State weighs picking up slack on earthquake aid
The governor points to tax credits as a way to fund home repairs
State officials would consider state assistance for Hawaii earthquake victims if federal help is not enough, Gov. Linda Lingle said yesterday.
With damage estimates close to $100 million to public infra-structure, there are still expenses for rebuilding the nearly 1,500 private dwellings damaged by the Oct. 15 Kona quake.
Lingle and legislative leaders pointed to the tax credit legislation passed earlier this year to help victims of the 2004 Manoa Valley flood.
"Tax credits are something we would be willing to look at between now and the opening of the (2007) Legislature.
"First, we need to determine how FEMA (Federal Emergency Management Agency) will reimburse them, so it is a little early but it is certainly something that is on the table for us," Lingle said.
The governor said she would look at whatever gap there is between FEMA help and what the earthquake victims need.
Senate President Robert Bunda agreed with Lingle that there could be state help.
"Tax credits are not out of the question. I think it is a very viable tool we could use to help," he said.
Senate Ways and Means Chairman Brian Taniguchi said the Legislature's decision to give a flood victim tax credit was slightly different because it was only on personal losses.
"I'm not sure how we could calculate the difference between out-of-pocket losses and actually paying to rebuild homes," Taniguchi said.
"But we would be open to looking at this," he said.
Also under consideration is some form of earthquake or hazard insurance for Hawaii residents.
Bunda said the state should figure out a way to encourage homeowners to get earthquake insurance.
Nationally, only about 10 percent of homeowners have earthquake insurance, because it is too expensive. And in earthquake-prone areas such as Hawaii, California and Alaska, earthquake insurance is usually considered prohibitively expensive.
Bunda suggested that the state could use the Hurricane Relief Fund money as the basis for a earthquake reinsurance fund, if local residents wanted to buy earthquake insurance.
Big Island Rep. Bob Herkes, who has previously introduced legislation to support earthquake insurance, said the state should look to the hurricane fund for extra money. He suggested changing the hurricane fund into a broad natural disaster fund.