Gov. Linda Lingle said today that she will pursue further budget cuts and layoffs of state workers after determining that public-sector labor unions' response to the state's latest offers was "unacceptable."

Lingle said the Hawaii Government Employees Association response to the state's recent contract offer was unrealistic. She said the United Public Workers did not respond to the state's offer.
Lingle said she believes the unions prefer layoffs to furloughs.
The governor said the state is now preparing for binding arbitration with the HGEA and the UPW in September.
Lingle said the state made the offers in advance of the state Council on Revenues meeting yesterday to update the state's revenue forecast.
The new forecast expands the state's budget deficit by between $92 million and $98 million, to at least $878 million.
The governor said she "truly believed" the state and the HGEA were close to reaching an agreement that would have avoided layoffs before receiving the HGEA's response.
Randy Perreira, the HGEA's executive director, said it is Lingle who has
shown she is unwilling to negotiate. “The HGEA negotiating teams put forth a
counteroffer with a substantial concession that they felt their fellow
members could afford to live on. Contrary to the public statements the
governor made today, claiming that HGEA prefers layoffs to furloughs, our
negotiators proposed two furlough days per month effective Oct. 1.
“By rejecting it outright, the governor has clearly shown she is not willing
to negotiate, and intended to implement layoffs all along. The governor
wants a Œblank check,’ and as the economy worsens, she’ll continue to demand
more cuts from her own employees. She is choosing to ignore other options to
address the budget shortfall, including a proven private-sector
cost-reduction method of offering employees an early retirement option.”