Next year's state Legislature may consider increasing the state general excise tax in 2003 to cope with the rising cost of state government, said House and Senate leaders. Democrats warn they
may try to raise excise taxLand Department to enforce trail rules
By Pat Omandam
Star-BulletinHouse Speaker Calvin Say (D, Palolo) said while there was no consensus among House members this year for raising the GET, he personally believes it should be put on the legislative table for discussion next year.
A majority of bills are poised for passage today. The 2001 Legislature is scheduled to adjourn Thursday.
If there are any shortcoming of this session, Say said, it is the lack of any type of revenue enhancement to help pay for things such as public employee union pay raises, state pension costs, health fund premiums, Social Security and Medicare insurance payments, debt service on bonds and increases in payments to comply with the Felix consent decree.
Increases in these areas will cost $279 million next fiscal year and $406 million in fiscal year 2003, according to the proposed state budget up for approval.
"At this point, if I had to make a decision, it would probably be a tax increase in 2003," Say said.
Senate President Robert Bunda (D, Wahiawa) said that a tax increase could be looked at "down the line" as these and other fixed state costs encroach on the state's bottom line.
"And, down the line, I believe ... a tax increase or some kind of other mechanism of revenue enhancement is probably forthcoming," Bunda said.
Say, Bunda and other members of the House and Senate majority leadership yesterday outlined key bills up for approval in this year's session. While acknowledging gains in civil service reform and education, they said a conservative economy will require lawmakers next year to look for ways to raise revenue for state coffers.
Senate Majority Leader Jonathan Chun (D, South Kauai) said there are other ways to generate revenue besides tax increases.
He said he wants the state to ask its congressional delegation and lobby the Bush administration to get the federal government to contribute more for special education.
"We are not getting our fair share of what the federal government has said they should be paying for special ed," Chun said.
Chun said the Senate will once again look at using fees in state special funds to pay for government services.
The Senate this year considered using money from special funds to pay for public union pay raises but could not muster support in the House. State agencies strongly opposed the idea.
As much as $100 million could have been used from these funds for government expenses.
Meanwhile, the House Republicans said the theme for this legislative session continues to be "tax and spend" by the ruling Democratic majority.
House Minority Leader Galen Fox (R, Waikiki) lamented the lack of support for a recurring Republican proposal to eliminate the GET on food.
He said the proposal would have provided meaningful tax relief to Hawaii residents instead of the majority's proposed food tax credit, which eventually perished in conference committee.
"Everyone got a little something this session but the public," Fox said.
State land officials now have the authority to crack down on commercial operators who misuse the state trail system. Land Department to enforce trail rules
Gov. Ben Cayetano has signed into law House Bill 691, which allows the state Department of Land and Natural Resources to establish administrative and criminal penalties for anyone who violates rules relating to trails.
Before the law was passed, the department had no authority to issue fines.
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