Djou seeks backing for spending caps
Advertiser Staff
City Councilman Charles Djou is trying to drum up support for debt and expenditure ceilings after Mayor Jeremy Harris vetoed two bills passed by the council at its Dec. 3 meeting.
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In a veto message he sent down last week, Harris called the debt and spending caps "unworkable and unnecessary."
"The debt and spending ceilings are important to the long-term health of Honolulu," City Councilman Charles Djou said.
Harris pointed out that the council has control over the city's operation and construction budgets and that the law would simply regulate the council's behavior. He said the city does not have a spending problem and over the past decade has only increased the budget to cover collective-bargaining pay raises and mandatory state health-fund increases.
In a press release, Djou said, "The debt and spending ceilings are important to the long-term health of Honolulu, and I will be looking for support to override this baseless veto."
Six council members would have to support the ceilings to override the vetoes of bills 61 and 62, which both passed by 5-4 votes.
Bill 61 would limit general-obligation bond debt service to 20 percent of the average operating budget appropriation. Bill 62 would limit expenditures by a formula based on population plus growth.
During public hearings, the administration had bond issuers testify that the city's credit rating would be jeopardized by debt caps.
Walter Dods, CEO of First Hawaiian Bank, sent testimony stating "Honolulu's excellent credit rating should be protected and not made vulnerable to downgrades by actions."
Djou brought in evidence from other governments to show the debt rating would not be affected.
"Debt and expenditure ceilings are used in governments across the nation, including Hawai'i state government, as useful tools for holding down government expenditures and enforcing fiscal discipline," he said.
