Kaua’i is okay, at least for now. Despite Governor Ben Cayetano’s pronouncement late last week that the state budget is in trouble – Cayetano has projected a possible $150 million revenue shortfall for next year – Kaua’i is okay, at
Kaua’i is okay, at least for now.
Despite Governor Ben Cayetano’s pronouncement late last week that the state budget is in trouble – Cayetano has projected a possible $150 million revenue shortfall for next year – Kaua’i is okay, at least for now.
Wally Rezentes Jr., the county’s finance director, said that despite a hit from the state, Kaua’i shouldn’t be in trouble during the coming fiscal year.
“The County anticipated an approximate $900,000 to $1 million reduction in the Transient Accommodation Tax (TAT),” Rezentes Jr., said.
The county was warned of the expected shortfall by the Council of Revenues soon after the September 11 tragedy.
But that’s changed for the worse.
“Based on the most recent numbers, provided this past week by the Council of Revenues, the County’s share of TAT revenues is estimated to decrease by $2.4, down to $10.1 million,” Rezentes Jr. said.
That decrease is a 19 percent reduction from the county’s original TAT revenues project of $12.5 million for the coming fiscal year.
But Rezentes Jr. said the problem was handled internally.
“The County’s general fund unreserved-undesignated fund balance, for Fiscal Year 2001, was approximately $11 million. Of this amount, $6.2 million was budgeted in the Fiscal Year 2002 budget. That leaves the county with $4.8 million, which will allow us to absorb the estimated $2.4 million TAT reduction,” Rezentes Jr. stated.
The Finance Director said his Department will be reviewing its $81.5 million operating budget in the next week, to determine what other budgetary steps, if any, might be necessary.
“The (budget) surplus was higher than we had expected, so we can get along for right now. The real concern is the budget for the Fiscal Year that ends June 30, 2003. Even though the mayor will be out of office (halfway through) that’s the concern,” Chief assistant to Mayor Maryanne Kusaka, Wally Rezentes Sr., said.
“We won’t really know (how concerned to be) until March of 2202 when we get the latest tourist numbers,” Rezentes Sr. said.
On the state level, Governor Cayetano is suggesting possible furloughs of state employees instead of layoffs.
The governor said he needs a new law to effectuate such a change in policy and is considering calling another special legislative session.
