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The Honolulu Advertiser
Posted on: Tuesday, November 18, 2008

Maui struggling over 16% budget cuts

Associated Press

WAILUKU, Maui — Maui Mayor Charmaine Tavares said some county departments are agonizing over where to make 16 percent cuts in their current budgets.

But Tavares says everyone acknowledges the need to make the cuts she ordered to save $55 million without raising taxes or making deeper cuts next year.

Tavares has also restricted major equipment purchases and out-of-state travel in the face of higher costs and lower revenues.

Employees won't be laid off, capital improvement projects won't be canceled and line-item grants to nonprofit groups won't be reduced, she said.

The restrictions affect those departments budgeted under the county's general fund, which receives money from property taxes, state hotel room taxes and other sources of revenue. Departments using special funds, such as water rates or golf course fees, will work out spending restrictions separately, Tavares said.

Although the revenue from property taxes is projected to remain flat, revenue from other sources is forecast to drop.