GOVERNOR LINGLE URGES PROMPT LEGISLATIVE ACTION ON PROPOSALS TO SAVE MONEY

HONOLULU – Proposals that would save the State up to $21 million each year and correct flaws in the collective bargaining system are pending legislative action.  Governor Linda Lingle is urging the Legislature to promptly schedule hearings on these measures before the upcoming internal legislative deadline of February 12.

“The State is still spending hundreds of millions of dollars a year more than it is receiving in revenues,” Governor Lingle stated. “It is important that the Legislature join with me in changing laws that will lower the costs of government and improve its operations.  I encourage the Legislature to schedule hearings on these bills that will enable the State to save and use taxpayer dollars more efficiently and improve the collective bargaining process.”

The Administration has proposed four bills that would reduce the costs of the Employer-Union Trust fund that pays health insurance costs for state employees and their dependents.  The bills are:

• HB 2534 / SB2687 would save $4.1 million annually by suspending the payment of life insurance premiums for State and county personnel.

• HB2535 / SB2688 would save $8.4 million per year by discontinuing State reimbursements for Medicare costs for spouses of retirees.

• HB 2536 / SB2689 would save at least $200,000 per year by linking the State’s contributions for retirees to the appropriate cost index, such as the actual premium paid.

• HB 2537 / SB 2690 would save between $2.5 million and $8 million annually by paying health care costs for retirees not covered by Medicare in the same manner as those covered by Medicare.

The Administration has also proposed three bills that would correct flaws in the current system for negotiating labor contracts with government employees. 

“We should learn from the lessons of this past year that the State and counties need greater latitude to complete labor negotiations and resolve labor disputes,” Governor Lingle said.

The three measures include:

• HB 2569 / SB2722 allows the State and counties to separately negotiate and execute collective bargaining agreements with the unions that represent their respective employees.

• HB2570 / SB2723 ensures that the State’s fiscal condition, such as its solvency and the impact of  wage settlements on other bargaining units are considered when binding arbitration is used to settle a labor contract.

• HB2571 / SB2724 returns the right to strike to all public employee collective bargaining units except those involved in health and safety professions.  This would eliminate binding arbitration for these same employees.

The 2010 Legislature has set an internal deadline of February 12 for bills to reach the final committee in each house to remain alive this session.  While a measure can be revived after that deadline, it is procedurally more difficult.  In keeping with the shorter legislative calendar, the Governor is asking that these seven measures be scheduled for hearings early next week.

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