Agencies favor raiding hurricane fund

By Kevin Dayton
Advertiser Capitol Bureau Chief

Hawai'i department heads and social service advocates yesterday endorsed a proposal to take $100 million from the Hawai'i Hurricane Relief Fund to pay for schools and other programs.

The Senate Ways and Means Committee heard from agencies such as the University of Hawai'i, Department of Education and others worried that their budgets will be slashed unless the fund is tapped.

"If not for this bill, the university would be facing a 5 percent cut, or $14 million," said James Sloane, vice president for administration and chief financial officer for UH.

The relief fund has about $217 million, and the state House has proposed that about half of that be deposited in the general treasury to help offset a projected shortfall in state tax collections.

The House bill also proposes that up to $15 million over three years from the fund go for matching grants to encourage homeowners to make their homes more resistant to wind damage.

Senate Ways and Means Chairman Brian Taniguchi said the Senate likely also will propose tapping the fund for $50 million to $100 million.

Republicans are against it, arguing the money in the hurricane fund should be left alone or returned to the people who paid into it. They say the state should cut spending.

Honolulu resident Arthur "Bud" Lush, in written testimony, urged lawmakers to refund the money if it won't be applied to hurricanes.

"There is no budget crisis that can justify raiding this fund," he said. "Using this money for any other purpose is wrong."

But testifying in favor of the transfer were organizations such as the Bishop Museum and The Mediation Center of the Pacific.

Murray Towill, president of the Hawai'i Hotel Association, said dipping into the hurricane fund is a better alternative than cutting money for tourism promotion or raising taxes.

Reach Kevin Dayton at kdayton@honoluluadvertiser.com or 525-8070.