The Lingle administration and the Hawaii Government Employees Association yesterday submitted their final written proposals to an arbitration panel as the state continues to seek new contracts with its public-worker unions.

Binding arbitration proceedings are scheduled to begin Sept. 4. A decision by the panel is expected by Dec. 21.

State and union officials declined to offer details of their plans, which were submitted to a three-member arbitration panel headed by Philip Tamoush, a Torrance, Calif.-based dispute resolution arbitrator and mediator with more than 30 years of experience. He will be the panel's neutral member.

The union representative will be Larry Ishimi, who previously was a budget chief for Democratic governors. The administration's representative is Stan Shiraki, a longtime civil servant in the state Department of Budget and Fiscal Services.

The HGEA's 29,000 members will be given a summary of the union's position sometime today, HGEA spokeswoman Jodi Chai said.

Chai reiterated that the union continues to prefer a negotiated settlement and stressed that such a settlement could still occur outside the binding arbitration process.

"While the arbitration hearing is taking place, and up until the arbitrator renders a decision, the parties can continue to negotiate a settlement," Chai said. "HGEA remains open to continuing negotiations with the employers, as our preference remains to be a voluntary settlement that is reasonable for both parties.

Any settlement probably won't happen this week. Gov. Linda Lingle is on the Mainland for the Republican Governors Association meeting and personal time.

The state is facing an estimated $786 million budget deficit through June 2011. Lingle has sought to save $688 million through labor cuts.

The administration originally proposed to furlough workers in an effort to help cut the deficit, but a Circuit Court ruling last month ruled furloughs for union workers should be subject to collective bargaining.

The administration last week delivered written layoff notices to about 1,100 state workers who were told they will lose their jobs in November.

The governor also ordered 900 nonunion workers to take three furlough days a month starting in September. The mix of management and rank-and-file workers are in exempt positions and are not covered by the Circuit Court ruling.

The state is scheduled to begin binding arbitration proceedings with the United Public Workers on Sept. 11.

The HGEA has proposed 5 percent pay cuts, a plan Lingle said won't be nearly enough to cover the deficit.