Updated at 6:22 p.m., Tuesday, April 30, 2002
Lawmakers approve budget, delay gas cap
Advertiser Staff
State legislators today pushed back until 2004 the starting date of a proposed law to put a cap on gasoline prices.Final votes on the bill were postponed until Thursday, the final day of the legislative session.
Amid an intense campaign by service station owners to scuttle the measure, identical amendments passed the House and Senate to delay the start date from July 1, 2003, by one year.
Lawmakers were scheduled to take final votes on dozens of bills today. The 60-day legislative session is schedule to end Thursday.
The gas-cap bill would allow the state to set a maximum price on gasoline based on an average of prices in West Coast markets.
Pushing back the start date, opponents of today’s amendment argued, would prolong the uncertainty that those businesses face.
Gas station owners bought radio spots urging listeners to call their legislators to defeat the gas tax cap so local service stations wouldn’t be forced out of business.
Supporters say evidence shows there is no economic reason why Hawai'i’s gas prices have traditionally been among the highest in the country. Oil companies say high taxes and other market factors contribute to the state’s high gasoline prices.
Lawmakers also voted to give final approval to the state budget and other bills that make up a $3.8 billion spending plan for the 2002-2003 fiscal year.
The $3.8 billion spending plan is about $200,000 more than this year's.
To make up for declining tax revenues, lawmakers increased the cigarette tax from $1 to $1.40 per pack and transferred $140 million from various state special funds, $29 million from the hurricane relief fund and $10 million from a budget reserve fund.
Governor may veto budget
Cayetano told reporters today it is possible he will veto the budget, but said actually doing so would be a tough decision. Cayetano said he is concerned lawmakers did not allocate enough money for social service programs.
A veto would mean the $3.9 billion spending plan that lawmakers approved last year would remain in effect for next year. However, a veto would torpedo about $450 million in construction projects that lawmakers approved today, which would hurt the state construction industry.
Cayetano said he has asked his department heads to determine whether they believe they would fare better under the budget approved last year, or under the changes adopted by lawmakers this year.
