Posted on: Wednesday, October 17, 2001

The September 11th attack
Security costs mount as tax revenues trickle off

By Johnny Brannon
Advertiser Staff Writer

Government spending on security has skyrocketed in Hawai'i since the Sept. 11 terrorist attacks, with agencies spending tens of millions of dollars more to guard the airport, respond to biological and chemical threats, protect the local water supply and provide other security measures.

Topping the spending list is the state Department of Transportation, which expects to spend $27.3 million on security for Hawai'i's airports this fiscal year, up from $15.9 million last year, department spokeswoman Shelley Paik said.

And a draft bill submitted by Gov. Ben Cayetano seeks more than $17 million to beef up security around the state's harbors, as well as $5 million for new highway security measures.

Increased security around courts, office buildings and the Capitol itself will also carry a price, though the Department of Public Safety could not immediately say how high.

The state may request federal money if it becomes available, but it is too early to tell whether budget cuts in other areas will be necessary to balance the state's security needs, Cayetano said through a spokeswoman.

Regardless of how much is spent on security, a steep decline in tax revenues is expected to leave less money in state coffers, experts say.

"This is going to be a very palpable," said Leroy Laney, a professor of economics and finance at Hawaii Pacific University. "We've never seen this kind of an abrupt impact on tax revenues."

Every major source of state tax revenue will take a hit, he predicted. Excise tax collections are expected to slump as retail sales taper off, he said, personal income tax revenue will drop as unemployment increases, and hotel room taxes will plunge because of fewer visitor arrivals.

The City and County of Honolulu is also spending much more on security and could feel a serious budget pinch soon.

The Honolulu Police Department is paying much closer attention to public facilities and vital infrastructure, and officers have been kept extra busy responding to reports of suspicious people and mail.

The department declined to provide any details about how much it is spending on overtime, how many officers are involved, or what they are focusing on.

"Money is not the issue," HPD spokeswoman Jean Motoyama said. "This is a public safety issue and we're concerned about the welfare of the community."

But eventually the bills will be due. And besides paying for work hours, officials are seeking additional equipment to increase preparedness.

The Honolulu Fire Department is asking the city to buy more than $200,000 worth of additional gear for responding to biological and chemical terrorist threats, Capt. Richard Soo said.

City Councilman John Henry Felix, who chairs the council's public safety committee, said he is eager to see a complete security spending breakdown but remains confident that costs can be balanced in the midst of what are expected to be declining tax revenues

"Decreased revenues and increased costs mean new challenges, but I think the mayor and the council are up to the challenge," he said.

City officials said that it's costing $5,800 more each week for increased security at City Hall, at the Honolulu Municipal Building and the municipal parking lot.

City spokeswoman Carol Costa said police had recommended that extra security and added that it would remain in place for the time being.

The city has closed two of four entrances to Honolulu Hale and posted guards from a private contractor, Centurion, to do sign-in and identification checks those entering the buildings.

"That is being maintained at this time for the safety of the employees and those who come to city buildings to do business," Costa said.

City Environmental Services Deputy Director Frank Doyle said that the city is spending about $8,000 more each week to hire private security guards at the major wastewater treatment plants.

Costa said the city has yet to determine an overall total cost of increased security since the attacks, and that some costs are difficult to pinpoint.

For example, Costa said fire trucks are never left unattended now even if they are at a fire. "They have a new policy where someone stays with the truck." And ambulances are locked when they are responding to various incidents, a precaution not always taken before, she said.

Advertiser staff writers Kevin Dayton, Lynda Arakawa and Robbie Dingeman contributed to this report.