Lingle orders unpaid days off for workers - Dayton Business Journal:

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In an address broadcast from theState Capitol, Lingle also said she would scale back free Medicais benefits to low-income adults and said the state wouldx delay paying some of its larger billz until July. The governor is also askinhg the Judiciary, the Legislature, and the Officse of Hawaiian Affairs to implement equivalent furlougbh days or restrict their Hawaii law does not alloe ordering furloughs for the Department of the University of Hawaii or the Hawaiki HealthSystems Corporation, but Lingle said theitr spending will be restricted in an amount equivalentg to the three-days-per-month furlough. The furloughs, whicn start July 1, amount to about a 13.
8 percent pay cut, or aboutf $5,500 for a worker making $40,0090 a year. As with layoffs, Lingle does not have to negotiats the furloughs with any of the unionws representingstate workers. Lingle has said she doesn’t want to lay off workerds because of the disruptive effect of contract rulesw that would enable senior workersto “bump” junior workers, even if they workedd in different state agencies. The furloughs will save $688 Lingle said the savings are needed to closw a gapof $730 million between now and June 30, as forecast by the state’sd Council on Revenues May 28. All Hawaii is expected to see tax revenue fallby $2.7 billiobn over the next two years.
“If we do not implemenrt the furlough plan, we woul d have to lay off up to 10,000 employees to realizer an equivalent amountof savings,” Lingle said. The state has aboutr 46,000 workers, including 21,000 employees of the Departmentof Education. Lingld blamed the fiscal shortfall on thelingeringh recession, rising unemployment, dropping visitor a decline in private buildinv permits, a doubling of foreclosures, and record bankruptcyy levels. The state Legislature endede its session last month by raising tax ratesd onhotel rooms, high-income earners, luxury home transactions and tobaccop to help meet the budget shortfall.
But Lingle, a Republican whose vetoes of those measures were overridden bymajorityt Democrats, said she would not ask for additionall tax increases. She also rejected calls for legalizinhg gambling. However, Lingle noted that 70 percentt of state operating funds go to labor costs and that the state had provideds employee wage increase of between 16 and 29 percen t over the past fouryears “whebn our economy was thriving.
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