Mike from Hawaii Kai: Why not raise taxes for three years and conduct an orderly unwinding of targeted state agencies and services through the budget (prioritizing) process?

Can we have a logical discussion of how tax increases may be beneficial from an economic perspective?

Linda Smith: We agree that the furlough of teachers on instructional days was not a good idea. That is why the governor decided to use money in the rainy day fund to return children to the classroom.

Increasing taxes is something the governor wants to avoid since it will hurt the ability of the state to recover from the recession. (General excise) taxes particularly hurt low-income families. There were funds in the rainy day account and thus we did not need to increase taxes to restore teaching time.

Kailuaresident: The failure of the state to come to an early agreement with HGEA and other public unions will have cost the state millions of dollars in the long run. She (Gov. Lingle) managed to antagonize the unions from the get-go by trying to unilaterally impose first furloughs, then layoffs. In both cases, the courts ... ruled that she couldn't do so (and) she had to consult with the unions. To many of us, this seems like a replay of the Superferry, where the law was ignored and eventually the courts stepped in. Can you explain to us why Lingle didn't consult with the unions from the very start?

Linda Smith: Gov. Lingle started consultations with the unions (beginning in) the summer of 2008. The governor had private meetings with each of the union leaders to explain to them the state's fiscal situation and why we needed their kokua. When it appeared that we were not going to be able to sign a collective bargaining agreement by July 1, 2009, the governor took steps to institute furloughs as a way to stay within the constitutional requirement for a balanced budget. Fortunately, after a few months we have been able to sign an agreement with HGEA.

Michael Woodward: If you'll pardon the metaphor, what does the governor have on her "bucket list" for the remainder of her term?

Linda Smith: She has and will remain focused on three key areas: moving Hawai'i toward the use of renewable, locally available energy to remove our dependence on foreign oil; transforming our economy to one based on innovation; and ensuring our children are equipped with the skills necessary to compete globally, especially science, technology, engineering and math (STEM) skills.

Don: Did the national reaction to the poor decision to reduce instruction days prompt the governor to finally agree to reduce the blow on schools and tap other funding sources?

Linda Smith: While the governor was in China she was closely monitoring events here and nationally, and thus was aware of the concerns being raised. Even before her trip, she had indicated her preference to use non-instructional days for furloughs.

The national comments were politically motivated in our judgment. The governor has been focused on what is best for the kids — and took the necessary steps to propose a solution to return kids to the classroom.

Neighbor: What in particular about charter schools does the governor believe is deserving of about $24 million out of the $35 million that I read about in the news lately? As a parent of a student with a disability who is now finally in a successful charter school, I applaud this announcement.

Linda Smith: Thanks for letting us know that your child is doing well in a public charter school. That is one of the reasons why the governor supports equitable funding for charter schools. They have a demonstrated track record of helping children who do not do well in traditional public schools. The amount of additional funding for public charter schools is still being determined. However, we know that the traditional schools spend about $11,200 per pupil while the charter schools receive about $6,200 per pupil. The governor wants to make sure the charters receive their fair share of funds and can help do this through the federal economic stimulus money targeted for education.

Jeff: What do you see as potential revenue sources for the state? You can only cut programs and labor so much. Should you not be looking at increasing revenue somehow?

Linda Smith: You are correct that it is important to look at increasing revenues as part of the tools to balance our state budget. The state Tax Department has several programs including identifying firms that deal mostly in cash transactions and ensuring they pay their fair amount of taxes. We have also had an amnesty program that allows those who didn't pay to come forward voluntarily and pay up. Third, we have a program that compares federal and state tax information and when individuals or companies are paying the federal government, but not us, we can identify them and follow up to make sure they pay state taxes as well.

In addition to these efforts, the governor is focused on increasing tourism to Hawai'i, since this is a large part of our tax base.

Doug: Considering the economic indicators for Hawai'i, what will 2010 hold and when can Hawai'i expect to come out of this recession?

Linda Smith: I wish we all had a good crystal ball, but based on the data we have seen from the state's economists and other experts, it does not appear that Hawai'i will return to pre-recession levels until 2012.

That is why it is important that we take steps to mitigate the impacts of the global recession on Hawai'i by accelerating state public works projects, bringing in additional federal dollars, encouraging additional tourism from abroad, and reaching out to private firms that want to invest in Hawai'i, especially in renewable energy. Finally, we need to be sensitive to our own businesses and companies by making sure we minimize adverse impacts on them. That is why the governor is working with the business community to develop alternatives to funding our unemployment insurance account during this period of higher unemployment in the state.

Junior from Kaimuki: Most teachers already arrive at work well over an hour before school starts and work with students before the school bell rings. Then they stay after school and help tutor kids for free. Many teachers also go in on weekends. They work at home making lesson plans and grading papers.

Non-instructional days are used to complete the reams of paperwork DOE assigns and to collaborate on curriculum development and all of the other things school administrators require. ... How are teachers supposed to do all of the tasks that consume their non-instructional days when much of their personal time is already taken up with teaching-related work?

Linda Smith: Thanks for pointing out that non-instructional days are time for teachers to prepare lesson plans, work collaboratively with other teachers and also attend faculty meetings. We spoke with teachers on several islands as well as teachers in elementary, secondary and high schools about these days and how they use them.

In normal times we would want teachers to have the ability to get paid for non-instructional days, but these are not normal times. Teachers will be given the option to go home on these non-instructional days and use them as a furlough day. Or they could decide to stay at school and continue with the professional development and collaborating they do on these days when kids are not in class. This will be discussed and decided during the negotiations with the teachers' union.

Nahoaloha: I'm particularly struck by the UH faculty union's ability to keep on with the "evergreen clause" maintaining their current contract, seemingly forever. Wouldn't a fiscal crisis force an end to that?

Linda Smith: I am impressed that you know a lot about the contracts the state has with its employees. The university is handling the negotiations with UPHA. The "evergreen clause" may have made sense when unions were bargaining for increases in their salaries, but no longer makes sense now that we are in a fiscal recession. The ability to eliminate the clause is a legal matter.