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Saturday, January 19, 2002



art
DENNIS ODA / DODA@STARBULLETIN.COM
Wednesday's opening of the Legislature failed to captivate some in the House chamber, but lawmakers are keenly aware that the session could affect their re-election chances.



Schools, stadium and
shortfall rise to top


By Pat Omandam
pomandam@starbulletin.com

Private companies are proposing to build and run two new prisons in Hawaii if the state agrees to rent the facilities.

Legislature 2002 The Hawaii architectural firm Durrant-Media Five has proposed building a $116 million, 10-story, 1,100-bed prison adjacent to the Halawa Correctional Center, to replace the Oahu Community Correctional Center in Kalihi.

The firm would lease the prison to the state for $8.4 million a year. The state would have the option to buy it after 30 years.

Another company has offered to build a 1,000-bed minimum- and medium-security drug treatment facility in Hilo.

Here's a wrap-up of other news this week at the Capitol:

>> Tax or spend: The 2002 state Legislature opened this week facing a $330 million puka in this fiscal year's state budget. Lawmakers know that what they do could affect their re-election bids this fall.

Suggestions on the table include using the Hawaii Hurricane Relief Fund, doubling taxes, across-the-board departmental cuts, removing tax exemptions, using money from certain special and revolving funds, and proposing a $900 million capital construction budget.

>> Gasoline settlement: The state has agreed to settle a three-year price-fixing lawsuit against Hawaii's major oil companies in return for $20 million. The amount is just 1 percent of the $2 billion the state had sought, prompting Gov. Ben Cayetano to say he was disappointed at the amount.

>> Health insurance: The governor wants to stem the rising cost of health insurance through state regulation of rates, but there is opposition from HMSA and Kaiser Permanente, the state's two largest health care plans.

State Insurance Commissioner Wayne Metcalf said state oversight would act as a control against "predatory pricing."

>> Mayoral probe: Federal investigators have joined city Prosecutor Peter Carlisle's investigation into Honolulu Mayor Jeremy Harris' political campaign, based on complaints by the state Campaign Spending Commission. The case could have a major impact on this year's gubernatorial elections.

>> School blues: New state Schools Superintendent Pat Hamamoto faces possible cuts in the schools budget, crowded classrooms, a desired overhaul of the Board of Education, compliance with the Felix consent decree and other education issues in her first session as superintendent. She hopes to gain a sympathetic ear with state lawmakers.

>> Power play: University of Hawaii football coach June Jones wants a top-notch facility for the Warrior football team, and he and UH President Evan Dobelle believe the key is for the university to control and manage Aloha Stadium. The move, which has the support of state Senate President Robert Bunda (D, Wahiawa), could play a key role in contract negotiations with Jones.

>> Traffic cameras: State lawmakers have introduced bills to repeal or amend the state traffic camera demonstration project after a public outcry over the use of cameras to ticket registered owners of speeding cars. Others say the program is working as it was intended, to force motorists to obey the posted speed limits.

>> Place your bets: State lawmakers may punt the issue of gambling to voters in a referendum or ballot question this fall because it is too hot to handle in an election year.



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