|
Budget shortfall The state would once again delay payments to the Employees' Retirement System to help deal with the immediate budget shortfall, under a bill that extends state-mandated ERS contributions to the year 2030 from 2016.
dogs legislators
A bill would again extend
contributions to the state
employees' retirement systemBy Pat Omandam
pomandam@starbulletin.com
House Labor Chairman Scott Saiki (D, Makiki) said this week that House Bill 2460 , House Draft 2, is intended as a place-holder bill while legislators await recommendations from a panel on how the ERS system should be funded in the long term.
Saiki explained the 1964 state Legislature required the retirement system for all state and county employees be fully funded within 50 years beginning in 1964. But since then, state legislatures extended these payments to 2016.
This bill would push payments off until 2030, something critics of the bill say only puts off the problem.
"We have to face the music sometime. I say we face it now," said Democrat Rep. Ed Case (D, Manoa).
Republican state Rep. Mark Moses (Kapolei) also complained on the House floor this week that the state is increasing its future liability. House Minority Floor Leader Charles Djou (R, Kaneohe) added the bill provides short-term savings to deal with the budget shortfall but, in the long term, taxpayers will pay more.
"We're not only borrowing from what I believe is money owed to people who worked for the State of Hawaii, but also compromising an important fund for our whole economy," added state Rep. Chris Halford (R, Wailuku).
Next week is the legislative deadline for the House and Senate to exchange most bills except the budget bill.
In other news at the state Capitol this week:
>> Gas watchdog: The state Senate has received a House bill that would regulate oil companies through the Public Utilities Commission, a move legislators hope will protect Hawaii motorists from excessive gas prices.
House Bill 1770, House Draft 2 , states there is a near monopoly of oil companies doing business in Hawaii and that these companies have made it difficult for the state to ascertain how gas prices are set here.
Kenneth Hiraki (D, Kakaako), House Consumer Protection Committee chairman, said Hawaii has the highest gas prices in the nation, but there is little or no competition in this marketplace.
"The Legislature must be a watchdog against excessive prices," Hiraki said.
Republicans, however, argued regulation of oil companies is not the way to lower gas prices. Djou suggested gas prices could be lower if the state just cut its gasoline tax, which is 58 cents a gallon.
>> Long-term care tax: All Hawaii workers between the ages of 25 and 98 would pay a $10-a-month tax for long-term health care under a bill sent to the Senate this week by the state House.
The money collected would pay people who qualify for long-term care assistance $70 a day for up to a year. "$70 can buy quite a lot," said Marilyn Lee (D, Mililani), House majority floor leader.
"Most importantly, it can keep people out of institutional care for one year, saving their families as much as $7,000," Lee said.
House Health Chairman Dennis Arakaki (D, Kalihi Valley) said the program is not a panacea, but if the state does not act now, Hawaii's children and grandchildren will have to pay for this.
Most House Republicans opposed House Bill 2638, House Draft 2, because it is another tax placed upon residents. Case also voted against it because he questioned the timing of the bill.
>> Ballot blues: Hawaii residents do not vote and it shows. A U.S. Census Bureau report released this week showed Hawaii had the lowest percentage of residents of any state who voted and who registered to vote in the November 2000 elections.
Voter apathy in the islands has increased since 1980. Community and political leaders offer various reasons for the lack of interest, and hope more residents will vote this year, when 127 seats are up for election.
>> Tax refund: Hawaii residents can expect a mandatory tax refund from the state this year, but don't count on it for pay for much more than a cup of coffee.
With the state facing a $330 million budget shortfall, lawmakers say what people will likely get back is a token $1 from the state government. The tax refund is found in House Bill 2365.
The state Constitution requires the tax rebate whenever there is a cash balance in the state's general fund that is at least 5 percent of the general fund for two consecutive years.
Legislature Directory
Testimony by email: testimony@capitol.hawaii.gov
Legislature Bills & Hawaii Revised Statutes
Include in the email the committee name; bill number;
date, time and place of the hearing; and number of copies
(as listed on the hearing notice.) For more information,
see http://www.hawaii.gov/lrb/par
or call 587-0478.