HONOLULU — Declaring that too many Hawaii families are “just a paycheck away” from homelessness, Gov. Linda Lingle on Monday proposed $63 million in tax cuts for lower-income families and an ambitious plan to build more low-cost housing. The Republican
HONOLULU — Declaring that too many Hawaii families are “just a paycheck away” from homelessness, Gov. Linda Lingle on Monday proposed $63 million in tax cuts for lower-income families and an ambitious plan to build more low-cost housing.
The Republican governor, in her midterm State of the State address, also proposed expansion of early preschool education and a separate school district for charter schools.
“There are too many families in our state struggling to survive and too many families just a paycheck away from having to move in with relatives or live on the beach,” Lingle told legislators in an address broadcast across the islands.
Lingle, who has touted her fiscally conservative government for the past two years, tacked more numbers to her latest proposals than in years past. That’s because the state is now in the position to spend a little more, she said, citing a growing Hawaii economy.
“I think you’re seeing a little bit of a change today in that we did propose some programs that will cost money,” Lingle acknowledged shortly after her speech before House and Senate members.
During the 40 minute address interrupted 36 times by applause from legislators and a packed gallery, Lingle once again proposed to increase the state standard deduction for income tax over three years to about half the federal deduction for taxpayers who don’t itemize.
The state deduction has been stuck at $1,500 for 16 years, while the federal has grown to $4,850.
“This is the single most important thing the Legislature can do if they want to help those individuals and families who are living paycheck to paycheck,” Lingle said in her speech.
The Democrat-controlled Legislature has twice rejected the governor’s proposal to raise the standard deduction and defeated a similar proposal four years ago by her Democratic predecessor, Gov. Ben Cayetano.
But this year, legislators have come up with their own tax-cutting measures, including a bill introduced by Rep. Bob Nakasone, D-Kahului-Paia, that would raise the state deduction to 60 percent of the federal standard deduction over three-years.
Another tax cut proposed by Lingle is a new food and medical tax credit for any worker or family earning $40,000 or less per year — about 40 percent of Hawaii’s population.
The two proposed tax cuts total $63 million, she said.
Lingle said she has been encouraged in meeting with majority Democratic legislative leaders whose cooperation will be required for any of her plans to be realized.
“Their willingness to sit and talk about procedural matters as well as some of the important issues facing our state added to my already hopeful and optimistic feeling about the future,” she said.
After the speech, she told reporters she’d be open to changes in her plan by the Democrats. “It doesn’t have to be exactly the way I proposed it, the same way it doesn’t have to be exactly the way they proposed it,” she said.
Senate President Robert Bunda, D-Kaena-Wahiawa-Pupukea, echoed Lingle’s hopes for reconciliation.
“I’m glad that the governor has come around and looked at our proposal and looked at it very, very responsibly. Hopefully we get some good done this year,” Bunda said.
Creating affordable housing in Hawaii — where the median price of a house in some places has soared past $500,000 — also topped the topics presented by Lingle.
Lingle proposed to reward developers who build affordable housing with tax credits up to $4,000 for each of the first 2,500 of the units completed by 2008.
Her plan also includes faster government approval for low-cost housing projects, increased funding of affordable rentals and money to repair public housing.
She expressed opposition to any further transfer of money out of state’s housing funds for other purposes. More than $200 million has been taken from the funds and placed in the state’s general fund since 1995, contributing to the state’s present housing shortfall, she said.
“We cannot afford to fall short of meeting such a basic need. And we can never, ever accept that this is a problem that will simply always be with us,” she said.
Lingle also offered an expansion of early childhood education through financial aid to families and outreach programs.
The proposal would cost $5 million and make it possible for 3,000 more children to go to preschool, according to the governor’s office.
Lingle also called for more support of charter schools, proposing to lift the cap on the number of new charter schools in the state, as well as legislation that would give charter schools more funding.
Charter schools, established under federal law, receive public money but operate under fewer restrictions than other public schools, allowing them more freedom in what and how they teach.
While the governor’s efforts to break up the statewide public school district failed last year, this year she called for the creation of a statewide system just for charter schools.
Sen. Norman Sakamoto, Senate Education Committee chairman, questioned whether the state is ready for more charter schools. With or without their own district, the current schools should be strengthened first, he said.
“For the charter schools, the auditor and others have raised questions. In essence it’s a fleet of leaky boats. I’m not sure if we want to launch more leaky boats,” said Sakamoto, D-Salt Lake-Foster Village.
In her biennium budget, Lingle also earmarked $20 million in new scholarship funds for the University of Hawaii and $25 million to fund university operations.
“This $45 million infusion of addition funding is the largest in university history,” she said to applause.
Also set aside are $80 million to renovate and replace campus buildings and $20 million to build a Hawaiian Language Building at Hilo.
Lingle concluded her speech with a call for unity and compromise. After two years of lawmakers getting the chance to know her a little better, the people want results, she said.
“No one who’s paying attention can fail to see the golden opportunities that lie before us. This is our time — yours and mine. Let’s not squander these opportunities,” she said.
On the Net: Gov. Linda Lingle: www.hawaii.gov/gov/
Hawaii State Legislature: www.capitol.hawaii.gov
