A state money meeting is planned for tomorrow night in Lihue, and everyone’s invited. Two committees of state legislators, looking for the public’s advice on how to get Hawaii through an anticipated revenue shortfall of $315 million over the next
A state money meeting is planned for tomorrow night in Lihue, and everyone’s invited.
Two committees of state legislators, looking for the public’s advice on how to get Hawaii through an anticipated revenue shortfall of $315 million over the next two years, will conduct a hearing at 7:30 p.m. at Wilcox Elementary School. Come prepared to speak up, said Rep. Bertha Kawakami of Kauai.
“We strongly encourage the public to participate. It’s critical that we have a balanced perspective to help in our decision-making over the next four months,” said Kawakami, vice chairwoman of the House Finance Committee.
That panel and the Senate Ways and Means Committee are the chief budget-writing bodies in the Legislature, which will convene the 2002 session Jan. 16. Lawmakers are facing decisions on state budget cuts and possible alternatives, including use of the Hurricane Relief Fund.
At Monday’s hearing, Neal Miyahira, state finance director, will tell the gathering about Governor Ben Cayetano’s proposals and budget requests. Issues on which the committees want public input include proposed cuts of spending by all state agencies, including the Department of Education and the University of Hawaii, deferring the state’s contributions to the state employees’ pension fund, transferring $213 million in hurricane relief money into the state general fund, and a proposed $900 million for construction projects aimed at stimulating the state economy.
Cayetano gives his administration’s preferences for a state budget. It’s up to the Legislature to approve the final version.
The state Council on Revenues has projected a loss of $152 million in tax revenue in the current fiscal year, which ends June 30. The shortfall is tied at least partly to the economic impact on the tourism and travel industry since the Sept. 11, 2001 terrorism attacks.
Another $163 million drop in revenue is projected for the next fiscal year, creating the potential for the $315 million gap in the state budget that was approved last year.
Key elements of Cayetano’s financial plan for offsetting the shortage include the budget cuts and the $213 million in the hurricane relief fund. Not using the latter would result in larger reductions of spending for public schools and the UH system, he said.
“Exactly where the public thinks the cuts should be made is what we need to hear,” said Rep. Dwight Takamine, chairman of the House Finance Committee.
Also at issue is Cayetano’s suggestion of raising the liquor tax, and interest in opening casinos in Hawaii. Proponents see the latter as a new source of revenue for state government and employment. The gambling proposal is meeting opposition, however, largely based on its concerns over social impacts.
“These are difficult times, but we as a community must have general agreement as to where spending can be reduced or eliminated, so that we can get the state moving forward again,” said Sen. Brian Taniguchi, chairman of Ways and Means Committee.
The committees began conducting a series of hearings around the state last month. Tomorrow’s is the final one.
Editor Pat Jenkins can be reached at 245-3681 (ext. 227) and mailto:pjenkins@pulitzer.net
