Brian Schatz, the chairman of the Democratic Party of Hawaii, called for a new round of contract negotiations.

State House Minority Leader Lynn Finnegan, R-32nd (Lower Pearlridge, `Aiea, Hälawa), suggested that the only alternative now is layoffs.

From Schatz:

The Governor was trying to take a shortcut, and when it comes to the law, shortcuts don’t work.

Judge Sakamoto today confirmed that no one is above the law. Hawaii law clearly requires collective bargaining, so this wasn’t a close call from a legal standpoint.

Now it’s time to sit down and get realistic and devise a plan, not a news release or a legal counterattack. The unions have expressed a willingness to take some pain, and the legislative leadership is suggesting a possible path. Hawaii needs the Governor to help lead us out of this impasse, and she can start with a practical and private negotiation about what comes next.

From Finnegan:

It is ironic that the Court’s decision comes on the same day that national unemployment numbers have hit a 30-year high. The Governor’s plan addressed our State’s deficit while keeping people in their jobs.

In similar cases, other state courts have sided with their Governor's ability to furlough in order to address a large budget shortfall. Without the furlough option or an appeal by the State, the only other decision is to move forward with layoffs.

Unfortunately, history shows that layoffs under collective bargaining procedures cause major disruption in services, are difficult and very slow to implement, and achieve less than expected savings.  This was the case during Gov. Cayetano's administration.

In an e-mail this week, his committee urged supporters to sign an online petition or volunteer for grassroots organizing. Donating money would be nice, too, they say, just to let the mayor know:

Over the next several months we will be fundraising and friend-raising statewide and believe our efforts will demonstrate the breadth and depth of support for Hannemann’s candidacy. It is our sincere hope that you will join in our efforts.

If you want to be a part of this special movement, there are various ways you can help. First, you can encourage Mufi to run for Governor by signing our online petition. Also, you can sign up to volunteer for our grassroots organization.

Finally, you can make a small donation of $50, $25, $10 or whatever you can to let Mufi know you would support his candidacy to be the next Governor of Hawai`i.

Brian Schatz, the chairman of the Democratic Party of Hawaii, told state workers to remember the issue in next year's governor's race.

Please, please remember this moment when Duke Aiona comes back around in 2010.

Jonah Ka'auwai, the state GOP chairman, used a press release to take a poke at union leaders who back Democrats' campaigns.

If the bosses really want to talk about fairness, I challenge them to take a pay cut alongside their members during this difficult period while reducing the dues taken from their workers' paychecks.

Let's see them put a few dollars back in the pockets of the rank and file instead of the Democrats' campaigns.

In a June 22 letter, Toguchi asks lawmakers to consider using money from the state's hurricane relief fund and rainy day fund and temporarily raising the general-excise tax to help preserve funding for schools.

Public-sector labor union leaders have made similar suggestions to offset Gov. Linda Lingle's furlough plans but have not yet publicly called for a special session.

State House and Senate leaders have said they have no plans to return in special session unless they are called back by Lingle. But lawmakers in both chambers will caucus privately on Wednesday to discuss Lingle's potential vetoes and the topic of a special session may come up again.

Some within the state Department of Education have complained privately that the BOE is dragging its feet on spending cuts.

Toguchi cites a paper by the Center on Budget and Policy Priorities, a liberal public-policy group, that found that spending cuts to state services can be more harmful to state economies in a recession than properly structured tax increases.

From Toguchi's letter:

It is important to note, however, that even if Hawaii were to utilize special funds or raise the GET, the Department of Education as well as other state agencies would still face drastic budget cuts.

But by raising revenue and minimizing those reductions, the legislature would ensure schools can guide our students toward success and place the state on the path of economic prosperity.

Attorneys for Superferry argue that the major secured creditors -- the federal Maritime Administration and Guggenheim Corporate Funding  -- prefer that the case remain in Delaware.

The filing is interesting for its tone.

Superferry executives aggressively courted the state for years, helped convince state lawmakers to approve $40 million in harbor improvements, and urged the Lingle administration to exempt the harbor improvements from environmental review, which led to the legal challenges that wound up halting the project.

