Gambling About two weeks after the legislative session began in mid-January, the state House Judiciary Committee defeated two casino-related bills because of overwhelming opposition.
stays alive with
budget at stake
The issue looms in the
Senator tries to save red-light cams
background as lawmakers
try to balance the budgetBy Pat Omandam
pomandam@starbulletin.com
Today, with a little more than two weeks left until the session ends, gambling remains a talked-about option as official talks begin to balance the state budget.
"I've got a couple of calls last week," said Jim Boersema, the local agent who represents developer Sun International Resorts, which wants to build a mega-resort and casino in Ko Olina.
"They're (legislators) having a hard time balancing the budget and they're rightly so, looking at alternatives," he said. "They should look at all alternatives, not just gambling, but all alternatives that could raise income or reduce deficit."
While there are no official talks under way with state officials, Boersema said the developer's offer to build a resort/casino in return for a $100 million state gambling license remains viable.
"That's on the table, and if somebody wants to come back and say, 'Well, how about this?' then that's something that Sun can look at,'" he said.
Another casino developer, led by Detroit businesswoman and casino operator Marian Ilitch, also has proposed casinos on Oahu, one at Ko Olina and the other in Waikiki, in exchange for a $100 million state gambling license.
House and Senate members met last night in the first of many conference committee meetings to come up with a proposed conference draft of the state budget that can gain legislative muster and the approval of Gov. Ben Cayetano.
The state is facing a revenue shortfall of more than $300 million in this second year of the two-year budget. Last week, the state Tax Department reported tax collections for the first nine months of the fiscal year are down 2.1 percent instead of an estimated 0.7 percent.
The drop in collections means an additional loss of about $45 million in expected revenues.
Last month, the House sent to the Senate a proposal that balances the budget by using revenue from $100 million from the Hawaii Hurricane Relief Fund, $100 million from excess money in state special funds, $40 million from the doubling of the liquor tax and across-the-board 2 percent cuts in all state departments and agencies.
"I think the House position is very solid ... and we'll take it from there," House Speaker Calvin Say (D, Palolo) said yesterday.
"It's up to the Senate to look at the options and the different factors and variables tied to the financial plan."
But the Senate has already killed the liquor tax proposal, and 16 of 25 senators have pledged not to take any money from the $213 million hurricane fund.
Instead, Senate President Robert Bunda (D, Wahiawa) had proposed tapping about $90 million in unused funds set aside for state contracts but now believes the amount available is about $45 million.
Senate Ways and Means Chairman Brian Taniguchi (D, Manoa) acknowledged the Senate faces an unbalanced budget. He said yesterday there have been offers of large sums of money for licenses but nothing has materialized so far.
Taniguchi said he doesn't support gambling but acknowledged he doesn't have the final word.
"I guess I could get outvoted, but I would think that would not be something that we would take up at this point," he said.
Colleen Hanabusa (D, Waianae), committee vice chairwoman and Senate vice president, said gambling lobbyists continue their efforts in the Legislature.
"I still hear mumblings about it," she said.
But Hanabusa said she doesn't think gambling is a viable option and believes the Legislature will not entertain it this late in the session.
Meanwhile, Say emphasized gambling has been killed this session and that should be the end of it.
"At this point, let me be very candid with the public," Say said. "My answer to you on gaming is 'No.' ... To resurrect the issue at a last-minute point in time would be uncalled for and unfounded."
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