StarBulletin.com

Focus on state budget


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POSTED: Sunday, March 07, 2010

With the state budget crisis bearing down, state legislators have put unrelated controversial bills to the side in the current session, which just passed the deadline for bills to move from one chamber to the other. Lawmakers have yet to agree on ways to raise revenue to pay for vital functions of state government and must redouble efforts to achieve a do-something session.

First to be put aside—clumsily—was a proposal to legalize civil unions of same-sex couples. House Speaker Calvin Say blocked a floor vote on a bill that had been approved in different versions last year by both the House and Senate. Lawmakers should try again next year to give gay and lesbian couples the same rights, state benefits and protections given to married couples.

A more prudent decision was the House Finance Committee's shelving of a bill that would have legalized gambling. The proposal to provide a five-year license to a casino gambling operation in Waikiki would have increased crime rates without creating revenue for the state to address the state's financial problems.

One controversial but worthy measure approved would create a system for distributing medical marijuana to patients and caregivers. Gov. Linda Lingle has opposed such proposals, even though the Obama administration has rejected the George W. Bush administration's policy of undermining state programs allowing medical use of marijuana. The measure, which would place a $30 excise tax on each ounce provided to patients, was approved by a 20-4 Senate vote and merits House acceptance.

That tax will have little effect on the Legislature's attempt to comply with a state constitutional requirement of a balanced budget. At least one chamber has passed more than a dozen measures to raise fees on companies, tourists, drivers and residents with the goal of plugging the $1.2 billion budget gap.

House members have wisely backed away from a proposal to rob counties of the entire revenue from the hotel tax, although the Legislature may limit the counties' share to $94 million. Another good move: A measure to shield businesses from the full brunt of skyrocketing jobless insurance taxes has been fast-tracked and now awaits the governor's approval.

But the conundrum of Furlough Fridays remains—and a creative, cooperative solution to restore school days has been elusive.

Also on the table at the Legislature's halfway point are measures to add a $20 tax for licenses or permits, generating an estimated $20 million, and requiring businesses to pay $20 when applying for a permits or licenses, such as business licenses, corporate filings or registration of trade names, with the Department of Commerce and Consumer Affairs.

Lingle has threatened to veto any tax hike as being detrimental to the economy during a recession. Legislators soon will learn whether she regards increases of an assortment of fees eligible to fall under the same category.