Legislators clash While the state House prepares to vote tomorrow on a new state budget, lawmakers in both the House and Senate are still working on a series of bills to raise fees and taxes to pay for the new budget.
over budget
Both Democrats and Republicans
criticize proposals intended
to address the crisisBy Richard Borreca
rborreca@starbulletin.comThe state's main budget bill includes cuts of 5 percent over two years, but it was criticized for pumping in extra money for new projects.
During preliminary debate on the budget, House members heard both Democratic and Republican critics.
"It's my own belief that the Hawaii economy simply cannot support our current state government. What we need to be doing is dramatically reducing the spending here in our state government, not, in my opinion, expanding it," Rep. Charles Djou (R, Kaneohe) said.
"This budget does include a spending increase of nearly $100 million and expansion of nearly 1,500 new government employees," Djou charged.
Manoa Democrat Rep. Ed Case added that he also opposed the budget.
"Essentially, I cannot support a measure that, in my mind, so clearly avoids our responsibilities as leaders, not just to the present, but to our collective future. This is not about long-range fiscal integrity for the state," Case said.
Others who voted "no" on second reading included Republicans Jim Rath (Kona). Mindy Jaffe (Kaimuki), William Stonebraker (Hawaii Kai) and Galen Fox (Waikiki).
At the same time, the House and Senate are considering bills to raise taxes.
For instance, the proposal to fund a long-term care insurance program would cost a minimum of $10 per person per month.
Supporters say Hawaii would be the first state to provide support for aging seniors who cannot bathe, feed or dress themselves. Opponents, however, say the measure would provide minimal support and that there is no guarantee premiums would remain at $10 a month.
Another series of tax increases would raise the price of liquor and tobacco.
Gov. Ben Cayetano backed the tax increases as a way to help balance the budget, but again, opponents said they are not needed. The liquor increase would raise $20 million; the total amount of the tobacco increase was not available.
"The tobacco tax is regressive and increasing it is cruel," Lowell Kalapa, executive director of the Hawaii Tax Foundation, said.
"If you are a garbage collector addicted to smoking, you are going to buy less milk for your kids or cut out something else so you can continue to smoke," Kalapa said.
Another proposal would increase the tax or fees on marriage licenses to $60 from $50, a 20 percent increase. Burials would be taxed, a first for Hawaii, with the state requiring $20 for a permit for "burial transit."
The money would go for new computer systems for the state to track the marriage and death certificates.
Persons flying in and out of Hawaii would see a $4.50 security fee tacked on to their plane tickets to help pay for additional airport security measures.
Driver's education programs are looking for more financial help, and the House and Senate are considering bills that would allow auto insurance firms to raise the driver's education fund fee to $3 from $2 per insured vehicle.
Also, state-regulated financial institutions would be required to pay new fees, ranging from $3,200 to $2.2 million, depending on the value of the firm's assets.
Kalapa said state is mistaken in calling for tax increases while the state is still in a recession.
"The reasons we are up the creek now is, the Legislature gave the general fund away, and that is why they have to raise taxes now," Kalapa said.
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