Note: The following transcript is from the second half of a news conference in which Governor Lingle first provided an update on her recent trip to China to promote tourism, international trade and clean energy partnerships, then discussed a plan to return children to class by restoring instructional days. The news conference can be viewed at www.hawaii.gov/gov.
Even though the (China) trip was hugely successful and I was gone for two weeks, I was in touch here at home throughout that time. I was especially concerned about the furlough issue lingering on, about the need for a solution and the need to break the status quo, so I’ve been working throughout the weekend with my team to put together a plan to deal with the furlough issues.
This plan, starting January 1, 2010, would eliminate all furlough Fridays for the rest of the contract period. It’s very straightforward – made up of two basic parts:
Number one is that over the life of the contract, starting January 1, the teachers would take 15 non-instructional days and we would turn them into instructional days on Fridays. So days that they now have for preparation, workshops or a teacher institute would transfer to a Friday and they would become a teaching day. There would be 15 of those days.
In addition to that, I would pledge with the Legislature to use the Rainy Day Fund to fund 12 days – 12 Fridays being restored that way.
So between the 15 non-instructional days becoming teaching days, plus 12 days paid for by the Rainy Day Fund – that’s 27. The remaining seven days would be carried out this year.
So the furloughs that were in place when we began this program through December 31 would go on as planned. So if you add the 15 non-instructional days becoming instructional, the 12 Rainy Day-funded days, plus the seven furloughs, that’s 34 days and that is the amount that was contemplated in the entire two-year (HSTA) contract.
I want to talk about some of the advantages of this plan and why it should be implemented. It allows us to get our focus back on improving education – on the quality of education – rather than on simply the quantity of education. I think this is a very important distinction to make. While it is important to have classroom time, it’s also important to have successful classroom time. If you’re in a classroom more, we should be doing better as a state and we should start to move up in the rankings nationally.
I want teachers, parents, educators, business people to start to focus more on what we produce on the days we’re in school, not just how many days are we in school. This plan allows us to do that.
Secondly, this plan would restore stability to the community, to the families who have been disrupted because of the (furlough) Fridays – they picked one Friday at a time, rather than all the furloughs taken at one time or rather than non-instructional days being used. It’s also an advantage because this plan represents a shared sacrifice on everyone’s part. The seven furlough days that the parents, students and the community dealt with, the 15 days that the teachers will now teach, and the remaining 12 days that will be funded from the Rainy Day Fund.
Finally, this plan enables the state’s political and business leaders to get focused on growing the economy, on economic development, and on achieving our quest for energy independence and security.
I’m happy to answer any questions you might have about China, furloughs or anything else. I should also mention I leave again tomorrow morning for the Republican Governors Association. I’ll be gone until Thursday night, but my team is standing by to begin to negotiate with HSTA, HGEA, talk with Legislators, to meet with the Board of Education and the Department of Education. So my being away shouldn’t stop us all from moving forward this time, now that there’s a specific proposal on the table.
With the use of the special fund, would it be immediate or something you guys could do in session?
It’s possible that it could be immediate if there was a special session called. It’s something I would consider if we had a consensus before going into the special session. So, for instance, if the legislators believe this is a good plan and want to do it now, I would be willing to call them into special session.
If they are not able to reach a consensus among their members over the next few days or the next couple of weeks, then it’s something I think we could do next year, certainly. I’m prepared to do it now.
But you’re not calling them back in? You’re waiting for them to say they endorse the agreement before you do that?
Yes, I would be willing to call them in but I’d like to hear from the leadership that they at least have a consensus among them.
And the non-instructional days would require the re-opening of the contract with HSTA, but you also mentioned HGEA and UPW, do you envision all three – I think it’s unit 5,6 and 1 – signing?
I think it’s really HGEA mostly, and HSTA. There may be some UPW involvement but yes, the contract would have to be re-opened, whether it’s re-opened in the sense of a supplemental agreement or an amendment rather than a whole re-writing, there would have to be changes made to what was previously agreed to. It would have to be agreed to by the HSTA and HGEA at least.
How much would you take from the Rainy Day Fund?
I’m looking at approximately $50 million.
And the 15 instructional days that you would convert to regular days, are there still 15 instructional days available next …?
