Honolulu Star-Bulletin Local News

By Craig T. Kojima, Star-Bulletin
Gov. Ben Cayetano listens to a question from reporters
during the opening of the Legislature yesterday.



Cayetano:
My way needs no
tax hike

But lawmakers would have to
adopt his plan

By Mike Yuen and Jean Christensen
Star-Bulletin

Countering House Speaker Joe Souki, Gov. Ben Cayetano says there is no need to consider a tax increase to cover a $170 million budget shortfall that House leaders fear could grow.

The key rests in the Legislature accepting his financial plan, Cayetano said yesterday, following speeches by Souki (D, Wailuku) and Senate President Norman Mizuguchi (D, Aiea) that opened the 1997 legislative session.

"We believe that not only will we be able to avoid raising taxes, but in fact we can reduce taxes for segments of the population and still be able to afford a modest collective bargaining package," Cayetano maintained.

But if the Legislature rejects any aspect of his financial plan, cuts will have to be made, the governor said.

The details of his financial plan will be disclosed during his State of the State address Tuesday, Cayetano said.

Souki told the opening-day audience that he and every other House member oppose raising taxes.

But given the state's shortfall, Souki added, "I cannot absolutely nor responsibly promise 'no new taxes.'"

Mizuguchi said he, too, couldn't promise that isle residents wouldn't be hit with any new taxes.

"Right now, I'm not promising anything. We're making no commitment one way or another. We're leaving everything open," Mizuguchi said.

Cayetano said he concurred with Mizuguchi's call for the state to examine the possibility of selling to private interests its airport system and the $350 million convention center that is scheduled to open next year.

His administration is already exploring the possibility of privatizing airports and small boat harbors.

"So we're on the same track," Cayetano said.


By Ken Sakamoto, Star-Bulletin
Sen. Richard Matsuura, who's suffering from cancer,
prays with his family at the Legislature yesterday.



Mizuguchi explained that he wants the state to study the possibility of selling the airports and the convention center as part of an effort to bolster the economy and establish a privatization policy that could lead to an infusion of new funds into state coffers.

Souki, however, scoffed at Mizuguchi's privatization idea.

"I don't think a one-time cash infusion in anything is going to resolve any problem we have," Souki said.

"I think we need to make the pie bigger - not make the pie big for a little while and then come back to the regular size.

"I don't believe in one-time cash infusions. It doesn't help - not for the long term."

Cayetano hailed Souki's and Mizuguchi's speeches for their strong calls for cooperation among lawmakers.

Not only will there be more cooperation between the House and the Senate, there will also be more cooperation between the Legislature and his administration, Cayetano predicted.

"I think the old ways of doing things are gone," Cayetano said, alluding to what others have called political gamesmanship in which power was concentrated in the hands of a few lawmakers.

"The last two years, I think, were the last vestiges of the way the Legislature used to be run," Cayetano said.




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