HILO — While a majority of county departments are seeing their budgets shrink for the coming fiscal year, some will have moderate increases. HILO — While a majority of county departments are seeing their budgets shrink for the coming fiscal
HILO — While a majority of county departments are seeing their budgets shrink for the coming fiscal year, some will have moderate increases.
The Kenoi administration submitted its $365.3 million budget for the 2012-2013 fiscal year to the County Council last Thursday. The proposed operating budget, which does not contain any changes in the property tax rate, is half a percent smaller than the current fiscal year.
In his message to the County Council, Mayor Billy Kenoi touted the achievement of general savings in the proposed budget “through many sacrifices across all administrative departments, from further reduction of travel, training and contracted services to reductions in supplies and continued postponement of equipment purchases.”
A closer look at some of the operating budgets shows that those savings hit some departments harder than others.
By percentage, the county Civil Defense Agency is getting its budget slashed from $1.7 million to $1.2 million, a difference of 26.4 percent. The Mass Transit Agency’s budget is shrinking 15.5 percent, from $4.0 million to $3.3 million. And the Office of Aging’s budget is falling from $2.9 million to $2.3 million, a difference of $550,073, or 19.1 percent.
Other departments are seeing a rise. In an election year, the Office of Elections would receive a 11.6 percent increase in its budget to $888,674.
The county’s legislative branch, which includes the County Council, clerk and staff, would see its budget increase by 5.1 percent to $3.3 million.
During his tenure Kenoi has emphasized the importance of protecting Hawaii County’s core public services, and the proposed budget reflects that. The Police Department’s budget rises from $53.8 million to $54 million. And the Fire Department gets a $672,727 boost, or 1.8 percent, to $37.3 million.
The biggest change, albeit a temporary savings, comes from the final payment on bonds issued in 1993, which would result in a reduction in the required transfer to the debt service fund for the budgeted fiscal year, Kenoi’s office said.
As a result of this and other factors, Hawaii County is reducing its transfers from the General Fund to other departments by $11.8 million — a reduction from $68.7 million in the current fiscal year to $56.8 million in the next. But that figure is expected to jump back up to $69.6 million in the 2013-2014 fiscal year as the county begins principal payments on bonds issued in 2010.
All these numbers are contingent on the Legislature preserving Hawaii County’s share of the Transient Accommodations Tax, which is accounting for an estimated $17.3 million during the current fiscal year.
The Kenoi administration has until May 5 to amend the budget. From there members of the County Council will have the chance to pass amendments to it before the fiscal year starts July 1. Last year council members made amendments but were unable to override Kenoi’s veto, so his proposed budget became law.
Several council members who were contacted Monday said they had not studied it in depth enough to render a comment. Others, like Council Chairman Dominic Yagong, came out swinging against Kenoi’s deferral for the second consecutive year of about $20 million in GASB, or future health costs for retirees that have to be made up in future budget years when, officials hope, the economy will be better and it will easier to make it up.
Kenoi last Thursday vigorously defended the deferral.
“The GASB payments, we made our last payment in June of 2011,” he said. “We have over $61 million in our GASB account. We did an analysis of where we were, and currently today we actually have a surplus of about $120,000. … So currently, we’ve met all of our GASB requirements and obligations. “I want to make clear that we’ve made all of our payments. We’re current. There is no GASB bill that we’re not paying. Our credit rating remains firm and strong. The county remains on sound financial footing.”
Yagong, who is a candidate for mayor, disagreed.
“We do not have a balanced budget. It is a budget that is shackling for future generations,” he said. “It insults the intelligence of the people, when (Kenoi) gives the excuse that the actuaries said it’s OK not to pay. I mean, the actuary isn’t on the hook to make up for the $40 million nonpayment. The people of this county will be handcuffed in future budgets because Billy doesn’t want to make the tough decisions.”
“It’s 40 million plus, and I just cannot believe that he would do this without making anything whatsoever to make some payments on this GASB,” he said.
The chairman promised in the coming days making some “very specific recommendations” to cut Kenoi’s budget.
The amendments he will propose will be “difficult to make, but at the same time, considering the economic times that we’re in, we need to do it.”
Councilwoman Brenda Ford, chairwoman of the Finance Committee, noted that the administration proposes ending its West Hawaii golf subsidies for savings of $500,000, but she is wondering why similar cuts aren’t being done for East Hawaii golf.
Council member Angel Pilago found a few things he liked, among them a freeze in the property tax rates, and funding for roads and other projects in his district. At the same time, Pilago said there is room for savings and opportunities for the council to do its job more effectively.
He expects in the coming months that council members will have “a lively and animated discussion, and I look forward to that.”
