StarBulletin.com

Civil unions would have little economic impact, study finds


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POSTED: Tuesday, May 25, 2010

Tourism and other businesses might benefit by about $7 million a year, but legalizing civil unions would otherwise have a minimal economic impact in the state, according to two University of Hawaii researchers.

Passage of a civil union measure is unlikely to cause a substantial increase in health insurance expenditures or in state tax revenues, said the study on “;The Impact of Civil Unions on Hawaii's Economy and Government,”; released yesterday.

“;A reasonable expectation from the experience of other states enacting civil unions is that the state of Hawaii's adjustment to the passage of civil unions legislation will be smooth and cost little,”; was the conclusion of economics professor Sumner La Croix and Kimberly Burnett, assistant specialist with the Hawaii Economic Research Organization.

Burnett said the researchers embarked on research about the impact of the controversial bill because of their own interest.

“;We weren't commissioned by anyone, but we rushed to get it done to make available the most relevant and accurate information,”; she said.

Gov. Linda Lingle is weighing whether to approve the bill, veto it or let it pass without her signature.

Lingle set aside yesterday and today for meetings with advocates on both sides of the civil unions issue, although she has not identified those parties. She said last week she was not close to making a decision on the bill and still wanted to hear all views on the matter.

;[Preview]  Lingle Meets With Both Sides Before Making Big Decision
 

The first of those meetings took place with the OPPONENTS of the bill.

 

Watch ]

 

 

 

 

Burnett and La Croix said there is no evidence that tourism was adversely affected in any states where civil unions or same-sex marriages were made legal.

They used figures from Vermont, also a tourist destination where civil unions are now legal, to project the economic impact of out-of-state couples seeking Hawaii union ceremonies. The additional visitors would likely be couples from states where their union would be recognized and their families and friends.

“;If Hawaii received even 1 percent more visitors ... then 9,500 additional visitor hours would be generated.”; the report said.

Based on visitor spending statistics and wedding services costs, the authors concluded that spending by people who come here to participate in “;civil union ceremonies and celebrations would be approximately $6.9 million.”;

About $300,000 in general excise tax revenues per year and license fees could bring up to $480,000 into state coffers, they said, basing the estimate on the current $60 marriage license fee.

The researchers estimated that the state Department of Health would register 2,292 civil unions of Hawaii same-sex couples in the next six years ending in August 2016.

“;With so many people already covered by health care, 93 percent, that cost would be expected to increase only minimally,”; Burnett said.

“;We are not surprised by the findings,”; she said. “;We didn't expect it to have a huge impact.”;

The governor has until July 6 to veto the legislation and must notify the Legislature by June 22. Lingle earlier had said the language in the bill appeared to be same-sex marriage by another name. Lingle opposes same-sex marriage.