Over the next two years, there are well more than 15 non-instructional days if you count the Wednesday where everyone goes home, there are many Wednesdays in the school year plus any given year has two to three workshop days. They have professional development days, there are teacher institute days, some schools have waiver days, so if you put that together with the Wednesdays, there is certainly enough time.
If people are committed to finding a compromise, consensus solution, this is it. It is possible. Both components of this plan are possible. It’s up to the parties to agree to them.
You had said previously that you were not inclined to look at special funds until at least the end of this quarter, perhaps the end of the first quarter of the new fiscal year. What changed that thinking and convinced you not to stick with it?
Two things happened. One was watching it from afar (from China) everyday. It seems it’s all that people are talking about or thinking about in Hawai‘i. We need to get re-focused on the economy, on job creation, on economic development and on energy security. I felt keeping the bigger picture in mind was more important at this point to move us forward as a state.
So I was looking for a compromise. I also had a visit yesterday from Senator Taniguchi, who talked about the possibility of a special session versus waiting for it. He made some really good points that I discussed with my team. We were here most of yesterday. I felt he made a really compelling case. It depends now on whether we can get a consensus from the Legislature.
He made the case for a special session?
Yes.
Has this been prompted at all by what the Education Secretary had announced this past Friday or Thursday?
No, it wasn’t prompted by that at all but since you brought that up, I was very surprised by his remarks. I thought they were blatantly political. I think everyone else involved in the process has really had the kids’ best interest in mind here.
I think him involving himself in a local issue like this was not appropriate and the comments he made were not factually correct. He said that this would influence our ability to get Race to the Top funds, but in all of the criteria for Race to the Top funds, there is never a mention on the length of the school year. My staff has been in on those conference calls from the very beginning on how we would be judged and how we would qualify for Race to the Top. This has never been an issue at any point.
I think he should not involve himself in local issues here. He should take our application when he receives it; and on the face of it, he will recognize that we’re meeting the criteria that he set out on a national level.
And the plan to get the children back to class. What needs to happen? You need to amend or change the contract? You’ve got to get HGEA, HSTA and maybe UPW to agree?
I can outline a way I think – a path forward. I think a path forward is for the Legislature to reach a consensus about the Rainy Day Fund. If they do that and we can get it to a special session, we can do it very quickly because we reach resolution on that, there can get a proviso on that piece of legislation that says this money becomes available to restore days if these 15 instructional days are agreed to by the appropriate union contracts. I think that would probably be the path forward.
What kind of timeline are you looking at? Obviously with this plan it says by next year – I don’t know when the next non-instructional day would turn into an instructional day. Here we are in the middle of November. They would need to wrap up and agree to this plan pretty quickly…
Well it’s not a complex plan. It’s very simple. It’s very straightforward. I think you would agree as someone who is writing this down. It has two basic parts to it. You know who the parties are. People just have to make a decision. Are they willing to compromise?
Is this debate, is this dilemma we’re in, about the students or is it about the teachers? Is it about the students or is it about the politicians? If it’s about the students, this plan works. It’s a shared sacrifice. It says the community gave up these seven furlough days. It says the teachers are now going to be treated differently. People who work in schools are going to get more salary than people who are outside because they are getting resorted about 2.5 percent of their salary. They had about an 8 percent (salary reduction); this would reduce it by approximately 2.5 percentage points.
They gain something, they give up something. The students gain everything and if this is about students, this plan works and it should be adopted and there’s no reason for delay.
What would you say to the social service providers who asked for the Rainy Day Fund last session. They waited until the very end of the session and were told – tearfully, I remember, by one lawmaker – that the money’s just not there. That we have to save it in case the budget deficit gets worse. Now you’re going to take $50 million out of that fund.
Well I would say it’s very fortunate that we saved the money because it’s raining on the kids now. It’s a perfect time for the Rainy Day Fund to be used.
How confident are you? What do you think the response will be from the unions – from HSTA and HGEA?
Well, what I’m hoping for from the unions and from legislators is that they give it serious consideration – that they really think about it, that they explore alternatives, they line up what would be the possible options, and if they recognize that for right now, this is the very best solution to getting the kids back in the classroom, getting education refocused on quality instead of just quantity.
