Gov calls meet on
economic crisis

The state Legislature may return
to session to deal with the
tourism-based crisis

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Richard Borreca
rborreca@starbulletin.com

Representatives of local businesses, legislative leaders and the four county mayors have been called by Gov. Ben Cayetano to a special meeting to discuss the tourism-based economic crisis triggered by the Sept. 11 terrorist attacks.

Cayetano announced yesterday afternoon that the meeting will be held tomorrow morning at the state Capitol.

Across the country, reports are coming in of widespread tourism and airline cancellations and reductions as the nation halts unnecessary flying and traveling.

Already in Washington, the Bush administration and members of Congress are starting to assemble an economic stimulus package, including a possible capital gains tax cut and a bailout plan for the airlines.

Legislative leaders in Hawaii are saying the state has to come up with its own plan to address the expected downturn.

"It is an appropriate action because the airline industry has been hit very hard and no state is more dependent on the airlines than Hawaii," said Rep. Galen Fox (R, Waikiki), House GOP leader.

Noting that he expected the "big moves" such as subsidies or bailout loans to airlines to be made on a national level, he thinks Hawaii also may have to help.

"We have to be willing to invest in order to get a return," he said.

"If we don't have our tourism-based economy back on line, we are going to feel it right down the line, and that starts with education," Fox said.

Sen. Robert Bunda (D, Wahiawa), Senate president, added that the state Legislature may have to be called back into session to deal with changes in state tax laws.

"It is something we should consider," Bunda said.

"For us, it is time for us to get our ducks lined up and see how we can contribute to the general welfare," he said.

He said the Legislature may be asked to reduce or change the tax structure to help businesses.

But Bunda worries that while the state is looking to cut taxes, it also is anticipating that tax collections are going to go down because fewer tourists will be coming to Hawaii.

"There is going to be an impact with our existing educational mandates and more funds for OHA (Office of Hawaiian Affairs)," Bunda warned.

"Do we have enough money for everything? That will be the question of the day," Bunda said.

Cayetano is expected to announce the results of tomorrow's meeting on Thursday.