Gov promises Kauai leaders
state won’t tap counties’ funds

Some worried he might cut funds
to aid the state's economy

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By Anthony Sommer
tsommer@starbulletin.com

LIHUE >> Gov. Ben Cayetano swooped in and out of Kauai yesterday to drum up support for his economic recovery package and left the island's government and business leaders happy with a promise that he would not dip into state funds earmarked for the counties.

Three years ago when the state created the Hawaii Tourism Authority, it took away a substantial portion of the Transient Accommodations Tax (hotel room tax) money previously given to the counties.

The HTA was given a $60 million annual budget. Kauai was forced to impose a series of property and vehicle tax increases to offset the lost state funding.

Cayetano's announcement that he plans to pump $10 million more a year into tourism promotion had local leaders nervous that he might again tap the TAT, but he allayed their fears yesterday.

"We need to be careful not to put the counties at a disadvantage," Cayetano said at a brief news conference yesterday following a one-hour closed-door session with government and business leaders.

"I don't want to impair the counties' ability to do their jobs."

In his press conference, the governor emphasized his desire to maintain health insurance for as many Hawaii residents as possible.

He urged companies, specifically the airlines, to look at job-sharing programs in which two employees would work part time rather than one working and the other being laid off.

Although Cayetano is proposing the use of state emergency funding and suspension of state procurement laws requiring bids to fund new public works projects that would provide jobs, he would not specify any particular projects on Kauai or elsewhere.

Kauai's legislative delegation attended the meeting.

Rep. Bertha Kawakami (D, West Kauai), vice chairwoman of the House Finance Committee, predicted the Legislature will act quickly to fund economic relief programs but added the governor may not get all he is asking for.

"There are a number of other, very good competing ideas out there," she said. "I think we'll have to see which we can reach consensus on."

Lynn McCrory, Kauai's representative on the state Board of Land and Natural Resources, said the proposed construction program could be a major shot in the arm for the chronically underfunded agency, particularly on Kauai.

Kauai has more state park land than any other island and most of its facilities are in severe disrepair after years of declining funding.

Public restrooms at many state parks are closed and parking lots riddled with potholes.

Cayetano will meet with 30 local business and community leaders today in Hilo.