Governor, could I ask you about the layoffs? (Budget Director) Georgina (Kawamura) said there’s about a $500 million shortfall even after these layoffs. Do you think the state will have to layoff more people?
I think it’s too early to answer that question right now. It’s important to watch our revenues month by month. As you know, we operate on a projected budget. It’s not actual dollars in the bank. It’s what we project we will collect over the next year and a half. The revenue picture is very important. That’s why we publish every month where we’re at.
Right now, we’re at 10.9 percent down on the base that the Council on Revenues had projected at 1.5. Through the first quarter, we were at 9.7, now we’re at 10.9. It depends how that, hopefully, starts to level out through the year. Clearly, we will be working on budget issues up until the last minute we have to submit this budget to the Legislature.
My point is that number is going to fluctuate a bit but clearly there is still a big gap for us to fill.
One more question regarding the furloughs. How are you going to present that? Are they supposed to call you?
Today, my staff spoke with the head of the Board of Education and the Department of Education – Garrett Toguchi and Pat Hamamoto. I spoke personally with Dwight Takeno from HSTA. I met personally with Brian Taniguchi. I spoke to him by phone again this morning. I left messages for Senator Hanabusa and Speaker Say. I think the Speaker’s in China. I’m not sure when he gets back, but I left word so they’re aware of it.
I think Senator Taniguchi, because he’s heading up that committee that they have looking at the issue, is an important person and he’ll be sharing it with his colleagues I’m certain. So I will wait to hear back from the Legislators on this.
Will you come together and meet?
I think once the legislators feel they have a consensus among their members, I’m willing to call them into a special session and get it done in a minimum number of days. If we have an agreement in advance, we can go in and get it adopted. I think a proviso saying these funds can be used if this occurs on the union side. The reason for the proviso is – this whole fiscal situation has to be a shared sacrifice. Everybody has to give up something. That’s what this plan represents.
Do you have any date out there as to when you would like to see the compromise?
The sooner the better. As I said, I’ll be gone until Thursday night. I’ll be back here on Friday. Hopefully by then we will have some good word from them.
I am pleased that HGEA members ratified the agreement reached between their union leadership, the state and county governments. They recognized that the type of shared sacrifice embodied in the agreement is necessary to help see our state through the unprecedented budget crisis we are experiencing.
State and county employees work hard and serve the public well. These furlough days are not a reflection of their dedication, but instead demonstrate their willingness to help mitigate our state’s current fiscal reality.
By working together to develop common sense solutions, the state, counties, and our dedicated employees are working toward an improved economic environment.
Reaching this settlement is significant for our employees and the entire state, so that we can move forward with important projects and initiatives that will spur our economic recovery.
Mahalo.
The Governor’s Weekly Radio Address airs at various times throughout the week on radio stations statewide. To listen to this week’s address or to hear past addresses, visit the Governor’s Web site at www.hawaii.gov/gov/news/radioadd
Following the ratification by Hawaii Government Employees Association members of a new two-year contract, Gov. Linda Lingle this week announced details of a plan that calls for two furlough days per month for the next 20 months for state employees.
To minimize the impact on the public, most state offices will close all or portions of their operations on two specified Fridays per month.
The Leiopapa A Kamehameha State Office Tower, like other state office buildings, will close two business days per month.
Under the plan, in accordance with the new HGEA contract, full-time state employees under the governor’s jurisdiction will be placed on furlough for 18 days through June 30, 2010; and 24 days of furlough for fiscal year 2011, starting July 1, 2010 through June 30, 2011. Part-time employees will be placed on furlough on a pro-rated equivalent basis.
The furlough plan applies to HGEA employees in the Executive Branch including 16 state departments and their attached agencies. In addition, the plan applies to non-union “exempt excluded” employees in the Executive Branch.
Exempt excluded employees who have been taking three furlough days per month since Sept. 16, will now conform to two furlough days per month as reflected in the new HGEA contract.
“Our focus in developing the furlough plan was to ensure State government offices continue to provide the best possible service to the public under the current fiscal circumstances,” Lingle said. “I have every confidence that our dedicated state employees will do whatever they can within their operations to minimize disruptions in services. We appreciate the public’s understanding and patience as our employees make the necessary adjustments in their work schedules.”
