Lawmakers
go on overtime;
GOP protests

Legislators continue to
work in private toward
a budget pact

By Mike Yuen
Star-Bulletin

House and Senate conferees, who were supposed to complete their work on the state budget four days ago, have been given an additional day to reach an agreement.

Last night and early this morning, they continued their work in private.

The secrecy shrouding how budget negotiations were proceeding -- other than legislative leaders' optimism that an agreement will be reached by the new deadline of tomorrow -- caused the 12-member House Republican caucus to voice its opposition to the one-day extension. This year's legislative session was supposed to adjourn today.

The Republicans said the extra time that Gov. Ben Cayetano permitted should have been granted only under two conditions:

That the supplemental budget for the current fiscal biennium is not based on a general excise tax increase.

That the Cayetano-backed House plan to lower personal income tax rates with an excise tax increase is taken off the table.

The Democratic-controlled House by a 28-23 margin approved raising the excise tax from 4.0 percent to 4.5 percent. The Senate was unanimous in spurning any excise tax increase and instead offered a less dramatic tax-relief plan.

"The only reason for extending the session is Democrat paralysis," said House Republican leader Quentin Kawananakoa of Nuuanu.

Conferees have agreed to settle the budget first. When negotiations began, The Senate sought deeper cuts than the House, causing Cayetano to brand the Senate's stance as "very, very Draconian."

Meanwhile, the uncertainty surrounding the budget also spurred 27 House members -- 17 Democrats and 10 Republicans -- to tell House Speaker Joe Souki (D, Wailuku) that they do not want legalized gambling to emerge at the last moment as an economic savior.

With 27 of the House's 51 votes, they can kill any gaming measure.

In a memo to Souki, the anti-gambling lawmakers declared: "We have heard persistent rumors that a proposal to legalize gaming will be advanced in the closing days of this session. Please be assured that we do not support any such proposal -- casino, shipboard, referendum, etc. -- as either appropriate procedurally or as a viable option substantively, and will oppose any proposed measure.

"We urge the House leadership to proceed with its budget negotiations in a constructive manner."

Souki said gambling is not on the agenda.

Senate President Norman Mizuguchi (D, Aiea), a proponent of shipboard gambling, added: "Next year is the appropriate time to discuss gaming if the House and Senate wish to discuss it further."

Souki and Mizuguchi yesterday announced Cayetano's decision to extend the session after meeting in the governor's office.

If agreements on the budget and fiscal-related bills are reached tomorrow, then the session will be extended two additional days to Friday. The Hawaii Constitution requires that bills be in their final form for 48 hours before a final vote.

Before Cayetano met with Souki and Mizuguchi, he appeared to mix humor and frustration over the Legislature's failure to reach agreements on the budget and on tax relief initiatives aimed at revitalizing the state's anemic economy.

After signing a proclamation declaring the week of May 16 as Safe Boating Week, Cayetano asked Coast Guard officers to join him for a photograph in which they would use an orange life preserver and a life jacket as props.

When he held up the flotation devices, Cayetano quipped: "Do you have any for the House and the Senate?"