Now?

The State of Hawaii’s contention that a transfer of venue is warranted for the protection of its interest in a failed business enterprise that at one time received government support simply finds no support in the case law.

Sadly, it appears that only the State of Hawaii has refused to accept the fact that the Debtors’ were compelled to cease operations months ago as a result of an adverse judicial ruling that shut down ferry services, having terminated virtually all of their employees, with no assets remaining in Hawaii.

The Debtors have moved to abandon their vessels and are proceeding with the abandonment or liquidation, as the case may be, of their remaining assets.

To suggest, as the State of Hawaii does in its Motion, that “(t)he inherently interconnected nature of the Debtors (sic) operations and the interests of the State and its citizens strongly militates in favor of transferring venue to Hawaii,” flies in the face of common sense and logic.

Superferry attorneys go on to cite the fact that Hawaii “allegedly spent $40 million in taxpayer monies years ago” to help Superferry and claim that the state’s surprise the bankruptcy was filed in Delaware “bespeaks a faux naivete.”

As for the state’s unique interest in the case?

These Debtors stopped operating months ago, and they have little interest in engaging in significant legal disputes with the State of Hawaii when it appears that its claims, if ultimately allowed, may receive pennies on the dollar.

Superferry attorneys also argue that the issue of the operating agreement with the state should not be a matter for the bankruptcy court, given that Superferry “ceased ferry services months ago and have no intention of returning to Hawaii to resume those operations.”

Karamatsu, an attorney who owns an Internet retail business, is the chairman of the House Judiciary Committee. He is also a former vice speaker.

From his statement:

I am honored that my name has been mentioned in the community as a potential Lieutenant Governor candidate for the last several months. With the support of my family, friends, and many in the community, I am excited to explore the possibility of serving this great state from its second highest office.
I am determined to ensure that Hawai̒i is the best place in the world.

Karamatsu joins several Democrats who have shown interest in the race.

For those who may have lost count, here is a refresher: State Senate Majority Leader Gary Hooser; Democratic Party of Hawaii chairman Brian Schatz; Honolulu City Councilman Donovan Dela Cruz; state Sen. Robert Bunda; Honolulu City Councilman Rod Tam; and state Sen. Norman Sakamoto.

State Rep. Joseph Souki also told the Star-Bulletin’s political blog recently that he may go.

Abercrombie, a Democratic candidate, has scheduled eight fundraisers since he announced his campaign in March, five in June alone. Aides say his birthday fundraiser on Monday evening at the Hilton Hawaiian Village, featuring an appearance by actress Kelly Hu, will include a keynote speech by the congressman outlining how he would govern if elected.

Aiona, a Republican candidate, has held 27 fundraisers since 2007 and has had eight in June, including his birthday bashes. Aiona has been in California for fundraisers at the Regency Club in Los Angeles Thursday, a gathering in Newport Beach Friday, and a meet-up at Trader Vic’s in Palo Alto today.

Honolulu Mayor Mufi Hannemann, who has formed a committee to raise money for a potential run for governor, has his first fundraiser this evening hosted by attorney Bert Kobayashi, Jr.

Bill Kaneko, Abercrombie’s campaign manager, reminded the congressman’s supporters in an e-mail on Friday of the importance of giving before the end of the month:

The campaign finance reporting period ends on June 30. That means there is still time to make a donation and be part of the first quarter fundraising report. As you may know, these reports are scrutinized by the news media and others to gauge momentum. You can help send a signal that Hawaii wants change. The amount we will have raised is one thing, but the number of donors we will report is truly astonishing. In three months we already have over 500 donors. That's an amazing accomplishment and a sign that a true grassroots movement is brewing.

But Brian Schatz, the party’s chairman, told Democrats in an e-mail Thursday that they should urge the governor to tap the state’s hurricane relief fund instead of cutting public education.

Union leaders have suggested that the hurricane relief fund, the state’s rainy day fund, and an increase to the state’s general-excise tax could be alternatives to the governor’s furlough plans.

