Honolulu Mayor Peter Carlisle, the man who promised over and over to get Honolulu’s “financial house in order,” said he has discovered the city is actually less of a fiscal mess than he anticipated.

“Well, frankly, we’re in better shape than I thought we were going to be in,” Carlisle told Civil Beat Thursday afternoon. The mayor said the realization has been the biggest surprise to him as he’s gone through the budget process. His draft of the Fiscal Year 2012 budget is due to the City Council in March.

Carlisle is also going back on a previous estimate of a $100 million shortfall. It comes two weeks after former Mayor Mufi Hannemann challenged that figure.

“No, it does not (seem right) anymore,” Carlisle said. “It’s less than that.”

The mayor declined to say how much less, or offer a new estimate of the deficit. He’s also staying mum on the top candidates for budget director. It’s one of few key posts Carlisle has yet to fill, and he said he will name someone “by the end of next month.” Despite a shrinking spending gap, Carlisle said the changing financial picture is not all positive.

“It’s good news and bad news,” Carlisle said. “The good news is we’re in better shape than I thought we were going to be. The bad news is that we shouldn’t have a false sense of confidence that we don’t need to change the structure of city government. We do, and we’re going to.”

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