Proposed fees, Amid predictions of a downturn in the state and national economies, Hawaii's legislators are recommending a series of tax increases to get more money for troubled programs, ranging from schools to weed control.
tax hikes to fund
state programs
Among them is a rise in the state
Still alive
excise tax to help public schoolsBy Richard Borreca and Pat Omandam
rborreca@starbulletin.com pomandam@starbulletin.com
In the House, the city was given the green light to add onto the state excise tax by charging its own supplemental tax.
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The Senate voted to raise the excise tax to increase support for public schools.
Late last night, House members approved by one vote a bill that allows the planned $300 million Pacific Health Center in Waipio to bypass all city regulations.
The Pacific Health Center project, on 210 acres of former pineapple land adjacent to the H-2 freeway, has become the subject of a turf war between legislators backing the development and city officials who insist it would set a bad precedent for the state to take over what is normally the county's jurisdiction.
Five Republican senators -- Fred Hemmings, Sam Slom, Paul Whalen, Gordon Trimble and Bob Hogue -- were joined by Democrats Carol Fukunaga, Les Ihara, David Ige and Melodie Aduja in voting against SB 1626, a 12.5 percent increase in the state excise tax. It passed 16-9.
The bill would bring the tax to 4.5 percent from 4 percent, with the money funneled into the schools. Supporters said the tax would be partially offset by a food tax credit, allowing local residents to get some of the money back, while tourists would pay the increased taxes on all goods and services.
"We must put real money where our collective mouth is and invest in our children," said Sen. Brian Taniguchi (D, Manoa), Ways and Means Committee chairman.
Taniguchi called it a $70 million investment and said he wouldn't try to disguise it as anything else but a tax increase.
The GOP, however, said the tax increase would hurt the state economy.
Republicans said the state has already been increasing the Department of Education budget to $1 billion from $500 million in the last 13 years, but the schools are still troubled.
"The problem isn't more money," said Hemmings (R, Waimanalo-Kailua). "It is the system that needs to change."
The Senate also approved a measure, SB 1088, to charge all employed people $10 a month for a state-sponsored, long-term care plan. People would not be able to collect until they paid into it for 10 years. Slom (R, Diamond Head-Hawaii Kai) called it "the biggest tax increase in the history of Hawaii."
Supporters, however, argued that the baby-boom generation is aging and there are not enough resources to care for the increased needs.
The plan would pay $70 a day in long-term care costs. That prompted Sen. Donna Kim (D, Kalihi Valley-Halawa) to criticize the bill, saying it raised "false hopes and false security."
And parents of public school students would be able to buy books for their children, if the school couldn't provide them, under Senate Bill 1381. The bill allows parents to buy the textbooks at the same price the Department of Education pays.
State representatives approved House Bill 1230, HD1, that would add up to $4.50 to the cost of an airline tickets of most departing passengers.
House lawmakers also approved a measure that would basically allow Honolulu to impose a general excise and use tax surcharge of an unspecified percentage for whatever reason deemed necessary.
In return, the city would give up its share of the state transient accommodations tax or hotel room tax. That money would be redistributed to the other three counties.
Under House Bill 1554, Kauai County would receive an increase in the hotel room tax, to 29.2 percent from 14.5 percent; Hawaii County, 33.3 percent from 18.6 percent; and Maui County, 37.5 percent from 22.8 percent.
Also, House Bill 1616, HD1, creates a long-term care income tax of $120 a year beginning in 2005, with incremental increases, to pay for long-term care benefits.
The House plan, like the Senate plan, would provide $70 per day for 365 days in long-term care benefits.
The Associated Press contributed to this report.
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Measures still
under considerationA few of the more than 600 bills that crossed yesterday between the state House and Senate:
>> Emergency funds: House Bill 1077, HD1 appropriates emergency funds for the governor's and lieutenant governor's offices.
>> Kindergarten age: Senate Bill 17, SD1 changes the minimum age for entering kindergarten from age 5 by Dec. 31 to age 5 before Oct. 16 beginning with the 2005-2006 school year, and age 5 before Aug. 1 beginning with the 2006-2007 school year.
>> Cellular phones: House Bill 49, HD2 bans the use of hand-held cellular phones while driving. Allows use of hands-free devices while driving.
>> Emergency locators: Senate Bill 42, SD1 requires vessels more than one mile off shore to be equipped with a working Emergency Position Indicating Radio Beacon or VHF-FM radio. Exempts canoes, thrill craft, surfboards and paddleboards.
>> Ceded lands: House Bill 295, HD1 creates a ceded-lands task force to study what should be the Office of Hawaiian Affair's fair share of revenue from public trust lands.
>> Vehicle forfeiture: Senate Bill 85 authorizes vehicle forfeiture for street-racing offenses committed within five years of prior conviction.
>> County taxes: House Bill 1554, HD1 allows counties with populations more than 200,000 -- basically Honolulu county -- to establish a blank percent general excise and use tax surcharge. In return, the smaller counties share Honolulu's portion of the state Transient Accommodations Tax.
>> Rockfalls: HB1261_HD2 enables counties to craft ordinances that would address problems related to boulders. Counties had feared enactment of such laws would pre-empt the state.
>> Ethics training: Senate Bill 296, SD1 mandates ethics training for the governor, lieutenant governor, legislators and other elected members.
>> Hawaii sports: House Bill 662, HD2 establishes a Hawaii Sports Hall of Fame.
>> Kahoolawe: Senate Bill 463, SD2 requires the Kahoolawe Island Reserve Commission provide the Legislature with a master plan by Aug. 15, 2003, for the Navy's transfer of administrative authority to the state on Nov. 11, 2003.
>> 311 number: Senate Bill 579, SD1 appropriates funds to the Honolulu police department for development costs for a 3-1-1 nonemergency report system.
>> Election books: Senate Bill 685 bans printing a voter's Social Security number in an election poll book.
>> Public employee crimes: House Bill 287, HD2 requires that a public employee convicted of a felony while at work shall be fired and does not have the right to file a grievance contesting termination if he or she is a member of a collective-bargaining agreement.
>> Library check-off: Senate Bill 832, SD1 provides a check-off box on state individual income tax returns to allow the public to donate a portion of their tax refund to support the Hawaii State Public Library System.
>> Victim benefits: Senate Bill 936, SD1 allows unemployment benefits to victims of domestic violence, sexual assault and stalking.
>> Same-day registration: Senate Bill 1142 allows voters to register to vote on election day at the polling place for the precinct in which the voter resides. Requires proof of residency.
>> Education meetings: House Bill 32, HD2 requires the state Board of Education to conduct a community meeting at each school complex area at least twice a year.
>> Prison site notice: House Bill 857 requires notification and public comment during the site selection process for any new or expanded correctional facility within the state.
>> Fixed rail transit system: HB1075_HD1 requires the Department of Transportation, Oahu Metropolitan Planning Organization and the city to develop an action plan for a fixed rail transit system on Oahu.
>> Executive salaries: Senate Bill 1332, SD2 creates an executive salary commission to review and recommend the salaries of the governor, lieutenant governor, department heads and deputy department heads. The panel's recommendations would take effect next fiscal year unless rejected by three-fourths of each house of the Legislature.
>> Airport passenger fees: House Bill 1230, HD1 allows for airport passenger fees to be charged for flights departing Hawaii that could raise between $18 million and $28 million a year for the state.
Pat Omandam, Star-Bulletin
