Gov’s e-mail urges
hurricane fund use

Cayetano lobbies state senators
to use it to balance the budget

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By Richard Borreca
rborreca@starbulletin.com

Trying to restore funding for social service agencies and the public schools, Gov. Ben Cayetano has stepped up his lobbying to get the Legislature to tap the state's $213 million Hawaii Hurricane Relief Fund.

"I hope you prove me wrong, but the budget which is emerging is going to be very difficult for me to support," Cayetano warned in an e-mail yesterday morning to Senate President Robert Bunda and 17 Senate Democrats.

Bunda saw the e-mail as a threat by Cayetano to veto the state budget.

"I wouldn't put it past Gov. Cayetano," Bunda said. "I would like to think he is rational, but sometimes I have my doubts."

The governor's press secretary, Kim Murakawa, said, "Sen. Bunda's comments are quite unfortunate given the number of times he has had this issue explained to him."

Senate Ways and Means Chairman Brian Taniguchi (D, Manoa) has acknowledged that hurricane funds need to be used, Murakawa said. "It seems everyone else but Sen. Bunda understands that we need to use the funds to continue to provide basic services to the people, but then he did paint himself in a corner on opening day by promising not to use the funds without having a clear picture of the state's financial situation."

In his e-mail, Cayetano said they all were elected to make decisions "to protect and serve the poor, disadvantaged and needy."

Cayetano said because the Senate is reluctant to use the hurricane fund, the budget "is balanced on the backs of those we were sworn to protect and serve."

Bunda said Cayetano, who served in the House and Senate before becoming lieutenant governor and then governor, should appreciate the public does not want the hurricane fund used to balance the budget.

"We are a body of lawmakers that are close to their constituents, and we understand what our constituents are saying," Bunda (D, Wahiawa-North Shore) said.

"They are saying no matter what the argument is, it doesn't matter; the hurricane fund is something we need for something other than balancing the budget."

Cayetano has eyed the hurricane fund, which is now inactive, for the past two years. He first suggested that the money be invested and used to support college scholarships for Hawaii students.

After the Hawaii economy went into recession this year, he asked that the $213 million fund be used to help social service agencies and make up for a portion of the $300 million state budget deficit.

The House, in response, voted to use up to $100 million of the fund and earmarked it to fund specific social service and education programs. But the Senate refused to follow, and 13 Democrats and the three Republicans signed a pledge to oppose "the use of any moneys from the Hurricane Relief Fund."

But just this weekend, Bunda's office reported the House and Senate had reached a tentative agreement on a bill that would tap the interest earned by the fund in the last two fiscal years.

That would take $29 million from the fund.

Also yesterday, the Hawaii Association of Realtors held a news conference urging the Legislature to keep its hands off the hurricane fund.

"For the fund to now be viewed as the panacea for the state's budget problems is unfair to all residents and property owners of Hawaii," the Realtors association said.

"We must bring our spending in line with our income. ... The credit-card mentality that is being used by our government only serves to handicap our future and the future of our children."

But social services groups are also fighting to use the funds, with supporters calling lawmakers and detailing how programs would be forced to close if the money is not used.

Legislators must come to an agreement on the budget by Friday if the Legislature is to adjourn on schedule May 2.

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