The Lingle administration and the Hawai'i Government Employees Association have exchanged new contract offers that bring the two sides closer together on furloughs and would stop many of the 1,100 layoffs of state workers ordered by Gov. Linda Lingle.

The Lingle administration has offered the union 24 furlough days this fiscal year starting in October and 24 days next fiscal year, along with a halt to layoffs except for staff at Kulani Correctional Facility on the Big Island, which is being closed.

Furlough days would be more frequent this year, since the fiscal year has already started, in July, but would fall to two days a month next fiscal year, down from the three days a month the administration has previously proposed.

The administration is also willing to reopen negotiations in March to review state tax collections, and possibly reduce furlough days and increase the state's contribution to worker health care premiums if revenues improve. In return, the administration wants the union to drop its legal challenge to furloughs and a prohibited practices complaint against layoff procedures that was filed with the Hawai'i Labor Relations Board.

Union negotiators told the rank-and-file yesterday afternoon that they seriously considered the state's offer. "The teams seriously considered the proposal because it is the first from the state that reflects a willingness to move off the governor's previous offer of a 14 percent pay cut or three furlough days per month," according to a post on the HGEA Web site. "It is also the first offer to address putting a stop to layoffs, at least for now."

The union's counter-offer is for 18 furlough days this fiscal year, starting in October, and 12 days next fiscal year. The union also wants the state to continue covering 60 percent of worker health care premiums as health care costs rise. The administration has said it does not want to pay any additional costs for health care.

On furloughs, the Lingle administration is offering a total of 48 days over two fiscal years, while the union is offering 30 days. Layoffs would be limited to staff at Kulani and other unidentified program changes that would be subject to consultation with the union.

"We're not in a position to comment on the proposals themselves, other than to say that ongoing negotiations are continuing in hopes of reaching a settlement," said Jodi Chai, the HGEA's communications officer.

A Lingle spokesman did not return telephone calls seeking comment last night.

BREAK IN STALEMATE

The exchange of offers is a sign of progress after months of stalemate. The Lingle administration had previously stuck to its position of three furlough days a month — making for a 14 percent pay cut — while the HGEA has suggested one furlough day a month, adding up to a 5 percent pay cut.

The HGEA, the state's largest public-worker union, and the state are scheduled for a binding arbitration hearing next Friday. The state is also in talks with the United Public Workers, the Hawai'i State Teachers Association, and the University of Hawai'i Professional Assembly.

Lingle said yesterday that reducing labor costs is necessary to close the state's budget deficit, which has swelled to at least $878 million through June 2011 after the state Council on Revenues lowered its revenue forecast for the fiscal year.

The governor has ordered layoffs of more than 1,100 state workers starting in November and has asked state departments to prepare for another round of cutbacks.

The union told members that it recognizes that the state's offer would create serious hardship and provides no assurances against future layoffs. The union also cited the council's lower revenue projections and said "it seems likely that the state will be considering additional layoffs."