EDITORIAL
2002 session opens on businesslike note

State lawmakers were properly sober and serious yesterday for the opening of what will be a tough post-Sept. 11 session of the Legislature.

Opening-day rhetoric made it fairly obvious where the initial controversies will arise. GOP speakers on both sides of the Capitol put in strong plugs for repeal of the 4 percent tax on food, a proposal that received an immediate and detailed rejection from House Majority Leader Marcus Oshiro.

One high-profile idea that looked close to dead on arrival yesterday was Gov. Ben Cayetano's suggestion that some $200 million in the Hurricane Relief Fund be shifted to the general fund to make up for a looming budget shortfall. There was bipartisan opposition to that idea yesterday.

Absent an infusion of cash from the hurricane fund, however, it will be tough for lawmakers to find a way to balance a budget thrown out of whack by the economic slump that followed last fall's terrorist attacks.

There were few specifics on what budget discipline would look like in reality. One idea that has broad support in both houses and in both caucuses is a close and critical look at the hundreds of special funds that have been created over the years. It is sensible to scale back the use of these "off budget" funds, not only because the money is needed but because such funds suggest a lack of fiscal discipline.

But lawmakers must not kid themselves into believing that they have in any way "solved" the budget crunch by dipping into spare cash in special funds. This is not a recurring source of revenue.

Long term, government expenses and the tax base will have to be brought into synch. Majority Leader Oshiro offered an intriguing idea that may get around the Legislature's eternal inability get its hands around the daunting task of "right-sizing" government.

His proposal, modeled on Congress' military base closure commission, is to appoint a non-legislative commission that would review and prioritize all state programs and functions, listing those that must be kept and those that should be reduced, consolidated or even eliminated. The Legislature's only role would be to accept or reject.

The other side of this coin, obviously, is the need to get the economy moving again. On this front, we heard a number of intriguing and interesting ideas.

These include expanding the University of Hawai'i into the Mo'ili'ili area, a new Pacific Center for Ecosystem Sciences at the former Paradise Park, beefing up our agricultural industry, putting tourism promotion dollars into improving the visitor experience, not simply promoting it and putting substantial political and financial muscle behind hydrogen energy.

One idea floated yesterday by House Speaker Calvin Say demonstrated the right sentiments but offered the wrong solution. Say proposed the creation of a special state Waikiki Authority to take over the redevelopment of the resort area. State backing of expensive renewal plans in Waikiki would be welcome, but there is no need to create another layer of administrative or planning control in the area.