The State of Hawaii faces a $162.3 million budget shortfall this fiscal year and could have to deal with a $903 million shortfall by 2011 if spending is not cut. Governor Linda Lingle has imposed a 4% across the board spending cut across all state departments. In addition the Governor notified Hawaii's public worker unions that there is no money for pay raises. The State has also set a hiring freeze on most if not all departments.

The State Department of Education unveiled its plan to cut more than $31.5 million from its budget during a televised announcement made last week on Olelo TV. Their plan calls for eliminating vacant positions and scaling back dozens of programs. The DOE is also considering raising the price of school lunches and school bus transportation.

Other State agencies are dealing with similar measures to curb spending.

Tax revenues have also slowed down because of the weakening economy. Visitor arrivals are down, real estate and construction sectors are slumping . People and businesses are spending less which is a contributing factor to the decline in state tax revenue.

This coming session the state budget will emerge as one of the top issues in the Legislature as both houses will have to find ways to deal with the projected shortfall. The majority party may use the shortfall to increase taxes, which will come at the worst time. I will continue to support legislation that will reduce our tax burden and curb spending.