Advertisement - Click to support our sponsors.
Capitol View
HOW should we spend the money? What should we do
with the budget surplus?What a great question and what a wonderful way to frame a debate.
There is no denying that what we have on a national level are good times. There's fat enough for everyone. So if the market holds, inflation stays in check and economic growth continues in real numbers, the nation booms and we have a surplus.
Jobs, according to the latest report, are there for nearly all who want to work.
Average hourly earnings moderated a bit in August, rising 0.3 percent to $13.80 an hour, down from a 0.4 percent gain in July, according to an Associated Press report.
More people working means more people spending, which means more people paying taxes, which means more money for the government. The result is the wonderful problem of how do we spend it.
Democrats and Republicans say they want to pay down the national debt, increase help to the sick, poor and aged, while still protecting Social Security and reducing taxes.
The degree each wants to do any one thing depends on the candidate speaking. Vice President Al Gore is more likely than Texas Gov. George W. Bush to call for paying off the debate, while Bush talks more about reducing taxes than Gore.
And both are quick to touch on the new needs for improved public education.
All this is important to Hawaii, because it shows just how far away from the national debate Hawaii has moved.
The latest report by Bloomberg News has the U.S. West, led by Arizona and Oregon, having the highest rate of economic growth from 1992 to 1998, the latest period available for study.
"Hawaii and Alaska put in the weakest performance, posting declines of 0.5 percent and 0.4 percent, according to the government's statistics," Bloomberg reported.
To show how far away Hawaii is from the economic curve, compare efforts to increase business with one under way in Boston.
Lycos, the Internet company, is awarding more than $500,000 in prizes to winners of a business plan contest.
The $520,000 in prizes makes the contest one of the biggest in the nation. According to reports, officials at Waltham, Mass.-based Lycos are running the contest to fuel New England's economy, which has recently lost defense and minicomputer businesses.
There are some strong indications that Hawaii's economy has stopping falling and is perhaps increasing in small amounts.
THE most encouraging word comes from the state, which can see a huge budget surplus within five years, if the state doesn't increase spending.
Of course, that is not going to happen and that is the difference between political debates across the mainland and in Hawaii.
Over there, politicians are talking about how to spend more and more money. Over here, politicians aren't talking at all about spending money.
The state's surplus depends on no public employee pay raises, on the federal courts agreeing with state efforts to teach special education children and treat mentally ill patients.
But, state officials say, if we give big pay raises, or the courts order the state to spend more and more money to adequately care for its citizens, then we won't have a surplus. In fact if we get too generous with the pay raise, Hawaii could have a $300 million deficit by 2005.
That's the framework for the debate that Hawaii's politicians should be, but are not, having this election year.
Richard Borreca reports on Hawaii's politics every Wednesday.
He can be reached by e-mail at rborreca@starbulletin.com