Commentary
Let's help Hawai'i without hurting state's taxpayers

By Linda Lingle
Chairwoman of the Republican Party of Hawai'i

Americans are action-oriented people who like to solve problems. They especially want to "do something" to help when our country or our state faces a crisis.

Our national and local political leaders are true Americans who are increasingly frustrated by their inability to "do something" to help America's and Hawai'i's economies recover from the downturn caused by the Sept. 11 attack.

While President Bush and his cabinet are fighting a war, Congress is experiencing a diminished role in public policy. Its frustration showed during questioning of Federal Reserve Chairman Alan Greenspan.

Senator after senator and member of Congress after member of Congress used different words to pose the same basic question, "What kind of legislation should we include in our economic stimulus package that will make life better for the American people and get our economy growing again?"

The same frustration the Congress is experiencing in Washington can be seen here at home as the governor and Legislature struggle to "do something."

Adding to this is the drumbeat by a Honolulu newspaper to "do something bold."

Some legislators and the governor apparently believe that doing something bold means spending lots of taxpayer money — not just a little increase in spending, but really big, bold new spending that adds really big, bold new debt for taxpayers to pay.

The proposed $1 billion in new state government spending for construction projects is a bad idea.

It does nothing to help the thousands of hotel workers, airline and restaurant employees or retail clerks throughout the state who have lost their jobs. It does nothing to bring visitors back to Hawai'i. And it adds massive amounts of new debt for buildings we can't afford to operate and maintain without bold new tax increases.

The $1 billion in proposed new government construction, coupled with the governor's proposal to bypass the state's competitive bidding process when awarding these tax dollars, is the second-worst idea that has been proposed thus far.

The worst idea is a proposal to grant the governor new emergency powers that would remove the Legislature and the public from the process of democratic government.

It would allow the governor to unilaterally suspend any law, forgive any tax, and waive any lease rent or fee owed to the state. The fact that certain conditions would have to exist before the governor gained these powers is irrelevant. The fact is that the emergency powers law would allow the governor to declare "The law is now whatever I say it is."

President Bush has not been granted anything nearly approximating what the governor has proposed for himself and what some legislators seem willing to support.

So what should legislators do?

First, define the problem: Thousands of people have lost their jobs and hundreds of businesses face bankruptcy. Thousands more will follow if we can't find ways to bring the tourists back.

Once there is agreement that this is the problem, the solutions (in the short term) are pretty simple. And the short-term problem is the reason for the special legislative session. The solutions should include, but not necessarily be limited to:

• Extending unemployment benefits for those laid off since Sept. 11.
• Assuring health benefits for families affected by the layoffs.
• Increasing the tip tax credit for restaurant employees.
• Eliminating the 4 percent tax on food and medical services until June 30.
• Freezing payroll expenses at current levels for elected, appointed and other government employees until June 30.
• Allocating sufficient funding for creative marketing plans, such as massive purchase of airline seats offered free for the next 60 days to visitors with a confirmed seven-day hotel reservation in Hawai'i.
• Funding security enhancements at airports in the state.
• Funding to eradicate the dengue fever threat.

These steps will show that legislators are "doing something." They help those who have lost their jobs. They help attract visitors back to Hawai'i. And they offer breathing room for finding creative ways to lower taxes, improve schools, reduce bureaucracy, and diversify the economy.