Caldwell to let city budget take effect without his signature

SA: By neither signing nor vetoing Bill 11 (2013) or Bill 12 (2013), the $2.16 billion operating budget and $635 million capital improvements package become law and will take effect when the 2014 fiscal year begins on July 1.

Key among Caldwell’s concerns is a proviso restricting how the administration can use about $65 million in a so-called vacant and funded positions account. Caldwell said the administration needs to have the ability to maneuver money quickly in order to hire temporary workers through what are known as personal services contracts.

Clauses in the budget bar the administration from using the vacant-funded position account for that purpose, administration officials noted.

read ... Caldwell

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2012: Cayetano: Hannemann was Doling out Personal Services Contracts Like Hot Cakes

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Mayor Caldwell returns budget bills without signature, expressing concerns; signs three other bills

Mayor attaches letter outlining adverse impact on core city services, budget will become law without his signature

News Release from Office of the Mayor June 21, 2013

Honolulu Hale - Today, Mayor Kirk Caldwell returned to the city clerk, unsigned, three bills related to the city budget for Fiscal Year 2014.  The mayor attached letters expressing concerns about how the City Council’s final budget amendment, introduced just hours before the vote, will affect core city services.

The mayor’s letter on Bills 11 and 12 highlights concerns “about the restrictions placed upon the Provision for Vacant Positions and Salary Increases in Section 12(k) and the foreseeable adverse impact it will have on the delivery of core City services.”  He notes that the Council rejected a proposed revenue increase of $15 million while adding $10 million to $11 million in grants-in-aid and other expenditures to the operating budget, creating a budget imbalance of about $26 million.  The Council dealt with the imbalance by “cutting approximately one-half of the funding that is required to fill vacant positions” which the mayor warns could result “in cuts in core services in all areas of the City’s operations, including Police recruitment, parks maintenance and activities, and sewer and refuse operations.”

The mayor’s letter also expresses concerns about a restrictive proviso related to the city’s recycling contracts and the removal of funding for the Hau‘ula Fire Station Relocation project.

Also today, the mayor signed three other bills and returned unsigned three bills related to the HART budget.

LIST OF BILLS

The city budget bills returned unsigned with letters expressing concern are:

• Bill 10 (CD1) relating to the Legislative Budget for the Fiscal Year July 1, 2013 to June 30, 2014

• Bill 11 (CD2, FD1) relating to the Executive Operating Budget and Program for the Fiscal Year July 1, 2013 to June 30, 2014
• Bill 12 (CD2, FD1) relating to the Executive Capital Budget and Program for the Fiscal Year July 1, 2013 to June 30, 2014

The letters expressing concerns about these bills are attached to this release.

Also today, Mayor Caldwell signed into law the following three bills:

• Bill 13 authorizing the issuance of bonds for the Capital Budget
• Bill 26 related to real property taxation
• Bill 69 (2012) relating to rental assistance

Mayor Caldwell also returned unsigned three bills relating to the Honolulu Authority for Rapid Transit (HART) budget:

• Bill 19 (CD1) relating to the HART Operating Budget for Fiscal Year July 1, 2013 to June 30, 2014
• Bill 20, (CD1) relating to the HART Capital Budget and Program for Fiscal Year July 1, 2013 to June 30, 2014
• Bill 21 authorizing the issuance of bonds for HART

The mayor signed Bill 15 last week.

Bills 11 and 12 letter

Bill 10 letter

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