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Hawaii's budget consumed more than it collected for four years heading into 1996. Calvin Say, chairman of the House Finance Committee, and Jack Suyderhoud, professor of business economics at the University of Hawaii, trace the crisis to double-digit revenue growth in the mid-1980s that swelled government before the economy contracted in 1991. Say argues the state has already "cut into the marrow" and turns his attention to so-called fixed costs — debt service, the employee health fund, and pension contributions — which together claim roughly a third of the $2.9 billion general fund. Suyderhoud questions the actuarial assumption of 6 percent annual wage growth used to set pension obligations, noting a 10 percent revision could free up $130 million. The two diverge on scope: Say insists little remains to cut operationally, while Suyderhoud argues no spending category should be off-limits. Callers press on state debt levels, welfare generosity — one study puts a Hawaii family of three's equivalent benefits at $30,000 a year — and the governor's failure to communicate a fiscal vision. Say also mentions gaming hearings around the state as a potential revenue measure under consideration for the coming session.
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Companion newspaper commentaries
Commentaries by the guests, published in The Honolulu Advertiser around the broadcast.
