Island Voices
Hurricane money should be returned

By Michael Colgan
Resident of O'ahu who has an MBA

Arguments about what to do with more than 200 million excess dollars in the Hawai'i Hurricane Relief Fund swirl troubling around like the wind, which created the fund's perceived need. Should the money be kept for another windy day, transferred to the state general fund or, maybe, returned to the home and business owners whose cash created the HHRF?

Keeping the fund intact acts like a stack of cash under a mattress, making its keepers feel secure, but doing no good for a wounded economy and losing value over time — not a good use of money.

Transferring even a single dollar to the general fund violates the trust of those who paid the HHRF premiums and acts as an additional, de-facto, under-the-table tax on property owners — not an honest use of the money.

The correct answer is to return the cash and leave consumers, not bureaucrats, with the power of the purse.

How much are we talking about with the HHRF, anyway? Let's be conservative and approximate: $210 million, divided among 350,000 property owners, equals an average return of $600, about as much per family as the 2001 Republican-driven federal tax rebate. So what can a consumer do with $600 to bring more benefit to the state than the state could provide through official means? Let me count the ways:

Six hundred dollars placed in our bank accounts, but not spent, provides a small return, but also lets bankers create thousands of dollars in loans for Hawai'i's small businesses, including for you and me.

Alternatively, 600 smackers placed in the hands of 350,000 Island residents could buy food and entertainment, adding job security to Hawai'i's struggling tourist engine.

Six hundred dollars could get us into new-car leases, helping Hawai'i's transportation industry; $600 could buy class tuition at affordable colleges or at UH, supporting the education industry; or we could purchase new home or office furniture and equipment, helping our retailers' bottom lines.

And finally, $600 could pay the 2002 homeowner's insurance premiums, which is pretty close to what the HHRF money was originally meant to do. Best of all, no matter how we spend the money, a good portion of it (at least 30 percent) will return to the general fund, through honest means.