The Hawaiian Humane Society will no longer pick up stray animals or respond to complaints of barking dogs under a new city contract that went into effect Thursday.

Jesse Broder Van Dyke, a spokes­man for Mayor Kirk Caldwell, said the Humane Society’s slate of services is being reduced because the city could not meet the nonprofit’s demand to increase its budget by $800,000.

The Caldwell administration blames the Hono­lulu City Council for a $26 million shortfall in the city budget and is warning the public that there will be additional announcements about the effects of the shortfall.

Council leaders, in response, pointed the finger back at the administration, saying they passed a balanced $1.8 billion budget in June.

While the city would like the Humane Society to continue the same services as the previous contract, it cannot meet the organization’s need for additional funding because it must focus on its core services, Broder Van Dyke said.

He cited the City Council’s failure to approve a hike in the city’s fuel tax, which would have added $15 million, its decision to award $8 million to $9 million in grants to nonprofits, and a larger-than- anticipated collective-bargaining agreement with city police officers.

While Caldwell has warned the nonprofits targeted to receive the money that they might not get the funding, there is no way the city can use the money for other purposes, Broder Van Dyke said.

Other impacts to the public stemming from the budget shortfall are still being hashed out by Managing Director Ember Shinn’s office and will be discussed at a future date, he said. All agencies, including the Police, Fire and Emergency Services departments, will be affected.

Those comments drew rebukes from Council Chairman Ernie Martin and Budget Chairwoman Ann Koba­ya­shi.

Martin, in a statement, said the Council complied with its mandate to pass a balanced budget.

"Frankly speaking, the mayor’s original budget was based on the false assumption that the Council would agree to a fuel tax increase. His only significant revenue generating proposal was a five cent a gallon increase that would have had Hawaii drivers paying the highest gas tax in the country."

Caldwell’s proposal was shot down by the Council early in the budget process.

"The Council stands ready to work with the mayor on his initiatives to generate more revenue or consider a plan to reduce the cost of services, but the Council is highly unlikely to ever rubber stamp a tax increase or condone abrupt cuts in services such as the recent reduction of funding to the Humane Society as a way to make ends meet," Martin said.

Kobayashi said she was surprised to hear the comments and expects to get an explanation of the budget shortfall from Budget Director Nelson Koya­na­gi at the next scheduled Budget Committee hearing Aug. 21.

Kobayashi said she wants to know how much of a cash balance, also known as the "carryover," was brought forward at the end of last year’s budget on June 30 into the current year, which began July 1.

Koyanagi late Thursday afternoon told the Star-Advertiser that the carryover amount is $120 million but that all of it "was used to balance the budget" and has been designated for specific purposes.

Like Broder Van Dyke, Koya­nagi refused to provide details. "Cuts were made (to city agencies by the Council), and we’re just going to have to live with them," he said.

The Humane Society is now providing fewer services for the city under a new, one-year contract that takes effect immediately, the two parties said Thursday.

Among the most significant changes: The Moiliili nonprofit will no longer be responsible for picking up stray dogs or cats, a change that required the agency to lay off three investigators Wednesday, Humane Society spokes­woman Jacque LeBlanc said. The organization captured 3,300 strays in the last fiscal year.

It will also no longer respond to barking dogs. It addressed 1,700 of those incidents last year.

The nonprofit will continue to shelter pets, its core mission outside of the city contract, and fulfill its contract duties of responding to loose, aggressive dogs and animal emergencies.

The Humane Society has been under a $2.3 million annual contract and will receive the equivalent amount this year. (The contract amount is actually $2.1 million for an 11-month period that began Thursday.)

The Humane Society has had the contract to run animal control operations for the city for a number of years.

The city rebid the contract recently, and the Humane Society was the sole bidder. The organization, however, asked for an $800,000 increase to deal with rising costs of a number of items, from electricity to veterinary medicine, LeBlanc said.

The same issues are being faced by animal welfare organizations across the country, she said.

City Customer Services Director Sheri Kaji­wara said "the Humane Society does a wonderful job" but that the city cannot provide all it wants because core services take priority.

Kajiwara said she anticipates an increase in 911 calls, "but we’ll work with HPD and ensure that they have the services they need and the resources they need."

Broder Van Dyke, however, said no additional funding is being made available to the Hono­lulu Police Department.

HPD issued a statement Thursday afternoon saying the new contract will have "minimal or no impact on police operations."

"While (police) have not seen the final contract, it is our understanding that the Humane Society will no longer pick up stray animals and is advising the public to take stray and injured animals to its Wai­alae facility," the HPD statement said.

The layoffs of three field investigators Wednesday leaves four investigators and one dispatcher at the Humane Society, LeBlanc said. In all, the organization kept 10 of 15 proposed positions for the city contract. Two other people were transferred to other positions on the Humane Society’s 75-person staff.

The Humane Society’s overall annual budget is about $6.1 million, LeBlanc said. Other revenues come from fees, grants and fees for registration or services, she said. The organization, celebrating its 130th year, has had some contract with the city since 1915.