Governor Lingle announced she is vetoing tax increases contained within the budget passed by the Legislature. The budget does not include the $278 million demanded by the Governor for employee compensation cuts. The budget does contain a reduction in funds for the University of Hawaii which will become worse if the tax increases are not…

HB 1550 CD1 passed which provides that purchase of retirement credit in the hybrid plan from a 403(b) is subject to income tax. The effective date is July 1, 2009. HB1536 CD1 requires a 5% reduction in pay for state executives and legislators effective only for the biennium. Salaries shall be restored July 1, 2011. The effective date is July 1, 2009.

This bill is in conference committee scheduled for April 24. It is unlikely there will be resolution on this issue.

The University of Hawaii Professional Assembly (UHPA) received the HLRB order declaring an impasse in contract negotiations with the State and UH administrations, and appointing a federal mediator to assist the parties in reaching an agreement.