All courts and administrative operations of the Hawaii State Judiciary, with the exception of the Juvenile Detention facility, will be closed while employees are on furlough two days each month, effective November 2009.
A calendar of furlough days from November 2009 through June 2010 is posted on the Judiciary’s Web site at www.courts.state.hi.us
The Hawaii Supreme Court has ordered that, for purposes of calculating time, each furlough day be treated as a Saturday or Sunday. Therefore, a person who has a document due on a furlough day may file the document on the next business day.
“The decision to furlough employees and close courthouses statewide was a very difficult one for me, but one that had to be made in light of our state’s current economic crisis,” Chief Justice Ronald Moon said. “I am confident that our judges and employees will do their best to minimize the inconvenience to the public, however, court users should anticipate some delays and changes in services.”
The Judiciary coordinated its furlough schedule with certain agencies, including the Department of Public Safety, as services such as security and transport of persons held in custody by deputy sheriffs are needed for court operations.
The Department of Education’s furlough schedule was also considered to accommodate parent-employees.
The Judiciary’s website offers users the option of transacting some types of court business online, thereby eliminating the need to go to a courthouse. Online users may pay fines and fees for traffic infractions, research case information, and obtain court forms.
HONOLULU – Following the ratification by Hawai‘i Government Employees Association (HGEA) members of a new two-year contract, Governor Linda Lingle today announced details of a plan that calls for two furlough days per month for the next 20 months for state employees that will start on Friday, October 23, 2009. To minimize the impact on the public, most state offices will close all or portions of their operations on two specified Fridays per month (See attachment B).
Under the plan, in accordance with the new HGEA contract, full-time state employees under the Governor’s jurisdiction will be placed on furlough for 18 days for the remainder of fiscal year 2010, beginning October 23, 2009 and continuing through June 30, 2010; and 24 days of furlough for fiscal year 2011, starting July 1, 2010 through June 30, 2011. Part-time employees will be placed on furlough on a pro-rated equivalent basis.
The furlough plan applies to HGEA employees in the Executive Branch including 16 state departments and their attached agencies. In addition, the plan applies to non-union “exempt excluded” employees in the Executive Branch. Exempt excluded employees who have been taking three furlough days per month since Sept. 16, will now conform to two furlough days per month as reflected in the new HGEA contract.
“Our focus in developing the furlough plan was to ensure State government offices continue to provide the best possible service to the public under the current fiscal circumstances,” said Governor Lingle. “I have every confidence that our dedicated State employees will do whatever they can within their operations to minimize disruptions in services. We appreciate the public’s understanding and patience as our employees make the necessary adjustments in their work schedules.”
While most State offices will close on two specific Fridays each month, some departments and agencies will follow different furlough schedules and remain open to ensure the public is able to conduct business and meet deadlines. These include Hawai‘i Public Housing Authority (Attachment C), Department of Labor and Industrial Relations (Attachment D) and community health centers (Attachment E).
Other offices will maintain their current hours of operations and will stagger or rotate furlough days to minimize impacts on their operations. These include the Office of the Governor, Office of the Lt. Governor, Bureau of Conveyances, Halawa Animal Quarantine Station, Airport Animal Holding Facility, plant quarantine inspections at state airports and harbors, Department of Defense (including State Civil Defense and the Office of Veterans Services), Department of Transportation (H-3 Tunnel operation, freeway lane coning, Zipper lane operation and Freeway Patrol Service; Harbors, Highways and Airports 24/7 operations) and Foreign Trade Zone #9. Small boat harbors and most State parks will remain open to tenants and the public during the furlough days, and conservation and resource enforcement activities will continue under current operations.
Operations that require round-the-clock coverage due to the clientele they serve and responsibilities they handle will remain operational on a 24-hour basis and will stagger or rotate furlough days. These include Kalaupapa, Moloka‘i and Hale Mohalu Hospital operated for Hansen’s disease patients; Hawai‘i State Hospital; Hawai‘i Youth Correctional Facility; correctional facilities and community correctional facilities statewide; and geothermal drilling engineering.
