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Thursday, October 11, 2001



Hawaii State Seal


State lawmakers
tackle gov’s plan

They plan to act on Cayetano's
proposal but say taxes will
remain unchanged


By Crystal Kua
ckua@starbulletin.com

As state legislative leaders map strategy for an upcoming special session, they say they are considering a portion of Gov. Ben Cayetano's $1 billion construction budget request. They also say they will not increase or cut state taxes and do not see state workers being laid off.

The special session slated for later this month will address the economic crisis triggered by the Sept. 11 attacks.

"I believe that this state of Hawaii will be very resilient in its recovery. And being fiscally responsible, working in conjunction with the governor, I think we'll come up with a very sound balanced budget," House Speaker Calvin Say (D, Palolo) said.

The governor is asking the Legislature to consider financing $1 billion in construction projects and giving him emergency powers. Lawmakers said they will consider the majority of the construction projects but are trying to figure out the best way to pay for them.

"We seem to like the range between half a billion and a billion, so we're going to be looking at the method of financing and to see if we can come to some compromise as far as can we afford it, can we be responsible and will the people benefit," Senate President Robert Bunda (D, Wahiawa) said.

"The issue becomes how do we pay for it without putting everyone in debt," said Senate Vice President Colleen Hanabusa.

Bunda also said the Legislature will not take up a tax increase or cut. "Not going to touch taxes at all," he said.

Lawmakers also appear cool to an administration proposal that would have the state regulate health insurance premiums.

"It's a great idea to consider, but the complexities of it really justifies a regular session, public hearing and debates, and public input," Say said.

Both sides also are in agreement that public employees will get pay raises promised them, and there probably will not be any layoffs, Say said.

State Budget Director Neal Miyahira said a letter went out to state departments cautioning them that the revenue picture is looking unclear at this point.

"Just after the events of the 11th, they were advised that they look carefully at spending with regards to new hires, travel, equipment and contracts," Miyahira said.

But anything else beyond that would have to wait until the Council of Revenues meets next month before deciding if any further action needs to be taken with the budget.

Other possible legislation could focus on environmental concerns including the dengue fever outbreak, miconia eradication and the noise caused by coqui frogs.



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