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Old 04-15-2020, 02:07 PM
 
Location: Kahala
12,120 posts, read 17,951,354 times
Reputation: 6176

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As predicted - State is proposing 20% pay cut for most State employees. (What the article doesn't say - but what I do know, is they are looking at May 1 for the pay cuts)

https://www.hawaiinewsnow.com/2020/0...ate-employees/

In a letter to members Tuesday, Hawaii State Teachers Association President Corey Rosenlee said it’s not clear if the salary cuts would be implemented as furloughs or across-the-board salary decreases.

“According to the governor’s human resources and budget directors, the cuts are meant to prevent an economic collapse as the coronavirus pandemic cuts off a major sources of state revenues,” Rosenlee said.

A spokeswoman said in addition to the 20% pay cut, the governor has proposed a 10% pay cut for first responders in several bargaining units — including nurses, correctional workers and others.

And while the article says the Union will reject them - which they will - the Governor has unilateral rights to impose them -

There are three legal authorities under which a furlough can be taken.
Furloughs of 30 calendar days or less are covered under adverse action procedures found in
Subpart D of 5 CFR 752.

Furloughs of more than 30 calendar days are covered under reduction in force procedures found in
Subpart B of 5 CFR 351.

Furloughs for Senior Executive Service (SES) members are covered Subpart H of 5 CFR Part 359.
Furloughs may also be taken because of a sudden emergency requiring curtailment of the agency’s
activities; therefore, no advance notification is possible.

The customary 30day advance notice period and opportunity to answer are suspended under the
provisions of 5 CFR 752.404 (d) (2) and in accordance with 5 CFR 359.806 (a) for SES Career appointees.

Last edited by whtviper1; 04-15-2020 at 02:21 PM..
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Old 04-15-2020, 03:02 PM
 
Location: On the water.
21,771 posts, read 16,420,821 times
Reputation: 19898
Ouch
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Old 04-15-2020, 03:33 PM
 
Location: Honolulu/DMV Area/NYC
30,679 posts, read 18,313,977 times
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And so it starts. Painful, but necessary. While this pandemic is nobody's fault, Hawaii can't tax its way out of this one. Not when its main industry has been decimated.

Hopefully, any pain will only be temporary.
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Old 04-15-2020, 03:36 PM
 
Location: Lahaina, Hi.
6,386 posts, read 4,848,794 times
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This state has an ongoing shortage of more than 1,000 teachers, mostly due to low pay. Now they are going to cut pay 20%?

Good plan! That will fill all those empty teacher positions and keep the current ones from leaving!
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Old 04-15-2020, 03:36 PM
 
Location: Southernmost tip of the southernmost island in the southernmost state
982 posts, read 1,169,465 times
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You could have also posted this in the thread "The continuing shocking state of Hawaii Public Schools" since these cuts will perpetuate that Continuing and Shocking state.
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Old 04-15-2020, 03:59 PM
 
Location: Kahala
12,120 posts, read 17,951,354 times
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Quote:
Originally Posted by Grassyknoll View Post
You could have also posted this in the thread "The continuing shocking state of Hawaii Public Schools" since these cuts will perpetuate that Continuing and Shocking state.
Agreed - but since it impacts all State workers - warranted its own thread.

I don't think many people still realize how bad this is yet to get in terms of employment - we are only scratching the surface right now

Specific to teachers - they last did a furlough 2009-2011

Furlough Timeline | The Honolulu Advertiser | Hawaii's Newspaper
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Old 04-15-2020, 04:57 PM
 
2,378 posts, read 1,321,669 times
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Quote:
Originally Posted by Futuremauian View Post
This state has an ongoing shortage of more than 1,000 teachers, mostly due to low pay. Now they are going to cut pay 20%?

Good plan! That will fill all those empty teacher positions and keep the current ones from leaving!
The state may prefer teachers to leave and also implement a hiring freeze to save money.
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Old 04-15-2020, 09:02 PM
 
Location: Kahala
12,120 posts, read 17,951,354 times
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Hawaii News Now on 5pm news confirmed May 1 target to last 2 years

I think this moves also telegraphs tourism definitely won't be returning this summer.

I've had some ask me why can't Hawaii just run a deficit -

Well - the Hawaii constitution requires a balanced budget - deficits are not allowed.

Last edited by whtviper1; 04-15-2020 at 09:40 PM..
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Old 04-15-2020, 10:42 PM
 
Location: Kahala
12,120 posts, read 17,951,354 times
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Thought I would offer a primer on just how bad the budget has turned on a dime in Hawaii. And how it is much worse than portrayed so far in the media.

The General fund budget is roughly $8 Billion per year (will leave the Special Fund budget out, taxes like gas tax goes into the Special Fund - hence, raising gas taxes won't help the general fund).

Of the $8 Billion - roughly half is fixed - towards Medicaid, retiree payments, debt service, etc.

$1.7 goes towards Education - $500 million to University of Hawaii. I'm now at $6.2 Billion, the other $1.8 Billion pays for everything else in the State that isn't part of the Special Fund. There is no point in talking about taking away things from the Special Fund, as it is mandated by the Constitution - it can't be touched.

Publicly, the Governor has said we are going to run $1.5 Billion short. Internally, the State thinks it will be $2 Billion. Either way, it is a staggering number - remember, after the fixed budget and education, all you had left was $1.8 Billion. The shortfall wipes everything out.

One other tidbit, the Teachers Union President thinks Hawaii has $1 Billion in its rainy day fund - the actual number is roughly $370 Million
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Old 04-16-2020, 12:42 AM
 
Location: Honolulu
1,894 posts, read 2,540,148 times
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Wow, crazy numbers. I'm assuming Hawaii will get hit harder than other states due to our dependence on tourism. I've been a proponent of shrinking state government payroll here for a long time but I know the unions are powerful. On the news today the union boss was talking about finding alternatives. However, with pretty much zero income from tourism, it's going to be hard to find anything else to make up this shortfall. I'm sure some state workers are upset and scared to say the least. This is going to be a time when all that security of a state job comes at a steep price. I'm also concerned about quality of workers being compromised, especially positions like teachers. 20% for 2 years is a huge pay cut.
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