HILO — Some Hawaii County Council members, preparing for their last shot at the annual budget, are targeting at least $15 million from county programs to put toward advance payments on retiree health care, despite assurances from Mayor Billy Kenoi
HILO — Some Hawaii County Council members, preparing for their last shot at the annual budget, are targeting at least $15 million from county programs to put toward advance payments on retiree health care, despite assurances from Mayor Billy Kenoi that deferring the payments won’t jeopardize the county’s financial situation or bond rating.
The council plans a marathon day Thursday to go over the $365.1 million spending plan, and debate and vote on amendments from each council member. Kenoi has the option of vetoing the budget, and the council can override the veto with at least six votes. Once approved, it would go into effect July 1.
South Kona Councilwoman Brenda Ford, who chairs the Finance Committee, said she’s putting forth two amendments to take $10 million and $5 million from the fund balance, which is the $18 million the county had left over from the previous year. That’s already been plowed back into programs in the mayor’s budget, so the council will need further amendments to put the money back into the fund balance account, according to Council Chairman Dominic Yagong.
Specific amendments could not be viewed by press time, because the agenda had not been posted online. The state Sunshine Law requires the county to give six calendar days’ notice of meetings.
Ford said she broke the money into two amendments to give the council more flexibility, in case other councilors were also planning on using the fund balance. Under the Sunshine Law, no more than two council members can discuss pending business, and only then if they don’t try to agree on their votes.
Yagong was holding his proposed amendments close to the vest Friday afternoon, but he reiterated his long-held position that payments on future retiree health care, known as GASB 45, have to be paid each year. If, as requested by Kenoi, $20 million is deferred again this year, it means a total of $40 million will have been deferred over the past two years.
“We need to try to live within our means,” Yagong said. “Either pay your bills or leave it for future generations. I believe that’s cheating the future.”
Kenoi says there is already $61 million in the account from prior years, and he stresses all current retiree benefits are paid up. During discussions with the council last month, Kenoi invited the council to find the money in the budget to make the payments.
“It’s got to be taken from somewhere,” he said at the time. “If you find $20 million you would like to convert to GASB … I’d be happy to sign that budget.”
The mayor amended that comment Friday to, “We’d take a good hard look at that.”
Yagong, who plans on introducing floor amendments after he sees what other amendments fellow councilors make first, said he’s finding money in various departments that could go toward the GASB payment.
“We feel there’s money here and there that we could certainly tap into,” Yagong said. “That’s not saying there’s money that the departments would easily release.”
Kenoi pointed out that taking money from the fund balance just means the money has to come from somewhere else, or the budget has to grow. He said he’s consistently reduced the size and cost of government over his term.
“Increasing the fund balance is hocus-pocus economics,” Kenoi said. “It’s not really fiscally responsible budgeting.”
A budget in tough economic times, especially in an election year, brought out ample opportunities for cross-fire between Kenoi, who’s seeking reelection, and Yagong, who’s challenging him for the mayorship. Yagong criticised the administration for being unyielding on its budget.
“The past two years have been frustrating,” Yagong said, “because he leaves no room for compromise. His administration fights every single council amendment.”
Kenoi, in turn, blasted back at Yagong, saying his practice of holding back his amendments until the actual day of the council meeting cheats the public of the opportunity to weigh in.
“It violates the openness and transparency of government that people expect,” Kenoi said. “It doesn’t give the community notice of a budget that affects their quality of life.”
Yagong said floor amendments are “part of the process.” The mayor had his time line to get the budget and amended budget to the council, and the council now has its deadlines, he said.