This furlough plan does not apply to the Judiciary, Department of Education, University of Hawai‘i or the Hawai‘i Health Systems Corporation.
The detailed furlough plan and schedule can be found on the Governor’s Web site (www.hawaii.gov/gov). In addition, each department will post modified days/hours of operations for their respective divisions and attached agencies on their web sites.
Members of the public who conduct business with the State should call the appropriate office or check their web sites for specific furlough information.
Join our staff of professional coaches and educators at Kona Aerials Gymnastics as we help fill the school void. We will run a fun filled day of fitness, art, science, math, and English. All groups will explore, contribute, think and learn as they get fit and meet new friends. Our program will help keep our children on task and learning, while adding fitness and art to their learning experience.
How does it work?
The students arrive between 7:30 a.m. and 8 a.m. Our day will start at 8:10 a.m. with an exercise class followed by team building games. We will then divide into age appropriate groups. There will be 40 minute rotations and a lunch break. The classes will finish at 2:30 p.m., pick up by 2:45 p.m. There will be extended care available till 5:30 p.m.
The Cost:
$40 a day: extended care $15 more per day
OR
$575 for all 17 days, $775 with extended care
*You must pre-register. We will be registering students 9 a.m.-1 p.m. Saturday, Oct 3 & 10, on site at Kona Aerials.
When:
Oct 23 Dec 4 Jan 29 Mar 12 May 14
Oct 30 Dec 11 Feb 5 Apr 23
Nov 6 Dec 18 Feb 12 Apr 30
Nov 20 Jan 15 Mar 5 May 7
Where: Kona Aerials Gymnastics Club
(a non-profit organization)
52-550 Honokohau St,
(808) 329-4313/ (808) 987-4491
email: konaaerials@aol.com
Media releases compiled by Karin Stanton/Hawaii247.org Contributing Editor
Gov. Linda Lingle said Thursday she and her cabinet will be working late into the night and through the weekend to plan the next steps following Friday’s court ruling on her furlough plan.
Circuit Judge Karl Sakamoto ruled earlier Thursday that the governor does not have the authority to unilaterally order furloughs for state workers.
The judge found Lingle’s order of three furlough days a month for two years was unconstitutional because changes to worker wages and hours fall under collective bargaining.
Sakamoto also ruled Lingle does have authority to restrict state spending at the state Department of Education and University of Hawaii.
Lingle previously said she would reduce spending at public schools and UH in the equivalent amount to her furlough plans.
Lingle said:
Today’s decision by Judge Sakamoto did not change the state’s fiscal situation. We still face at least a $730 million shortfall that will likely grow larger when year-end tax collections are finalized next week. In addition, the shortfall could grow again when the Council on Revenues meets in September.
While we have already cut $2 billion in spending, the fact is we simply cannot afford the government we have now.
We will be working on two tracks throughout the weekend to close the budget shortfall. We will continue to negotiate labor contracts to achieve the savings we need to secure a balanced budget, as required by our constitution.
We also will be continuing to identify additional savings from all state departments.
I continue to believe that we must approach this unprecedented fiscal challenge with a sense of shared sacrifice in the short-term, while remaining focused on our long-term economic future.
HONOLULU – Governor Linda Lingle today issued an executive order to furlough, effective July 1, 2009, all state employees in the State Executive Branch under her jurisdiction (not including, for example Department of Education and University of Hawai‘i employees) to help close the unprecedented $2.7 billion revenue shortfall projected between now and June 30, 2011.
The executive order, issued under the Governor’s executive authority (including Articles V and VII of the Constitution of the State of Hawai‘i, the provisions of Chapters 37, 89, and 89C, Hawai‘i Revised Statutes and all other applicable authority), details which state employees are affected by the furlough, the number of furlough days/hours, the effective time period of the furlough, the responsibility of individual departments for developing and implementing furlough plans for their departments, and other conditions and requirements relating to how and when furlough days/hours may be taken by employees.
“This is not something we want to do, but something we have to do to balance the state budget and address the unprecedented fiscal emergency we are in due to the projected $2.7 billion revenue shortfall,” Governor Lingle said. “I appreciate the understanding of the State employees who will be affected by the furlough and admire the cooperation they have demonstrated in helping to ensure that state services will continue to be provided when the furlough plan begins on July 1.”
