Senate panel quashes
cuts in benefitsPublic-worker unions launched an
By Mike Yuen
offensive against the House bill
Star-BulletinA Senate panel has shelved a House bill that state and county workers branded as draconian because it would have severely curtailed government-funded health and life insurance benefits for spouses, dependents and reciprocal beneficiaries. But after the 4-0 vote yesterday, Senate Human Resources Co-Chairman Brian Kanno warned government employees and their union representatives that lawmakers are still searching for ways to tame the state's budget crisis. That means they will be looking at other measures to curb government spending which also may spark their displeasure, said Kanno (D, Ewa Beach).
His panel, however, will not take away health benefits that government workers have gained over the years, Kanno said.
He added that the Senate is considering a managed-care system for retired public employees as a way to halt the spiraling cost of health care for current and retired government workers.
Another option would be to have all retired government workers enroll in Medicare, the federal health care insurance program for people 65 or older, he said.
The skyrocketing cost of the Public Employees' Health Fund is a major concern of Gov. Ben Cayetano's administration and many legislators.
In fiscal 1990, the fund cost the state $53.7 million. In fiscal 1999, the cost more than quadrupled to $229.5 million, with the state's premiums for retirees alone at $104.8 million, nearly double what was paid in 1990.
Eight years ago, there were 43,700 enrollees in the health fund, including 15,500 who were retirees. Next year, there will be a total of 61,200 enrollees, including 22,100 retirees, according to state Budget Director Earl Anzai.The bill that Kanno's panel quashed would have eliminated the state's and counties' contributions for spouses, dependents and reciprocal beneficiaries -- the equivalent of a spouse for couples that cannot legally marry -- except for retirees who retire by July 1, 1999.
That caused Garen Deweese of the Hawaii Government Employees Association, the state's largest public-workers union, to label the measure "the forced negative retirement bill."
HGEA and other government-workers unions launched an all-out lobbying effort against the measure, which would have meant that dependents would only get health coverage if their spouse or parent paid the full cost of the benefit.
Echoing other lawmakers, state Rep. Kenny Goodenow (D, Waimanalo) said he received more faxes and telephone calls about the health-fund bill than even the House's proposal to raise the general excise tax.
House Finance Chairman Calvin Say (D, Palolo) could not be reached for comment last night to determine if he intends to resurrect the measure.
The proposal would have saved the state about $10 million in fiscal 2000, Anzai said. He added he "welcomes any reasonable and equitable way" to cut the soaring cost of health coverage for active and retired state employees and their dependents.
The president of the State of Hawaii Organization of Police Officers, Honolulu Lt. Bennie Atkinson III, said, "I'm tired of these attempts to take away the benefits of officers.
"If the bill were to become law, 280 officers in the Honolulu Police Department with more than 25 years of experience would bail out. There would be a manpower problem."
One 16-year department veteran, who needs nine more years of service before he can retire, testified that his wife under the bill would not get any medical coverage if he's killed in the line of duty.
Attorney Marie "Toni" Sheldon, who is married to a police officer, added: "What this bill does is throw spouses onto the welfare system."
Annetta Kinnicutt, 58, of Kailua, a public schoolteacher for 18-1/2 years, said: "The state promised me these (health) benefits when I was hired and it is most unfair to deny them now."
Robbin Reed, 52, a speech pathologist for public schools in Hawaii Kai, said the bill's passage would spur many educators to leave the statewide school system, which already has a teacher shortage, if they can qualify for retirement.
"You wouldn't stay if you were penalized by losing your state-paid benefits," Reed said.
House panel to gut a pay-cut
By Craig Gima
bill for state employees
Star-BulletinThe House Labor Committee is planning to gut a bill calling for an across-the-board pay cut for all state employees, and replace it with a proposal to allow state workers to voluntarily take one day off a month without pay. Committee Chairman Nobu Yonamine (D, Pearl City) said the voluntary furlough is an option to help balance the state budget.
"It's a bill we want to move forward as one of many options," Yonamine said. What is not an option for the House is the Senate's pay-cut proposal, he added.
"We definitely do not want that bill," Yonamine said.
The committee is scheduled to hold a hearing on the voluntary furloughs tomorrow morning.
Senate Ways and Means Co-Chairwoman Carol Fukunaga (D, Makiki) called the furlough idea "an interesting proposal."
Fukunaga said the Senate is continuing to look at all options to balance the budget, including the state worker pay cut.
