The Budget?

On KHON 2, the governor said, "To adopt a budget that doesn't realize some labor savings is really ignoring reality."

To that, HGEA Executive Director Randy Perreira said, "The governor is the very one who is out of touch with reality. The state clearly has a revenue problem, and the Lingle-Aiona administration has yet to present a sensible idea to move Hawaii forward and stimulate our economy. If the governor thinks that labor cuts alone can sustain a balanced budget through these rough years ahead, she has an unrealistic approach to manage our state finances."

I agree with Randy. The goal should be to stimulate the economy. Government’s role is to create spending. The federal government knows this and is trying to help. Okay I’m no economist but I do remember an econ prof at UH that said during a recession a theory was to input $X million into the economy and that would right it. Of course no one did that but it was a theory put forth by economists then. I think republicans agree that an input of cash into the economy is good but they want their friends (the rich) to have it.

Labor savings will decrease the tax revenues. Less pay equals less spending equals less GET income. Less pay equals less income tax.
Now the governor wants public unions employees to take a pay cut. What has she done during her term about the payroll? Gave principals a @21% raise. (Okay they did move to 12 month but there sure was no criticism about that) Gave UHPA a large long-term raise. (Okay they probably deserved it) Complained that her cabinet members needed a raise. Got a pay raise for her and her cabinet. The legislators got a 36% raise. Now she wants appointed officials to take a 5% pay cut. That would cut her pay to @$117,000. I’m not a math teacher (though I have played one in school) I would take a 5% pay cut after I got a 9% raise.

It really amazes me that when the governor ran for office she talked about the economy. How she would downsize government. Improve education. She has done none of the above. Create a business friendly environment? Ask the super ferry. NFL teams have a quality control coach. The governor needs one now to keep her various statements in sync.