THE 2002 HAWAI'I STATE LEGISLATURE
Finding money tops agenda

By Robert Bunda
Senate President

Robert Bunda

At the end of our last session, we congratulated ourselves on what we accomplished. We found the resources to meet the many needs of our community. The economy was rebounding, tax collections were up, and we seemed to be finally turning the corner on our long-standing budget woes. Our work done, we adjourned, relieved and satisfied with what we had achieved. But an already faltering national economy, the September 11th terrorist attacks, a local economic crisis and three special sessions later, it's clear that our relief was not meant to last. In fact, our work had only just begun.

This year, we'll be reopening our budget, not to add supplemental items but to find ways to fund or cut $150 million or more. How we find the money will be at the very top of our legislative agenda. As we deliberate on the issues before us, let us keep in mind the responsibilities and powers we hold as members of the Senate.

I am speaking of control. For too many years, particularly during flush times, we have approved spending without asking the tough questions surrounding those expenses. We need to regain our control over the direction of government and public expenditures, because if we don't, who will?

Let me give you a prime example of program spending that is out of control. The Joint House and Senate Investigative Committee on Felix revealed the flaws in our blanket approval of funding for the consent decree, now almost $1.5 billion since 1994. The fact is, no one really knows the true cost of Felix. Furthermore, neither the Department of Education nor the Department of Health can accurately account for the use of this public money. Accurate by our standards, not the Department's, --not the court-appointed monitor,--not even Judge Ezra's evaluation, but ours, the elected body given the responsibility of oversight. For this reason, we will be extending the life of the Investigative Committee and continue to search for an accurate accounting of Felix expenses.

We should give serious consideration to a proposal to transfer control and management of the Aloha Stadium to the University of Hawai'i. Yes, there are questions in such a move, but Head Football Coach June Jones and Athletic Director Hugh Yoshida may be able to take the athletic program and the stadium to new levels, if given a chance. I say we give them the opportunity.

Another proposal we will examine is funding for the Hawai'i Tourism Authority. the fact remains that we need to look at where we are, and where we're going with tourism, given the economic problems of national and foreign markets like Japan. Hawai'i already had a positive image worldwide. We need to take full advantage of this and look beyond just marketing. We need to take stock and upgrade the product we are selling. Why spend millions of dollars on advertising if public restrooms, interpretive signs, historical information and cultural explanations are inadequate for our visitors?

We will be redefining the Hawai'i Tourism Authority's funding this session and I suggest we also underwrite part of the maintenance of our state parks and trails, particularly those impacted by high tourist traffic.

Another smart move to save time and money is in the area of the repair and maintenance of our schools. We will recommend that the separate repair and maintenance operations of the Department of Accounting and General Services and Department of Education be consolidated under one roof to streamline the entire spectrum of decision-making.

The most talked-about solution to our budget shortfall is the $213 million in the Hawai'i Hurricane Relief fund.

It has been nearly ten years since Hurricane Iniki left us with $1.6 billion dollars in property damage. Using the Hurricane Relief Fund now would, in my opinion, be politically and fiscally unsound.

The bulk of the fund should remain in reserve. But it makes good sense to set aside a portion of the money for homeowners to install hurricane mitigation measures that help to protect homes against more serious damage. Additionally, I am introducing legislation to address the possibility of creating a homeowners mutual insurance company. This new insurance entity could help stabilize the local market in the long run as we could depend on it to remain in the State in the event of a hurricane.

Gambling will not solve our budget problems...not now..not even in the immediate future and I do not intend to advocate support of gaming under duress of a fiscal crisis. Rather, the full social and economic impact of gambling needs to be openly and rationally discussed. Yet, this extremely controversial issue has defied attempts by the Legislature to reach any consensus. Perhaps it is time to let the voters decide. Perhaps some form of referendum on gambling would lay this matter to rest. Individual opinions aside, we must agree that we will not let this controversy linger and dominate our agenda.

A far more practical answer to our budget crisis is squarely in our corner. In 1992, the legislative Auditor issued a report to the Legislature entitled Loss of Budgetary Control: A Summary Report of the Review of Special and Revolving Funds. Like gambling, trying to control these funds has defied well-intentioned efforts by the Legislature. Last July, Auditor Marion Higa released an update of the 1992 study which pointed out that there are more than a hundred of these funds still in existence, with balances totalling as much as $220 million. Seventy of these funds failed to meet established criteria yet had cash balances totalling $96 million. We should simply not look to "raid" these funds to balance our budget, but rather to make meaningful changes in the way we structure our non-general funds.

We need to gain control.

We will also take a hard look at the Governor's capital improvement budget request of $900 million, which includes $255 million for school repair and maintenance. Last year we appropriated roughly $500 million in CIP funding, and added another $100 million during the most recent special session. I anticipate that we will approve a moderate amount of additional money, primarily for school repair and maintenance. I would also ask legislators to support CIP funding for another area critical to the future of this State, and that is adequate infrastructure for our agricultural industry.

Over the years, drought conditions have threatened the survival of many small farm operations. Ditches and siphons unused since the days of sugar are falling into disrepair, a condition that some say cannot easily be restored once lost. These irrigation systems together with the construction of more modern networks, can supply water to hundreds of acres of prime agricultural land on each island. Specific improvements could be made to our airports and harbors to provide refrigeration and consolidation of produce being transported to local, national and international markets. CIP funds could also be used for construction of a world-class Farmer's Market which would help to develop the nearly unlimited potential of our agricultural industry.

Seeking new and better ways of conducting the business of government must be our cause, our goal, and our obligation to the people of Hawai'i. We must demonstrate to their satisfaction and to all other entities that deal with this body, that we are indeed, in control.

Mahalo.