Senate warned about siphoning from funds
By Lynda Arakawa
Advertiser Capitol Bureau
State officials yesterday warned the Senate's money committee that significant government services would suffer if it approves a proposal to take about $125 million from various special and revolving funds.
The Senate's proposed draft on House Bill 2827 would take money from more than 45 special and revolving funds to help balance the budget.
The proposal includes taking $35.5 million from special funds used in the development or preservation of affordable housing, $4 million from a special fund used to maintain and operate Aloha Stadium and $3 million from the tobacco settlement special fund.
Special funds are set up to operate specific services, and often get revenue from that area. For example, a portion of gasoline taxes goes into the highway special fund, which pays for road maintenance.
The Senate Ways and Means Committee will vote on the bill, as well as a measure that would raise the liquor tax by 50 percent, on Tuesday.
"I think there are a number of areas where the departments are agreeing we could take some (money)," said Senate Ways and Means Committee Chairman Brian Taniguchi, D-11th (McCully, Mo'ili'ili, Manoa). "They raised some questions about other areas that maybe we shouldn't be taking, so we're going to try to iron some of them out."
Meanwhile, Gov. Ben Cayetano yesterday criticized lawmakers for raiding special funds instead of following his proposal to use all $213 million in the Hawai'i Hurricane Relief Fund. Current legislative proposals call for using about half of that money.
"It's unfortunate because now the Legislature, the Democratic majority, is so concerned about the public reaction that they're beginning to turn over every rock and hiding place looking for money, and in doing so, they're going to hurt some people, some people who otherwise would not have been hurt had we used the money in the hurricane relief fund," he said.
The bill to raise the liquor tax would raise an estimated extra $20 million, said state Tax Department director Marie Okamura. Representatives of the liquor and restaurant industry said raising the liquor tax would hurt the tourism industry and the state economy.
Advertiser Capitol Bureau Chief Kevin Dayton contributed to this report.
Reach Lynda Arakawa at larakawa@honoluluadvertiser.com or 525-8070.
