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Thursday, February 1, 2001



Hawaii State Seal


State auditor may get
$500,000 to monitor
Felix for legislators

Gambling not worth
risks, opponents say


By Pat Omandam
Star-Bulletin

The state auditor's office is expected to receive an additional $500,000 from the state Legislature this year.

That's because the office has to continue monitoring issues raised in a recent audit over the state's compliance with the Felix consent decree.

Legislature The money, which was added into the Legislature's $12.7 million annual budget bill, signals a willingness by lawmakers to let the legislative branch grapple with Felix instead of leaving the federal court order in the hands of the executive branch, where a joint committee was put in charge of it.

Senate Ways and Means Chairman Brian Taniguchi (D, Manoa) said funding to the joint panel didn't work out the way lawmakers expected last year, and many felt it was better to leave the issue within the auditor's office.

The court order requires the state to improve educational and mental-health services to special-needs students.

In a follow-up audit last week, auditor Marian Higa reconfirmed some of the problems found in a 1999 report on Felix. She also found that keeping tabs on the cost and whether services are working remains a challenge for the state.

"I think there was a concern voiced among a lot of the members in both Houses about Felix," Taniguchi said.

"Maybe it was timing, but when the auditor's report came out I guess there was a sense that maybe the auditor can help us sort some of these things out and continue to work on it," said Taniguchi. He said the House might increase funding for Felix in the proposal.

The Legislature's budget bill is among the first measures approved each session because it deals with funding for the session, and includes salaries for legislative staff.

Yesterday, the House Finance Committee, in an unusual move, amended the Senate's version of the bill and added another $300,000 to the $200,000 senators already included for Felix.

Higa told the House panel yesterday the $200,000 was not enough to provide sustained monitoring of the various legal and program issues raised by the Felix audit and asked for the additional $300,000.

She said she foresees legal issues that must be resolved and believes it is important the Legislature has people on its side who can objectively understand these complex issues.

"With all the other things they wanted us to look at, we can't do it for $200,000, and considering the amount of money now that's involved in Felix, they're willing to consider something more than that," Higa said.

The House will vote on Senate Bill 890 SB1, HD1 tomorrow. House Speaker Calvin Say (D, Palolo) expected the Senate to go along with the House changes to its budget, which would clear the way for its passage.

The fiscal year 2001-2002 proposed budget includes $5.2 million for the Senate and $7.5 million for the House. The auditor's office will receive $2.3 million, while the Legislative Reference Bureau will get $2.3 million.

Lawmakers also added another $100,000 to the auditor's office for a study on long-term care on Hawaii's aging population, an issue Say has suggested could be funded through casino gambling.


Hawaii State Seal


Gambling not worth
risks, opponents say


By Richard Borreca
Star-Bulletin

Legalizing gambling would increase crime and corruption, provide a bad example for the young and risk ruining the aloha spirit, state lawmakers were told yesterday.

Legislature Gambling opponents, ranging from the dean of the University of Hawaii College of Business to a national expert on the social dangers of gambling, spoke to about two dozen members of the Legislature.

They were brought together by the Hawaii Coalition Against Legalized Gambling and the Keiki Caucus, a bipartisan legislative group that focuses on children and family issues.

Tim Kelly, former executive director of the federally sponsored gambling impact study commission, repeated the commission's call that no new jurisdictions legalize gaming.

"Gambling destroys too many lives," he said.

Warning that legalizing a casino or lottery in Hawaii would pull revenue from local restaurants and businesses, Kelly said there are more costs than benefits to gambling.

The Legislature is considering a series of bills to legalize gambling and earmark the money for either long-term care or insurance or to provide college scholarships to local high-school graduates.

Rep. Dennis Arakaki, co-chairman of the Keiki Caucus, said after hearing the presentation he was opposed to gambling. "I don't think any type of long-term care or education proposal should be used to do this," he said.

"We are in dire need of more resources and to improve our schools, but the trade-off is short-sighted. We are generating immediate revenues, but in the long term the social costs would be much greater," said Arakaki (D, Kamehameha Heights-Kalihi Valley). "If you think of the future, this is not a panacea."

Also testifying against legalizing gambling were David McClain, dean of the UH College of Business; Steven Alm, U.S. attorney; the Rev. Frank Chong, Waikiki Health Center; and Karen Knudsen, member of the state Board of Education.



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