Tax hike plan
causes strife
among DemsRepublicans are exploiting
By Mike Yuen
the disunity that results
Star-BulletinGov. Ben Cayetano's proposed general excise tax hike to revitalize the state's economy has become a lightning rod for Democratic Party disunity, which Republicans are exploiting. A faction of Cayetano's own party, including Chairwoman Marilyn Bornhorst, has expressed its displeasure with the initiative, which would raise the excise tax from 4 percent to 5.35 percent. The dissidents plan to testify tomorrow when the Senate Ways and Means Committee holds a hearing on the tax-related recommendations from Cayetano's economic revitalization task force.
"I hate the idea of raising the general excise tax," said Bornhorst, who expects to testify tomorrow. "We'll start wiping out small businesses. What good is it then to bring in another Wal-Mart?"
Rep. Barbara Marumoto of Waialae Iki, who like her GOP colleagues has adopted an election-year strategy of positioning herself as a staunch foe of the excise tax hike, said: "I think (Bornhorst) was right on. I think she understands that it's the middle class that's going to be adversely affected by an excise tax increase."
Senate President Norman Mizuguchi (D, Aiea) said he was "really concerned" and disappointed by Bornhorst's comments: "Statements like hers make it very difficult because it is definitely a criticism of the governor, the leaders of the House and Senate, who are majority members."
Bornhorst, former party Chairman Richard Port and about 10 other Democrats, mainly affiliated with the Rainbow Coalition, met with House Democrats during a closed-door caucus Monday to challenge the proposed tax increase.
Bornhorst said the House majority was told that if the state tax system, which now imposes its highest income tax rate at $21,000, were revamped, the wealthy should carry a greater burden.
House Speaker Joe Souki (D, Wailuku) said he doesn't believe that Bornhorst and the others present, which included Alan Murakami of the Native Hawaiian Legal Corp. and social services advocate Bob Nakata, "represented the main forces of the Democratic Party."
Late last month, the state Democratic Central Committee, controlled by the Rainbow Coalition, agreed to urge legislators to intensely scrutinize the task force's tax-related recommendations and make them more friendly to working people. A move to table, or effectively kill, the motion failed by a 17-14 vote with one abstaining.
Port acknowledged that "an odd unity" has emerged between party leaders and the GOP.
"We'll take shots at the Republicans in due course," Port said.
Judiciary's mission:
By Craig Gima
recover unpaid fines
Star-BulletinThe state Judiciary is hoping to hire a private collection agency to go after about $9 million in delinquent traffic and other fines. The Judiciary may also get permission to revoke the professional licenses of people who have unpaid fines and is seeking an opinion from the attorney general to see if it has the authority to garnish wages and intercept tax refunds.
"There are many pieces to the puzzle. I think one approach is not the answer. It's a combination of approaches," said Michael Broderick, administrative director of the courts.
Broderick testified before the Senate Judiciary Committee yesterday in support of a bill that would allow the courts to hire a private collection agency.
The bill would also allow the collection agency to charge a fee in addition to collecting the delinquent fine.
State auditor Marilyn Higa, who issued a report critical of the Judiciary's inability to collect fines, testified she supports the intent of the bill but had no opinion on the specifics.
In response to a question, Broderick rejected the idea of tying funding for the Judiciary to the collection of fines.
The Senate committee yesterday also heard testimony on a bill to give judges a 5 percent pay raise.
"What this is about is fairness and respect for a co-branch of government," said Circuit Judge Frances Wong of the Hawaii State Trial Judges Association.
Aki ‘truly sorry’ his legal
By Pat Omandam
woes occupied Senate
Star-BulletinInattentiveness has cost him and his family dearly, says state Sen. James Aki in issuing his explanation to the Senate on the events leading to his indictment on felony gambling charges. Lawmakers hope this is the final chapter in the Senate investigation of Aki, who last November was granted a deferred acceptance of his no-contest plea for allowing illegal bingo on his property in 1994.
Sen. Avery Chumbley (D, Kihei), who last week hoped Aki would issue an apology for his actions, yesterday said he considers the issue over.
"Sen. Aki has shown remorse in his explanation letter," he said.
In a two-page letter to Senate President Norman Mizuguchi and accepted by the Senate yesterday, Aki said he agreed to offer his family's Nanakuli land at no lease to a church group in his community to help it raise money through social bingo for underprivileged Polynesian children in Waianae and Nanakuli.
