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The Honolulu Advertiser
Posted on: Monday, December 7, 2009

Big Isle mayor seeks freeze on executive raises


By Jason Armstrong
Hawaii Tribune Herald

Hawaii news photo - The Honolulu Advertiser

Mayor Billy Kenoi

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Suspending executives' raises, imposing a hiring freeze and furloughing workers are among the measures being considered by Hawai'i County leaders facing a possible $45 million budget deficit.

Big Island Mayor Billy Kenoi has warned that revenues are predicted to drop by $33.8 million and county expenses should be $11 million higher during the coming budget year that starts next July 1.

To help offset those trends, Kenoi is asking the Salary Commission to withhold the 3 percent pay raises the county's top managers receive on their second anniversary and every year thereafter.

Voters empowered the nine-member commission to set the pay for executives and the county's 11 elected officials.

"Given the current state of our economy, our projected budget shortfall for FY 2010-11, and the wage reductions being negotiated for our civil service employees, I believe it prudent that county executives not receive pay increases at this time," Kenoi wrote in a Nov. 6 letter to the commission. "I ask that all pay increases under your control be frozen until further notice, or at least until June 2011."

The Salary Commission is scheduled to consider Kenoi's request during its 10 a.m. meeting Thursday in Hilo at the county's 101 Aupuni St. office building.

It would affect 31 positions, including the County Council's clerk, deputy clerk and legislative auditor, all of whom are legislative appointees, Managing Director William Takaba said.

"It's just going to freeze what everyone's getting now," Takaba said, noting he and Kenoi also would be affected.

Those annual salaries range from $89,796 for certain deputy directors to the $114,768 paid to Police Chief Harry Kubojiri. Kenoi currently receives $109,152 annually.

Kenoi did not know how much money would be saved by suspending the raises called "step movements."

He's requested that information from Takaba, who said he will have a figure in a few days.

Already having his office appointees work for free one day a month, Kenoi said Hawai'i Government Employee Association members have accepted two furlough days a month starting July 1, and he's in talks with the United Public Workers union to achieve the same savings. Those contracts are negotiated statewide with the state and Hawai'i's three other counties.

"We are looking at furloughs for all other county employees," Kenoi said.

Those labor savings will go a long way toward balancing the operating budget for the coming fiscal year, he said.

"We're confident with the sacrifices made across the board that we'll be able to balance our budget next year," Kenoi said.

He acknowledged that county law requires a balanced budget to be adopted by June 30 of each year.

Council members also are looking to reduce labor costs that account for roughly 70 percent of the county's $386.7 million operating budget.

Last week, lawmakers formed a four-member committee tasked with examining county vacancies to determine if money earmarked for those positions can be better spent elsewhere.