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The Honolulu Advertiser
Posted on: Sunday, January 5, 2003

GOP could do plenty for Hawai'i

By Jerry Burris
Advertiser Editorial Editor

When the state Legislature convenes Jan. 15, one of the first orders of business should be a summit between the Democratic majority and the new Republican administration.

The topic? How best to use Hawai'i's new GOP political credentials to make an impact on Washington.

The session will convene in the face of severe budget problems. There are high hopes that Gov. Linda Lingle and her new administration will generate the kind of economic optimism that quickly translates into growth and tax revenue.

But no matter how successful she is, it will take time to see any impact on the state treasury. Hawai'i — like so many states this year — needs help, and it needs it now.

That's where Washington can come in. With Republicans in charge not only of the White House but of both houses of Congress, Republican Lingle should look forward to receptive ears in D.C.

And the national GOP leadership might decide it makes good sense to go out of its way to help Hawai'i. Yes, getting a Republican elected after 40 years of Democratic domination was a coup. But the GOP hold on Hawai'i is tenuous.

The best way to solidify that victory is to demonstrate — in concrete, immediate terms — what Republicans can do for our state.

And there is plenty. True, most of the relief ideas floating around Washington are not state-specific. That is, they would be a boon to any struggling state government.

But if something gets done, bragging rights will belong (at least for the moment) to the Republicans.

What kind of help is possible from Washington?

Here are a few examples:

Sen. Max Baucus of Montana — yes, a Democrat — has proposed a $75 billion stimulus package for the states that essentially would allow them to spend the money as they see fit. This would give states breathing room to maintain health benefits and other social programs.

Baucus also proposes a separate health-insurance tax credit for small businesses, who are finding themselves forced to lay workers off because they cannot afford health insurance.

In another area, Congress — working with the Bush administration — could increase the share paid by the federal government for Medicaid costs.

Finally, there is a proposal which Bush already has endorsed that would be an immediate shot in the arm for states such as Hawai'i. Bush wants Congress to extend temporary federal unemployment insurance benefits to workers whose benefits began expiring right after Christmas.

An extension would put money directly into the pockets of people who would go right out and spend it on necessities. That gets more money circulating and keeps families off the welfare rolls.

Tax cuts that may or may not have long-term benefits to the national economy remain the Bush administration's favored approach. Washington must be convinced that the quickest way to get an economic turnaround going is to look to the states.

Reach Jerry Burris through letters@honoluluadvertiser.com.