Interestingly, Schatz urged Democrats to contact the governor, not House and Senate leaders, who have the power to return in special session if they wanted to address the budget deficit sooner than next session. House and Senate leaders have said they have no plans to come back unless they are called by the governor.

“I think all options have to be on the table and both the Legislature and the governor have a lot of thinking to do,” Schatz told us.

From his e-mail:

During this unprecedented fiscal crisis, I'm glad that there are some clear thinkers in leadership positions.

One of those leaders is Janice Akuna, who used to be Chair of the Hawaii Hurricane Relief Fund and now serves as a member of the Board of Education. She feels strongly that we ought to use the money remaining in the Hurricane Fund to prevent disastrous cuts in education.

In the below piece, published in today's Star Bulletin, she points out that the fund contains more than $180 million, was closed in 2001, and serves no purpose anymore. In fact, she points out, in the case of a hurricane, the fund wouldn't even be usable, homeowners would be covered by their insurance, and FEMA would also be able to help.

We think it's time to seriously consider using these monies to prevent catastrophic cuts in the classroom.

If you agree, please let the Governor know that you think this would be a better alternative than cutting public education.

In the 8-1 decision, the court found that a look at the girl’s belongings was permissible because school officials had a tip she may have been passing out pills and found contraband in a day planner the girl said she had given to another student. But the court determined that the search of the girl’s underwear was a violation of the Fourth Amendment right against unreasonable search and seizure.

A district court in Arizona and a three-judge panel of the 9th U.S. Circuit Court of Appeals sided with the school district, while the full 9th Circuit backed the student.

A Hawai’i state lawmaker pointed out a Hawai’i connection to the case: 9th Circuit Judge Richard Clifton, a former Honolulu attorney and only the second judge from Hawai’i to serve on the court, wrote the 9th Circuit’s initial opinion in favor of the school district.

From Clifton’s opinion:

Finally, we conclude that Defendants administered the search in a reasonable manner.

The search of Redding's person was conducted by two employees who were of the same gender as Redding, and the search took place in the privacy of the school nurse's office with the door securely locked. Cf. Beard , 402 F.3d at 606 (noting that "[t]he fact that the search[ ] . . . did not occur in the presence of only school officials, but rather in the presence of other students, . . . supports the conclusion that the search[ ] w[as] unreasonable").

Redding was not physically touched in any way during the search, and she was not asked to remove her bra or underwear. Furthermore, Defendants returned Redding's clothing and permitted her to get dressed as soon as the search was over. See , e.g. , Cornfield , 991 F.2d at 1323 (upholding a search under similar conditions); Singleton , 894 F. Supp. at 391 (accord).

Under those facts, we cannot say that Defendants' search of Redding's person exceeded the permissible scope prescribed by the Supreme Court in T.L.O.

For readers interested in the background, here is the exchange between the Press-Register and MARAD:

MARAD OFFICIAL ANSWERS TO Press-Register newspaper reporter's submitted QUESTIONS

Q: The Press Register would like to know whether or not talks between MARAD and Hawaii Superferry ended, and if so, when?
A: The company (Hawaii Superferry, Inc.) is in bankruptcy and the Maritime Administration has been in contact with that company through the Department of Justice.

Q: Does MARAD plan to take possession of the vessels? (They are currently docked at Atlantic Marine here in Mobile.)
A: Yes, whenever the bankruptcy court signals the Maritime Administration can take possession.

Q: And if MARAD does plan to repossess the vessels, when will that occur and what will be done with them?
A: The Maritime Administration does not know when the bankruptcy court will grant possession but when that occurs, the Maritime Administration will likely put both vessels up for sale.

Q: If they are to be taken or moved, where will they be headed?
A: These answers cannot be determined at this time in the litigation process.

Q: What are the future plans for the vessels? (We have also reported that the military plans to lease two fast ferries to fill the gap until its Joint High Speed Vessels are completed.)
A: The Maritime Administration has not as yet determined any future plans for the vessels at this time.