Posted on: Monday, May 13, 2002

ISLAND VOICES
Honolulu is sound fiscally

By Benjamin Lee
Managing director of Honolulu

Over the past eight years, the city has learned to do more with less. Like the rest of the state, we've suffered through a stagnant economy, deflated real estate market and decline in our revenue base. We've weathered the tough times without cutting services or dipping our hand into the pockets of taxpayers unless absolutely necessary.

To the credit of city workers, we've actually increased the quality and variety of services to the public with $62 million less in property tax revenues than in 1994. This has been achieved by cutting the number of city departments from 24 to 16, and reducing the city work force by 7 percent.

Today our city work force is smaller by 629 positions than it was eight years ago, yet Honolulu employs 244 more police officers and 60 more firefighters than it did at that time. As a result, our city is one of the safest cities of its size in the country, and Governing magazine has recognized us as one of the 10 best-managed municipalities in the United States.

How has this been possible given the economic slowdown?

The answer is smarter government and a management style that increases productivity through automation and on-line services. We've also assumed a responsible borrowing philosophy that capitalizes on the city's excellent bond rating and historically low interest rates.

Now the City Council is proposing cuts that threaten to undermine the progress we've made. Some members of the City Council have gone so far as to warn that Honolulu is on the verge of financial collapse. These allegations are at odds with the views of America's leading financial experts. As recently as a month ago Salomon Smith Barney reported: "We can unequivocally state that Honolulu's current financial position remains strong, and any local concerns regarding 'bankruptcy' or dire financial consequences as a result of current policies are unfounded."

It's easy to overlook the fact that the administration has produced yet another balanced budget for fiscal year 2003 while baseless warnings of financial apocalypse capture the headlines. Holding the line on property taxes and submitting a bare-bones budget apparently aren't enough for some people.

The city administration's proposed budget is lean, responsible and fiscally sound. It protects public safety, invests in needed infrastructure, promotes economic growth and maintains the efficient functioning of our city.