Maurice Morita, a lobbyist for the Hawaii State Teachers Association, said the union has no objection to a voluntary furlough, but doubts it would save much money.
"When a teacher volunteers for one day, you gotta hire a sub, so it's hard," he said.
Haesun Morse, who works at the main public library, isn't sure how many of her colleagues would volunteer to take a day off without pay.
"The top people maybe, those who make lots of money maybe, but lower level workers -- single mothers, single fathers -- I don't think so," she said. Co-worker Eiko Kanehiro agreed.
"You can't really count on people being altruistic," she said. "I think people hope that someone else will volunteer."
Morse believes Gov. Ben Cayetano and the Legislature should set an example for the rest of the state work force and take a pay cut or furlough themselves."In their case it shouldn't be voluntary," she said. "They should."
Car buffs push bill to ease
By Pat Omandam
customizing of vehicles
Star-BulletinAs manager of Hypersports Inc., Wendell Yamada has watched sales of performance parts for import cars skyrocket nationally, while local sales continue to sputter -- and it's not just because of the state economy. The real problem, contends Yamada, is a 20-year-old state law that requires a special inspection for vehicles that undergo improvements after leaving a dealer's lot.
Yamada and others say the fear of failing a city reconstruction inspection has many car buffs reluctant to buy performance parts to customize their vehicles. The law does not apply on the neighbor islands.
"If recon were repealed, not only would retail sales go up, but we'd be a lot busier installing the parts we sell," Yamada told lawmakers yesterday
"We'd not only be able to move the workers we have back to full time, but we'd also be able to expand our business and hire more employees."
The House Transportation Committee yesterday heard testimony on Senate Bill 1196, SD 1, which would repeal the law prohibiting a person from operating a reconstructed vehicle on public roads unless it has been inspected and certified by the city.
It also exempts official safety inspection stations from liability for damages and injuries caused by reconstructed vehicles.
The measure has already split the automotive community into two groups: Those who want the freedom to customize their cars without hassle against those who ensure the safety of motor vehicles, such as garages, gas stations and safety inspectors.
Transportation Chairman Kenneth Hiraki (D, Kakaako-Ala Moana) said after the hearing that the law -- which originally was designed to curb circulation of stolen auto parts -- has not been adjusted in more than two decades, and may need updating.
One possible plan is to have both sides reach a compromise before the law is changed or repealed, he said. The committee will vote on the measure Friday.
Both the state Transportation Department and the Honolulu Police Department supported the bill, with police saying there's no evidence of stolen automobile parts being found through the reconstruction permit process.
Eric D. Jensen, owner of Sonic Motorsports in Honolulu, estimates the law costs him $120,000 to $180,000 a year in lost revenue for his automotive accessory shop. He believes the law unfairly discriminates against those whose hobby is to customize their vehicles.
"Automotive accessories are a luxury for most people, and this type of business is difficult enough with Hawaii's current economy," Jensen said. "The state recon law is just an unnecessary obstacle for doing business in Hawaii."
Others, however, say the law safeguards the public from customized vehicles that may be unsafe to drive.
Bernard Chan, president of Quality Tire & Auto Centers Inc. in Waipahu, said government has the right to regulate the automotive industry for public safety because there's a fundamental problem of anarchy on the roadways.
For example, Chan said, installing "monster" tires on 4x4 trucks may look macho, but it seriously comprises the braking effectiveness of these vehicles, especially those which have four-wheel anti-lock brakes. That puts everyone at risk, he said.
"When a vehicle has been altered, neither the owner nor many of the custom shops really do know the final ramifications of such work," Chan said.
Frank Young, vice president of the Hawaii Automotive Repair & Gasoline Dealers Association, agreed that the recon law may be outdated and create an unfair situation for car enthusiasts.
But he said it is a vital safety net for the motoring public, and should not be repealed.
"The concept of the recon law is not the problem -- it is the solution," Young said.
LEGISLATURE UPDATE
A calendar of tomorrow's hearings -- to be held at the state Capitol, 415 S. Beretania St., unless noted. Hearing marked with an asterisk will be televised on Oceanic (Channel 54) and TCI (Channel 3):
HOUSE
Economic Development and Business Concerns: Hearing on resolutions requesting development or strategies and the coordination of initiatives to facilitate the growth of Hawaii's biotechnology industry, and establishment of a World Trade Center Association in Hawaii. Decision-making to follow, 8:30 a.m., Room 423.
SENATE
