There are only so many ways to do a state government budget. If revenues are not meeting expenses, you have three choices: cut expenses, raise taxes, or a combination of both. It is an illusion to think otherwise. But some want to believe in illusions because the alternative would lead to hard decisions.
The University of Hawai'i (UH) faculty union supported the Republican candidate for governor in the last two elections because they felt they were getting a raw deal under the Democratic administration (who had the unenviable task of cutting spending due to lack of revenues). The union said higher education was not getting the emphasis it deserved and was "dying a death of a thousand cuts."
So they supported now Governor Lingle because they wanted to believe what has been described as voodoo economics. Specifically, the governor could cut revenues, by cutting taxes, while at the same time increasing spending on everything, including higher education. This, even as spending was already far out pacing revenues.
Comes the dawn and the Lingle administration is proposing cuts to the University. Shocking. UH officials are now complaining that any more cuts would "be destroying the future of this institution."
Unfortunately, the UH is not helping their case by refusing to indicate where those cuts would have to come from. Hence, they can not point to the concrete effects that a budget cut would have that would "destroy the future of this institution."
On the other hand, the Lingle administration, including her Budget Director, is shooting themselves in the foot by telling the UH, and other departments, that even though they were told to make cuts, without chance for appeal, the administration didn't really mean that. That if the cuts were in fact too much, then of course you would tell the administration and they would look at making some changes.
The lessons the departments will learn from this is the administration can not be trusted. That what they say and what they mean are two different things. That nothing is final and that you can continue to appeal and tie up the movement of government until the cows come home at night.
Before the election, I said that Governor Lingle did not have the experience to be an effective leader. Not only has this been confirmed, but it is now clear that neither do at least one of her appointed administrators. The fall out from this will be an administration constantly falling behind and unable to make quick, decisive decisions.
Have a great weekend everyone -Aloha!
