Editorials
Monday, February 16, 1998

Reorganization plans
get cold reception

IT was not the Cayetano administration's finest hour when members of the governor's team went before Senate committees last week to promote a plan to streamline state government. The Star-Bulletin's Mike Yuen reported that the questions from three senators -- all Democrats -- "were so pointed that at times high-ranking administration officials defending the initiatives appeared uncomfortable."

Sen. David Ige noted that Cayetano about a year ago issued a report concluding that there was little value in combining state departments. He wondered if the report was a "snow job."

The committees decided to hold proposals to consolidate the Agriculture, Commerce and Business, Economic Development and Tourism departments into one. Officials from those deparments told lawmakers that each of their departments would save only about $200,000 from consolidation -- hardly worth the trouble. Sen. Suzanne Chun Oakland said it didn't make sense to tinker with the Agriculture Department when farmers are satisfied with the service they are receiving.

Meanwhile another administration proposal to merge the Budget and Human Resources departments into one Department of Administration won a preliminary OK, but without the proposed inclusion of the accounting, audit and procurement functions now in the Department of Accounting and General Services.

Consolidation of departments is pointless unless it results in elimination of duplication and thereby permits reduction in personnel. The administration failed to convince the senators that real economies would result from its proposals. This does not bode well for the rest of Cayetano's program to revitalize the state economy. It will have to make a better case than it did on government reorganization in order to prod the legislators into action. Saying we have to do something about the economy isn't good enough.

Riots in Indonesia

CHINESE merchants dominate commerce in Southeast Asia and have often been the scapegoats when the economy goes sour. It's happening again in Indonesia in the wake of the latest economic downturn. Indigenous Indonesians burned shops owned by ethnic Chinese, attacked churches and set cars ablaze during protests against rising prices in West Java towns.

The riots were the latest in a series of disturbances which have also hit other towns in Central and East Java and several islands in eastern Indonesia. Military and political analysts said they expected continued flare-ups as people vented their frustrations over rising prices. Five people have been killed.

The government has reinforced security in Jakarta to prevent trouble in the capital in advance of a meeting next month of the People's Consultative Assembly. That body is expected to re-elect President Suharto to a seventh five-year term in office.

But it is Suharto, not the Chinese merchants, who should be blamed for Indonesia's economic problems. The blatant favoritism of his government in awarding concessions, particularly to Suharto's children, and other corrupt practices have undermined confidence in the economy.

After three decades in power and with his health doubtful, Suharto should step down and let a younger, more vigorous leader take over. Blaming the Chinese will solve nothing.

Con Con vote

THE 1996 vote on holding a constitutional convention resulted in such confusion that another vote is in order. The House Judiciary Committee has approved a bill putting the question on the ballot for the November general election.

Two years ago, 163,869 votes were cast in support of a convention and 160,153 opposed. There were also 45,335 blank ballots. The Hawaii Supreme Court ruled that the blanks counted as "no" votes and concluded that the proposal had failed. But the ruling was contested, and federal District Judge David Ezra ordered a new election, to be held by December 1997. Then the state appealed Ezra's ruling, and his order was suspended by the 9th Circuit Court until the appeal was decided, which has not yet happened.

The best way out of this mess is to try to get a clear answer from the voters in November. Let the people, not the judges, decide. As for how they should vote, our suggestion is "no." There is no compelling reason for a constitutional convention at this time. If the Hawaiian sovereignty movement ever reaches a consensus on a set of proposals, they may require amendments to the state Constitution that should be considered in a convention. But until that happens, Hawaii can hold off on a convention.

That does not mean that the Constitution cannot be amended in the meantime. The Legislature can put amendments on the ballot. One amendment that should be adopted would give the governor the authority to appoint the members of the Board of Education.

Lottery proceeds

PROPONENTS of lotteries point to the good that can be done in financing government programs from the lottery proceeds. Florida, for example, earmarks all of its lottery money for education. But it's a fraud.

When the lottery was introduced in 1988, the state was spending 60 percent of its budget on education. Since then, that share has steadily dropped. The legislature, knowing the lottery money is available, allots less to education than it would have in the absence of the lottery fund. Count on that happening here, too.






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Rupert E. Phillips, CEO


John M. Flanagan, Editor & Publisher


David Shapiro, Managing Editor


Diane Yukihiro Chang, Senior Editor & Editorial Page Editor


Frank Bridgewater & Michael Rovner, Assistant Managing Editors


A.A. Smyser, Contributing Editor




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