By David Shapiro

Hawai'i's squabbling lawmakers had those big, hurt eyes last year when they were berated for doing little in their special session to fortify the state's ravaged economy after the Sept. 11 terrorism.

The special session, legislators cried, was intended to provide emergency assistance to displaced workers and businesses. Longer-term action to stimulate the economy would come in this year's regular session, they promised.

Well, guess what? The 2002 legislative session is in the home stretch, and there's not a single significant economic development measure even in the pipeline. What's their excuse now?

Gov. Ben Cayetano and legislative leaders from both parties have picked up where they left off in the special session — pointing fingers and calling each other names with no serious attempt to put politics aside for the common good. They've offered no new ideas to right our economy and made no new attempts to resolve old differences. It's a session consumed by partisan budget politics as lawmakers struggle with a projected $300 million deficit in a pivotal election year.

Since everybody agrees that our cost of government needs more control, you'd think the deficit presents a great opportunity to get priorities straight and bring state spending in line with what our tax base can support. That's probably the most helpful way lawmakers could shore up the economy.

But the Democratic majority has ducked tough decisions on which state programs serve vital functions and which do not. They're moving to balance the budget without politically painful cuts by raiding the $213 million Hawaii Hurricane Relief Fund and other special funds.

The latest House budget actually increases annual spending by about $90 million and adds 1,500 new employees to the state payroll.

Republicans rightly object to using the hurricane fund to mask the deficit and further run up the cost of government, effectively sticking the next governor and Legislature with inevitable hard decisions. How will they support this budget when the special funds are depleted? But GOP lawmakers face criticism for cherry-picking issues to embarrass the Democrats while offering no cohesive economic plan of their own.

Republicans say they want to balance the budget by cutting spending, but have been little more willing than Democrats to specify which politically popular programs and state jobs should be cut.

The few cuts they have spelled out would barely dent the current deficit, much less the increased deficit that would result from the GOP plan to eliminate the excise tax on food and drugs. Their numbers don't add up any better than those of the Democrats.

The GOP proposal to return the hurricane fund money to homeowners is dubious policy that borders on pandering. Homeowners got the hurricane insurance they paid for from the state fund and have no legitimate claim to a refund that would amount to a taxpayer subsidy of their insurance.

Better we budget spending according to what projected tax revenues will support and then decide how to best use the hurricane fund.

Democratic support seems to be building for a proposal by gubernatorial candidate D.G. "Andy" Anderson to balance the budget by borrowing from the hurricane fund instead of making an outright raid. That would burden the next Legislature with reimbursing the hurricane fund in addition to balancing the bloated budget that is left behind.

In that event, let's hope voters have the sense to send in a very different group of legislators to pick up the pieces next session. The harsh light of voter scrutiny should shine on both sides of the aisle.

David Shapiro can be reached by e-mail at dave@volcanicash.net.