Aki (D, Waianae) said when he first became aware that alleged illegal activities were occurring on his property, he immediately terminated church activities.
Aki stated he never personally profited in any manner from the church bingo.
In helping the children, Aki said he was criminally charged and subject to enormous stress, embarrassment and humiliation, with his property potentially subject to forfeiture. Also, Aki said he unintentionally caused fellow senators to be distracted.
Aki said he put his trust into the church group, and realizes now that he was not as diligent as he should have been in overseeing the activity. He ended his letter by stating he will remain devoted to serving the people of his district and the state.
"My inadvertence has cost me and my family dearly," Aki said. "My inadvertence has caused some of my fellow senators to expend time and efforts that could best be served in more productive ways."
"For that, I am truly sorry," he said.
Testimony mixed on land
By Craig Gima
use, fate of commission
Star-BulletinRobert Wenkam believes efforts in the state Legislature to change or eliminate the Land Use Commission will destroy what he helped create. As an original member of the commission in 1960, Wenkam said he helped zone all of the land in Hawaii, leading to "the large open space we have today."
The commission came about because large sugar plantations did not want urban encroachment on their lands, Wenkam said.
"There was too much buying and selling of land. No one was watching over the future," he said.
But now that many plantations have gone out of business, Hamakua farmer Robert Shioji thinks the commission should be changed to help protect farms like his from developments.
"Right now, its all Bishop Estate around me," Shioji said. "If they can get highest and best use, let's face it, they will."
Shioji supports a bill sponsored by Sen. Randall Iwase (D, Mililani) to change the commission's powers and duties, and its name to the State Planning Commission.
The bill would also set up a State Agricultural Lands Commission to designate important agricultural lands and to guide the future of those lands.
Wenkam and Shioji were among those who testified at a public hearing on the bill yesterday.
Environmentalists oppose the measure, as well as another backed by the Economic Revitalization Task Force that would eliminate the Land Use Commission.
David Frankel, director of the Hawaii chapter of the Sierra Club, testified the bill would transfer jurisdiction of 800,000 acres of land from the state to the county -- land, he said, that includes habitats for endangered species.
"If they are transferred to the counties, the public loses the ability to protect them," he said.
Frankel said the counties do not have the resources or the openness in their decision-making process that the Land Use Commission does.
But the task force believes the commission just adds another layer of bureaucracy.
Iwase agrees, but said eliminating the Land Use Commission is unconstitutional.
The senator said his bill would redefine the responsibilities of the commission and still allow the state control of agricultural lands.
Cost, logistics wilt bill
By Pat Omandam
requiring leis for air arrivals
Star-BulletinWhen Harry Nunnemacher of Milwaukee stepped off the plane at Honolulu Airport on Saturday, his tour agency gave him a lei. While it was welcomed, Nunnemacher yesterday said he didn't know what to do with it 20 minutes later.
Similar sentiments were shared by Chicago-area tourists Jim and Ann Andrew. The couple, who arrived Sunday for a two-week visit, said a bill before the Legislature requiring the state to give leis to airport arrivals is a waste of money.
"It's a nice touch, but we would rather see the (state) employees get a pay raise," Ann Andrew said while sightseeing at the state Capitol.
The House Tourism Committee yesterday voted 4-2 to hold the bill, which would have required the Department of Transportation to give leis and provide Hawaiian music at all state airports.
House Bill 2464, introduced by Rep. Gene Ward (R, Aina Haina), was met with immediate opposition by transportation officials, who calculated that -- at $1 a lei -- it would cost the state at least $8 million.
Transportation Director Kazu Hayashida yesterday testified there were 7.7 million passengers who got off planes in Honolulu, Kahului, Kona, Lihue and Hilo in 1996. During the first nine months of 1997, about 5.9 million people arrived, he said.
Hayashida also opposed the plan because there is no way to determine whether an arriving traveler is a resident or visitor. And he's worried about storage, staffing and congestion.
After the hearing, Ward said the bill was intended to force state officials to be creative in tourism, because it had lost its competitive edge. As far as the cost, Ward said shell or plastic leis could be made for less than 10 cents each.
The Airlines Committee of Hawaii and the Hawaii Hotel Association favored the bill, but only if funding didn't affect the state's budget for the Hawaii Visitors and Convention Bureau or the federal Airport Special Fund.
