Hawai'i's four mayors yesterday rejected suggestions they are delaying a potential settlement with the Hawai'i Government Employees Association, arguing that an agreement of such scope and cost requires thorough examination.

Gov. Linda Lingle said Tuesday that an announcement of a new contract with the state's largest public-sector union has been delayed in part because none of the mayors had signed off on the deal. Under state labor law, the Lingle administration needs at least one county mayor to agree because the contract involves both state and county workers.

In a joint statement yesterday, the mayors said they had sought clarification on several key issues and had only received information back on Tuesday.

"Any talk of 'mayors not being in sync' with what's been progressing is total hogwash," wrote Honolulu's Mufi Hannemann, the Big Island's Billy Kenoi, Maui's Charmaine Tavares and Kaua'i's Bernard Carvalho Jr. "We are intimately involved and have been in constant discussions with the governor's staff and with the key officials of the HGEA.

"We understand there are still some delicate issues to be resolved between the employers and HGEA, but none that should be considered deal-breakers. We're anxious to conclude the contract talks and expect to reach a decision soon."

Hannemann, Kenoi and Tavares are traveling out of state but are being updated by staff.

The potential settlement with the union involves up to 18 furlough days this fiscal year and 24 furlough days next fiscal year to help the state reduce labor costs and close an estimated $1 billion budget deficit through June 2011.

Counties have already approved balanced budgets this fiscal year, but are facing potential shortfalls next year, when the impact of the recession on property taxes is fully felt. The state, which depends on general-excise and use taxes, hotel-room taxes and individual income taxes for revenue, felt the brunt of the recession sooner.

Sources familiar with the negotiations said among the issues the mayors have been reviewing are whether furloughs for county workers are needed this fiscal year or whether to wait until the next fiscal year starts in July. Mayors may want the flexibility to furlough workers later this fiscal year to contain costs.

Another issue, sources said, is whether counties want to continue to cover 60 percent of worker health care premiums. The Lingle administration's negotiating position has been to freeze the state's health care spending at last fiscal year's level, which has meant that state workers have had to cover a 23.4 percent increase in interim premiums since July.

Counties may also want to cap health care spending in anticipation that health care costs will rise again by next fiscal year.

Trustees for the state Employer-Union Health Benefits Trust Fund voted Tuesday to keep the interim premiums through the end of the fiscal year for state and county workers covered by the Hawai'i Medical Service Association and HMA Inc., rejecting a 13.6 percent rate increase recommended by a consultant. Fund trustees have yet to announce the status of Kaiser Permanente premiums.

None of the issues raised by the mayors are considered deal-breakers, sources said, but the mayors said they needed time to review the contract language.