Extended aid for jobless favored
By Walter Wright
Advertiser Staff Writer
A 13-week extension of unemployment benefits should be approved in the special legislative session beginning Oct. 22, Democratic legislative leaders indicated yesterday.
Advertiser library photo • July 10, 2001
The development came after more than a dozen majority leaders from the House and the Senate met yesterday to weigh proposals advanced by the governor to deal with the East Coast terrorist attacks' effects on Hawai'i's visitor industry.
For Rep. Sylvia Luke, construction is a priority.
Rep. Sylvia Luke, D-26th (Punchbowl, Nu'uanu), vice speaker of the state House of Representatives, said leaders generally agree with Gov. Ben Cayetano's proposal to extend the benefits beyond the normal 26 weeks.
She said the estimated $70 million cost of such an extension can be met with money already in the unemployment compensation fund, and that increases in assessments on employers to meet the draw-down might be side-stepped for now.
She said that items winning support include:
• More money for increased security at airports ($24 million) and harbors ($4 million). Money would come from the special funds made up of revenues from fees and concessions, even though those revenues will be dropping.
• "Some type of emergency powers" for the governor to kick-start construction projects and respond to any new emergencies that may arise, at least until the regular session of the Legislature convenes in the third week in January.
• Money for a public information campaign to assure people that Hawai'i's airports are safe.
• Bond revenue for some major public works projects to be authorized now rather than wait up to eight or nine months for similar authorization in the regular session.
"While the tourism industry is hurting, we would want to look at ways to put money into construction right away, particularly because the Department of Economic Development, Business and Tourism tells us that tourism and the construction industry have the best 'trickle down' effects" in which dollars spent move quickly into the economy, creating business and jobs in other sectors, Luke said.
Concerns about taking on new debt with declining revenue are still valid, Luke said, but the administration can argue that interest rates are lower than ever and that some savings can be realized by refinancing existing debt.
Areas that Luke said may be able to wait until the regular session include:
• Dengue fever response. "Health Director Dr. Bruce Anderson says he needs about $1.5 million, but he can move existing resources around to handle whatever is needed now." But if more money is needed sooner, the Legislature will respond, Luke said. "The last thing we want is for tourists to stop coming to Hawai'i for fear of dengue fever."
• Special approaches to the Japanese visitor market. "We are waiting to hear from the governor on his successful trip to Japan, and from the tourist industry on what plans it has to deal with that market."
• Tax reductions or holidays, discussed in the House caucus, "may need to wait for the regular session." But with forecasts that growth will be about 0 percent instead of 5 percent, it is clear tax revenues will shrink even if no tax breaks are given.
