Gambling not strong bet as 2002 session begins
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By Lynda Arakawa and Kevin Dayton
Advertiser Capitol Bureau
The 2002 legislative session begins this week with most lawmakers opposed to legalizing gambling in Hawai'i. Most of them also oppose spending money from the Hawai'i Hurricane Relief Fund to help balance the state budget.
The Advertiser's annual survey asked Hawai'i's 76 state senators and representatives their views on 20 topics, ranging from gambling to health insurance rates to taxes to fluoridation.
Gambling advocates are making an aggressive push at the Legislature this year, arguing that legalized gambling will create jobs, generate more money for the state and re-energize the tourism business. But even with the economy suffering in the aftermath of the Sept. 11 attacks, survey results indicate gambling initiatives — from casino gambling to a state lottery — will not go far this session.
"It's been that way for as long as I've been in (the Legislature)," said Rep. Ken Hiraki, D-25th (Downtown, Ala Moana), chairman of the House consumer protection and commerce committee, who is against legalizing gambling. "I guess people are unconvinced that it's going to be helpful to our island lifestyle. It affects the way people live in this state. ... It seems to be one of those issues that's not linked solely to the state of the economy."
Nearly every lawmaker also opposes using the Hawai'i Hurricane Relief Fund to help balance the state budget. Gov. Ben Cayetano has said he will have to impose deep budget cuts on public schools, the University of Hawai'i and other state departments unless lawmakers give him permission to spend the hurricane fund's surplus.
The state established the fund after private insurers refused to sell home insurance policies with hurricane coverage after Hurricane 'Iniki devastated Kaua'i and heavily damaged parts of O'ahu in 1992. Hawai'i homeowners were required to pay into the fund, which is now inactive but holds a surplus of $213 million.
Despite the apparent majorities in both the House and Senate against spending the money, Democratic House Majority Whip Scott Saiki said lawmakers may be forced to reconsider when they learn more about the state's budget dilemma.
Saiki said he wants to leave the fund intact as a cash reserve in the event of some future disaster, and the hurricane fund will be "one of the last alternatives we look at" for balancing the budget.
"Sentiment may be to keep it intact, but at the end if there is no alternative and it comes down to raising taxes or spending a portion of the relief fund, what option do members choose?" asked Saiki, D-20th (Kapahulu, Mo'ili'ili). "I don't think members want to raise taxes this year."
Senate Judiciary Chairman Brian Kanno said there are other budget alternatives.
"I don't think it's a must-do situation. I don't think we have to raid the hurricane fund to balance the budget," he said.
People want lawmakers to use the money to guard against the possibility of insurers bailing out after another hurricane, said Kanno, D-20th ('Ewa Beach, Makakilo, Kapolei). That might mean establishing a new state-sponsored insurance program, or encouraging homeowners to retrofit their homes with hurricane clips, he said.
Rep. Joe Gomes, R-51st (Lanikai, Waimanalo) said he is not surprised most lawmakers oppose the plan to spend the hurricane money.
"I think anybody that votes to use the hurricane fund to fund government will not be re-elected, because the public has overwhelmingly said that that would be an inappropriate use of that fund," Gomes said.
Lawmakers' answers to The Advertiser survey are not always a sure-fire way to determine where they are headed during the session. For example, a majority in both the House and Senate indicated last year they wanted to eliminate the excise tax on food and medical services, but proposals to do so were voted down on the House floor.
Eliminating that tax is politically popular because it would save taxpayers about $150 million a year, but it also would aggravate the state's budget problems.
"I think that the fiscal realities set in during the legislative session because members begin to hear from, for example, homeless programs and the groups that are providing food for poor people," Saiki said. "There are so many needs that need to be tended to, and you can't do that if you cut taxes."
Lawmakers also want to avoid increasing taxes and fees, suggesting that Cayetano's proposal to double the liquor tax to help balance the budget won't get much support. The increased tax collections would generate $40 million in new revenue, but legislators typically resist dealing with — much less passing — controversial legislation in an election year.
Most lawmakers who responded to the survey also said they oppose laying off state employees to balance the budget, but that they think the size of state government should be reduced.
Reach Lynda Arakawa at larakawa@honoluluadvertiser.com and Kevin Dayton at kdayton@honoluluadvertiser.com or 525-8070.