The executive order refers to the furlough plan announced on June 18, 2009, which describes furlough schedules of specific departments and agencies, and includes furlough calendars.
The statewide furlough plan and restrictions on the budget of those departments like the Department of Education over whom the Governor does not have furlough authority will save an estimated $688 million over the next two years, 25 percent of the budget gap the state needs to close, and will avoid having to lay off many state employees at this time. Furloughs will allow the state to continue to provide public services, and will allow employees to maintain their benefits and avoid recruitment and training costs for new employees when the economy recovers.
Since last summer, the Governor has taken a series of steps to close nearly $2 billion of the projected revenue gap, including ordering spending restrictions of 8 percent on all state agencies; eliminating duplicate and inefficient programs; restructuring debt; imposing a freeze on new hires, out-of-state travel and the purchase of new equipment; using special funds and maximizing federal stimulus funds.
On May 28, the Council on Revenues revised its forecast by an additional $730 million shortfall for the remainder of fiscal year 2009 which ends on June 30, 2009, and the two-year budget that begins July 1, 2009 and ends June 30, 2011, requiring the Administration to identify further savings.
Because employee salaries and fringe benefits account for roughly 70 percent of the State’s operating budget, it is now necessary to impose furloughs on state workers to help close the remaining gap in the State’s budget.
The detailed furlough plan can be found on the Governor’s Web site (www.hawaii.gov/gov). In addition, each department will post modified hours of operations for their respective divisions and attached agencies on their web sites.
Governor Linda Lingle today announced details of the Administration’s plan to furlough all state employees in the Executive Branch to help close the unprecedented $2.7 billion revenue shortfall projected between now and June 30, 2011. The furlough plan represents the first time labor costs are being impacted to address the state’s budget gap.
Starting July 1, 2009 and continuing through June 30, 2011, full-time employees in the Executive Branch will be placed on furlough for three days (24 hours) per month. Part-time employees will be placed on furlough on a pro-rated equivalent basis.
The statewide furlough plan will save an estimated $688 million over the next two years and will avoid having to lay off employees at this time. In addition, furloughs will allow the state to continue to provide public services, maintain employee benefits and avoid recruitment and training costs for new employees when the economy recovers.
The furlough plan applies only to employees in the Executive Branch, including the Governor’s Office, Lt. Governor’s Office and 16 state departments and their attached agencies.
The plan does not affect the Department of Education, University of Hawai‘i, or the Hawai‘i Health Systems Corporation. These departments will see their budgets reduced by an amount equivalent to the three-day-per-month furlough, and the management and respective boards of the individual departments will determine how to implement the additional reductions. In addition, the furlough plan does not affect the Judiciary, the Legislature or the Office of Hawaiian Affairs.
“The primary goal in developing the furlough plans for each department was to achieve the required operational savings, while minimizing disruption to public services,” said Governor Lingle. “I recognize the impact the furloughs will have on many employees and their families. This is not something we want to do, but something we have to do to balance the state budget. We appreciate the public’s understanding and patience as our state employees adjust to the new schedules.”
Since last summer, the Governor has taken a series of steps to close nearly $2 billion of the projected revenue gap, including ordering spending restrictions of 8 percent on all state agencies; eliminating duplicate and inefficient programs; restructuring debt; imposing a freeze on new hires, out-of-state travel and the purchase of new equipment; using special funds and maximizing federal stimulus funds.
On May 28, the Council on Revenues revised its forecast by an additional $730 million shortfall for the remainder of fiscal year 2009 which ends on June 30, 2009, and the two-year budget that begins July 1, 2009 and ends June 30, 2011, requiring the Administration to identify further savings.
Because employee salaries and fringe benefits account for 70 percent of the State’s operating budget, it is now necessary to impose furloughs on State workers to help close the remaining gap in the State’s budget. The furlough savings will account for 25 percent of the total of budget savings that the State must achieve to close the projected $2.7 billion revenue gap.
