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Gaming bill doomed,
Cayetano feels unions' sting
speaker says
Lawmakers thank interns By Pat Omandam
Star-BulletinA bill allowing shipboard gambling in Hawaii in the name of revenue for public education will hit rough water when it goes before the House for a preliminary vote early next week, warned House Speaker Calvin Say.
Although the House Tourism Committee passed the measure yesterday, Say (D, Palolo) said House Judiciary Chairman Eric Hamakawa (D, Hilo) is an opponent of gambling and probably won't schedule the bill for a hearing.
Moreover, Say said, the majority of the 51-member House doesn't favor gambling and is expected to recommit House Bill 2904 to the tourism panel, essentially killing it by not allowing it to get to its next committee.
Members of the Hawaii Coalition Against Legalized Gambling said yesterday they are not surprised the measure made it out of Tourism Chairman Jerry Chang's (D, Hilo) committee, and are confident a majority of the House will still vote it down.
Judy Rantala, coalition vice president, said yesterday there are numerous reports from other states that show for every dollar gaming brings in, it costs a state $3 in social costs to the community. That's not a very good deal, she said.
"I mean, if anybody is intelligent in this community, they know that gambling is not really going to be a big bonus for Hawaii," Rantala said.
As amended, the bill allows up to four separate shipboard gaming companies to operate in Hawaiian waters. Each company would pay the state 12 percent of the income earned from its gaming operations, and each must pay $10 million up front in prepaid taxes.
The shipboard gaming industry in Hawaii is estimated to generate about $83.3 million a year, meaning the state's share would be $9.9 million.
Admission to these casino ships would cost $10 per person. With about 40,000 Hawaii residents visiting Las Vegas each month, that could translate into $400,000 a month in admission fees, Chang said.
All the money generated for the state would go into a state gaming fund, where 96 percent would be earmarked for education, 2 percent for gaming administration and 2 percent for gambling addiction/intervention.
The education money will be used toward public school construction projects, providing vouchers to all 4-year-olds so they can attend preschool or kindergarten for free, and providing scholarships for high school students and teachers who want to obtain or further pursue their college studies.
Chang said there's never been this kind of an opportunity in Hawaii where gaming and education are linked, and he would like the House to discuss it further in the Judiciary committee. Doing so would allow the gaming sector to testify on the measure and respond to concerns from lawmakers.
Chang said there are more than enough shipboard gaming operators to fill Hawaii's need.
Nevertheless, Rantala said using gaming to fund education is flawed because sooner or later, as has happened in other states, lawmakers will be tempted to withdraw state funding of education because gaming revenue is paying the bills.
"If the state is not going to support with its own budget its own education -- y'all want to live in that kind of state? Is that what you want your kids to know?" Rantala said.
Say doesn't fault Chang for wanting to discuss the issue on the House floor because it is his prerogative as a committee chairman to do so. But there are more important issues for the House to take up this session and Say doesn't want to see representatives divided over this issue.
Cayetano feels
By Pat Omandam
unions’ sting
Star-BulletinThe harsh reception public worker unions gave Gov. Ben Cayetano's plan to overhaul the way government operates highlighted a week where the pace quickened at the Capitol.
Cayetano, making a personal plea before House lawmakers to underscore the importance of his civil service reform package, cautioned lawmakers not to be lulled into inaction because of a recovering Hawaii economy.
Inherent flaws in the system make public workers less productive compared to their counterparts on the mainland, the governor said.
But, in sometimes stinging testimony, union leaders responded the bill unfairly gives power to the state and cuts into hard-earned union benefits. Lawmakers deferred action on the proposal.
In other news this week at the state Capitol:
Watershed fees: Households would pay $6.25 more a year to protect forested watersheds that replenish the state's vital water supplies, under a Senate proposal.
The watershed protection bill imposes a 5-cent tax on each 1,000 gallons of water used for domestic purposes. It would generate about $2.5 million a year to protect these forests.
Dead on arrival: A bill reducing health benefits for current and future government workers to save money died quickly this week. Two House panels killed the plan, which would have have eliminated dental, vision and group life insurance benefits for government workers and their dependents.
The state is expected to spend $1 billion a year by 2013 on health coverage for current and retired state workers, four times the current cost of $240 million, according to the state auditor.
Betting on education: The House Tourism Committee passed a shipboard gaming bill in which 96 percent of the revenue paid to the state by gaming operators would fund construction and repairs of schools, kindergarten classes for 4-year-olds and scholarships for high school students and teachers.
But since a majority of the House remains opposed to legalized gambling in Hawaii, this bill won't get far.
Judicial matters: The state Legislature approved a pay raise for judges this week and sent the measure to Cayetano for approval. The corrected salaries as of July 1 will range from $100,761 for District Court judges to $116,779 for the state's chief justice.
The bill also includes retroactive increases to last July 1.
Higa triple-play: State auditor Marion Higa released critical audits of Child Protective Services, the Department of Public Safety and new century schools. State officials complained the reports were too narrow and that issues raised have been corrected, are being investigated or do not exist.
Prison pay: United Public Workers State Director Gary Rodrigues told lawmakers the union is considering legal action if it can determine that Corrections Corporation of America -- which runs prisons in four states that house Hawaii inmates -- is not paying wages comparable to those in Hawaii and could be a basis for a class-action lawsuit. The state attorney general's office is looking into the matter.
Meanwhile, a Senate committee gave Cayetano the authority to solicit bids to build a private prison in Hawaii, but not on the mainland.
Last year, mentally disabled volunteers helped legislators for a week. Lawmakers thank
Star-Bulletin staff
challenged internsCheryl Derby did so well that Rep. Mark Takai asked her to stay on staff as a regular volunteer.
"She's a tremendous asset to our office," said Takai about Derby, who comes in every Wednesday. Her duties include photocopying documents and delivering materials to offices.
Derby, along with 26 other volunteers, was acknowledged yesterday for their help at the state Capitol this week.
The volunteers are from The ARC in Hawaii, a state organization which cares for individuals with mental challenges. The organization has provided the ARC legislative interns the opportunity to advocate for themselves, said Garrett Toguchi, executive director for The ARC.
Each volunteer was given a certificate of appreciation for his or her assistance.
Staff from ARC assisted some interns with daily tasks at the Capitol.
They're treated normally and with respect, said Vera Asentista, ARC support staff. "They feel good about themselves."
Lambert Wai, president of The ARC, thanked legislators for giving the interns the opportunity to "showcase their abilities."
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