State workers flooded the Capitol yesterday afternoon for a rally protesting Gov. Linda Lingle's furlough plans, accusing the governor of trying to wipe out the state's budget deficit at their expense.

Dressed in union T-shirts and waving signs at rush-hour drivers, they described furloughs as unfair and claimed the governor is scapegoating them.

Union leaders said state workers are willing to make sacrifices in the context of collective bargaining negotiations but are fighting back at Lingle because she is acting unilaterally.

"We know that our state economy is in tough shape," said Randy Perreira, the executive director of the Hawai'i Government Employees Association, the state's largest public-sector union. "We understand that, and in a fair way, we are all willing to make some kind of sacrifice. And we are prepared to make that sacrifice, and we will do so in a fair way.

"But in achieving that sacrifice, we are not going to let people stay above the law and trample on the Constitution."

A Circuit Court judge will hear requests tomorrow by union leaders to halt furloughs while the court considers union arguments that the governor's plan is unconstitutional and should be subject to collective bargaining. Lingle has said she believes she has implied authority under state labor law to order furloughs, and has warned of mass layoffs if she is stopped in court.

Lingle has said three furlough days a month for two years, starting this month, would save the state $688 million and would close an estimated $730 million budget deficit through June 2011.

Union contracts expired yesterday. The HGEA signed an agreement with the Lingle administration in February on a timetable for binding arbitration that may not produce a resolution until December. The United Public Workers public safety units can also pursue binding arbitration.

Other units at UPW, the Hawai'i State Teachers Association and the University of Hawai'i Professional Assembly have the option of striking.

"All options that are available to us as a union must be in preparation," Dayton Nakanelua, UPW's state director, told the rally. "All of those options."

J.N. Musto, UHPA's executive director, was the only union leader at the rally to specifically urge the state Legislature to return in special session to address the budget deficit. Union leaders have suggested that lawmakers consider using money from the state's hurricane relief fund and rainy-day fund and a temporary increase in the general excise tax to help with the deficit.

"We need the Legislature today — the Democrats are majority in both houses — to stand up and return and take the next step in this battle," Musto said. "We need them to come back into session."

MIXED FEELINGS

State House and Senate leaders have said they are not inclined to return in special session unless called back by Lingle.

State Senate President Colleen Hanabusa, D-21st (Nanakuli, Makaha), said she has not heard interest from colleagues for a special session. If lawmakers did return and passed an increase in the general excise tax, she said, it would likely be vetoed by Lingle. Hanabusa said she doubts there would be the two-thirds' votes for an override.

"That's a lot of blood to be shed for probably nothing," Hanabusa said.

Unless Lingle calls them back, lawmakers say, they will likely wait until next session, in January, to balance a two-year budget that has a significant gap because of lower-than-expected revenue projections.

State House and Senate Republicans acknowledged yesterday that Lingle did not have to order furloughs or layoffs starting this month — because the deficit is projected over the next two years — but that they believe the governor is making the responsible choice by acting now rather than waiting until the financial hole deepens.

"I've talked to public workers, and everyone is scared," said state Sen. Sam Slom, R-8th (Kahala, Hawai'i Kai). "Nobody knows what to do. It's disappointing that their union leaders have chosen to continue their attacks on the governor and not talk to their members about what can be done. It doesn't seem to me that they're looking for a resolution. They seem to be relying on the courts and public opinion. Yet if you talk to the public employees themselves, scared as they are they'll tell you that getting furloughed is better than getting laid off."

Several state workers said yesterday that they do not feel appreciated by the Lingle administration and are being unfairly portrayed as selfish for opposing the governor's furlough plans. The furloughs are equivalent to a roughly 14 percent reduction in pay.

HARDSHIPS CITED

Janelle Naone, a social worker who lives in Kane'ohe, said the loss of pay because of furloughs may lead her to cancel her home phone line and basic cable and reduce other spending.

"We're standing together in unity. I know a lot of co-workers who don't like the public misperception of us; it makes us feel unappreciated," she said. "Linda Lingle has been negotiating through the media, and that's unfair."

"Everybody knows the economy is not good, and we can't keep everything status quo, but this has to be done fairly. We just want a fair process."

Vern Lentz, who works in the city's payroll department and lives in Salt Lake, said furloughs and layoffs should be the subjects of labor talks. "It's not that we as government workers are not willing to make concessions, but they're dumping 90 percent on us," he said.

"I hope that we would not have the furloughs or layoffs without going to the bargaining table. If we do that and this is still the result, then so be it. But (Lingle) has to at least negotiate in good faith.

"I don't think this (rally) is going to change her mind, but it will get the attention of others who are thinking about running for governor."