For years now, the City’s operating costs have been climbing higher and higher into the billions of dollars–and with the addition of a $5.3 billion rail project, the capital budget has skyrocketed from the millions of dollars into the billions of dollars. Last Wednesday, the City Council advanced a $1.8 billion operating budget and a $2.1 billion capital budget for the fiscal year 2011. Only a handful of members of the public turned out for the meeting. For those of you who missed it and want to know where your tax dollars are–and aren’t–going, here’s your crib sheet to the latest draft of those budget bills.

The long run

The City is asking for $2.1 billion for its capital budget. That money funds long-term projects, like repairs to and upgrades of local infrastructure. Here’s how the City breaks down the major components in its capital spending, not including $300 million for construction-related projects.

Chart showing the City’s plans to spend the money.

Slush

Council member Ikaika Anderson continues to fight for the elimination of funding vacant positions, defined as City jobs not filled as of July 2009. Anderson–who says he only voted to approve last week’s version of the operating budget in the interest of advancing the process–says scrapping funding for vacant positions would reduce the size of government for better, and save $15 million. Other Council Members argue that reducing positions could leave the City dangerously unprepared, especially with the Asia-Pacific Economic Cooperation forum planned for Honolulu in the fall of 2011.

“Where we have our differences is just how much money and how much flexibility the administration needs to have,” says Budget Chairman Nestor Garcia of Anderson’s proposal. “I don’t anticipate the size of government to expand greatly but I still need to believe that the administration has to have flexibility to hire people. Case and point: The APEC conference that’s coming next year. How [many] more police officers, how [many] more firefighters, how [many] more ambulance drivers is the administration going to have to supply to make sure these heads of state feel comfortable?”

Anderson says he believes there’s still a way to reach a compromise so that the City is prepared to pay emergency workers and others overtime when needed, while still cutting costs at a time when thousands of existing City workers face mandatory furloughs. He says his proposal would serve to help those who already have City jobs.

“It is at the purview of the legislative branch for us to appropriate monies to the administration and let them fill their hires as they see fit,” says Anderson. “I would like to ensure the hardworking men and women of the City’s workforce: This proposal does nothing to harm any of you. All of your jobs, every single position that is filled by a warm body, is not touched.”

Take a hike

One of the revenue-raising plans within the current version of the budget involves a property tax hike for non-occupant homeowners. It’s aimed at increasing costs for those local homeowners who don’t actually live in Hawaii, but several council members say they worry that homeowners will simply pass along the extra expense to the Hawaii residents who rent from them. Council members also say some Honolulu families–like low-earning homeowners who have multiple properties in one resident’s name for multi-generational living–could still be hit hard by the proposal.

Going up

Mayor Mufi Hannemann says if it weren’t for “uncontrollable” spending variables, the budget would actually be down to $1.5 billion for fiscal year 2011. Here are the areas in which, he says, funding is going up whether we like it or not.

• Asian-Pacific Economic Cooperation, or APEC, conference: $14 million extra for police, fire, emergency management and emergency services
• Scheduled pay raises for police, firefighters and bus drivers given agreements already reached
• Fringe benefits–including unemployment, workers’ compensation, retirement and health services–for all City workers are going up $16 million
• The Federal Insurance Contributions Act tax, better known as FICA, which the federal government imposes on employees and employers to fund Social Security and Medicare, is increasing.

More transparency

In addition to advancing the operational and capital budgets last week, the City Council passed a resolution that requires City officials to release more detailed accounts regarding financing of the proposed $5.3 billion rail project. Multiple council members requested a complete list of workers the City is paying with rail monies, as well as thorough explanations of what those workers are being paid to do.

Less transparency

The City is proposing $123,000 less for ‘Olelo Community Television to broadcast Council hearings.

The operating budget–Pieces of the pie

An unfathomable sum of money though it is, $1.8 billion only goes so far. Our chart shows how the City is planning to parse out appropriations from Bill 15, its proposed 2011 operating budget.

So where does this chunk of change come from? A lot of it comes from the taxpayers’ coffers. City officials say they have about $2.2 billion dollars to work with. Our chart also shows where they got it.

The Honolulu proposed operating budget chart.

Off the chopping block

Each year, a variety of arts, recreation and other programs face the possibility of funding reduction or even elimination. With the approximate allocations detailed below, the following entities appear better positioned to survive another year with the City’s help.

• Parks programs: $21.1 million
• The Royal Hawaiian Band: $1.9 million
• Neighborhood Commission: $910,000
• Mayor’s Office of Culture and the Arts: $718,000

Bad news and sliver linings

The City Council deliberates again on the budget in its May 24 meeting, which will be the last time council members can vote on new amendments before the full council takes a final vote on June 9.