Kauai faces service cuts amid budget crunch

LIHUE, Hawaii (AP) - Kauai County lawmakers are considering tax increases and service cuts to cope with a projected $8.9 million budget shortfall.

County officials had hoped for a larger share of the transient accommodation tax the state levies on hotel rooms. State lawmakers raised the cap on the counties' portion of those revenues, from $93 million to $103 million.

The state's four counties wanted a return to the 44.8 percent share they used to receive. Their haul would have been $165 million in fiscal 2013 under that model.

The Garden Island newspaper reports (http://bit.ly/R8zh4d ) that Kauai's share of the transient taxes will rise by $1.4 million. The county had hoped for about $8.6 million more than that.

Kauai's budget shortfall owes mostly to collective bargaining raises for county employees approved last year.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.