Lingle pushes for overhaul of Act 221
| • | Business: Criticism of Act 221 mounting |
By Gordon Y.K. Pang
Advertiser Capitol Bureau
With the push for local school boards dead for the year, the Lingle administration appears to be focusing on overhauling the Act 221 tax credit.
Lawmakers are winding down conference committee sessions to reconcile differences in bills passed out of both houses. They have until Friday to reach agreement on some 300 bills and "deck" them for final votes on the House and Senate floor next week. The Legislature adjourns May 1.
Yesterday was the 54th day of the 60-day session.
The administration believes the Act 221 tax credit law is overly broad and allows businesses to unfairly take advantage of the system. Lingle believes proposed changes would save the state about $55 million over the next two years, money she believes can help balance the state's general fund budget.
Over the weekend, Tax Director Kurt Kawafuchi issued a release blaming a $14 million drop in corporate tax collections on Act 221. On her weekly radio show yesterday, Lingle urged citizens to call lawmakers to push for the changes. And yesterday afternoon, Lingle held a press conference with three high-tech business leaders who backed her call for more stringent requirements on the tax credits.
The state's first Republican governor in 40 years told reporters yesterday that hopes to overhaul the public school system by placing a constitutional amendment on the 2004 ballot asking voters to consider seven elected school boards is a task for next year's session. "We work toward the 2004 legislation session," she said. "You don't get everything you want in the first year."
House and Senate education conferees were unable to agree on the language of the measure.
Lingle said her administration remains focused on moving through other pieces of legislation that are still alive, such as eliminating a sunset date on mental healthcare parity, raising the standard deduction for income tax filers and giving tax credits for those who buy long-term care insurance.
Lawmakers have put off decisions on giving developers of the Ko Olina resort a $75 million tax credit, raising the minimum age for students entering kindergarten at public schools and mandating 30-minute meal breaks for employees who work a full day.
One reason why many bills — including one providing money to open the Kapolei Library — are on hold at this point is because they are predicated on the final draft of the state's $7.6 billion biennium general fund budget. Budget conferees are hoping to wrap up the financial plan tonight.
Conferees did reach a tentative agreement that would require the state Department of Health to conduct unannounced inspections of adult care homes.
The health department has committed to adding five more positions, which would enable the department to conduct more surprise inspections.
Staff writer Lynda Arakawa contributed to this report. Reach Gordon Y.K. Pang at gpang@honoluluadvertiser.com or 525-8070.