If the furloughs are not implemented, the State would have to lay off at least 2,500 Executive Branch employees to make up for the projected revenue shortfall. Such layoffs could also result in the shut-down of entire programs and services. State executive departments are preparing layoff plans in the event that the public worker unions are successful in blocking the implementation of the furlough plan.
In addition to these layoffs, the Department of Education and the University of Hawai‘i will have their general fund budgets reduced by $278.4 million and $106.8 million, respectively, as part of their share of the labor savings, which could result in additional layoffs.
Under the furlough plan, several departments will close all or portions of operations on specified days. The majority of the closures will take place on Fridays (attachment A).
To minimize the impact to the public, several offices will extend their hours to accommodate the public during furlough weeks. These offices include the Unemployment Insurance Claims Office, Workforce Development Office (job referral and assistance), and Benefit Employment and Support Services Offices (food stamps, financial assistance, child care and related benefit eligibility determinations).
Some departments and agencies will modify their furlough schedules and remain open on certain days to ensure the public is able to conduct business and meet deadlines, such as when tax returns are due to the Department of Taxation, or when public housing rent collections are due to or housing assistance payments are made by the Hawai‘i Public Housing Authority.
A number of divisions and offices will maintain their current hours of operations and remain open during regular state government business hours (7:45 a.m. to 4:30 p.m., Monday through Friday). These include the Governor’s office, Lt. Governor’s office, Department of Defense, Hawai‘i Tourism Authority and Family Guidance Centers. Furlough days will be staggered to ensure public access during normal business hours.
Other agencies and divisions which have hours different from regular government business hours will maintain their current hours of operations and stagger or rotate their furlough days to minimize the impacts on their operations. These include State Civil Defense; Highways, Airports and Harbors Divisions; Natural Resource Conservation and Enforcement; Foreign Trade Zone #9; Information and Communications Services Division (provides state information services, internet and computer support); Public Works Division; Child Welfare Services; Halawa Animal Quarantine Station; Honolulu International Airport Animal Quarantine Holding Facility; Plant Quarantine Inspections; Aloha Stadium; and geothermal drilling engineering.
Operations that require round-the-clock coverage due to the clientele they serve and responsibilities they handle will remain operational throughout the year on a 24-hour basis. These include the Kalaupapa, Moloka‘i and Hale Mohalu Hospital operated for Hansen’s disease patients, Hawai‘i State Hospital, Hawai‘i Youth Correctional Facility; and correctional facilities and community correctional facilities statewide. The furlough plans and schedules for personnel working at these facilities are still being finalized.
The detailed furlough plan can be found on the Governor’s Web site (www.hawaii.gov/gov). In addition, each department will post modified hours of operations for their respective divisions and attached agencies on their web sites.
Gov. Linda Lingle and Lt. Gov. James ‘Duke’ Aiona will take a pay cut under a new law that takes effect July 1, as part of a broader effort by the state’s top officials to lead by example during the ongoing fiscal crisis stemming from the global economic downturn.
The new state-mandated pay cuts also apply to legislators, judges as well as other senior officials, and will remain in effect through June 30, 2011.
These pay cuts for state leaders come as furloughs begin July 1 for all state government workers, who would be expected perhaps for the next two years to stay home without pay three days a month.
The furloughs will also apply to Aiona, Lingle and senior officials in the Administration.
The state’s first ever furlough is part of a cash-saving move ordered June 1 by Lingle, who is required by law to balance the state’s budget.
State employees number approximately 46,000 and their wages and benefits account for 70 percent of the state’s budget.
The cash-saving furlough move is intended to help solve the projected $730 million budget shortfall facing the state between now and June 30, 2011.
The Administration estimates the furlough plan will save the state $688 million over two years. The other $42 million would be saved by scaling back the free health insurance benefits that the state now provides to low-income adults.
The furlough plan was prompted by a projected loss of $2.7 billion in state revenue.
This is money that the state believed it would receive in taxes this year and in the coming two years that will not materialize, according to the Council on Revenues.
Key steps the Administration has already taken to save about $2 billion include:
* Restricting state general fund discretionary spending by 8 percent.
* Putting a freeze on hiring, travel and purchasing new equipment.
* Restructuring long-term debt and debt payments.
* Transferring excess balances from certain special funds into the general fund
