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The Honolulu Advertiser
Posted on: Thursday, January 9, 2003

Lingle may ask repeal of special state funds

By Dan Nakaso
Advertiser Staff Writer

Hawai'i's state budget contains more than 300 special funds worth $3.5 billion — the equivalent of the general fund's operating budget — and many of them hold millions of dollars that have sat idle for years, Gov. Linda Lingle said yesterday.

Lingle repeated her promise not to touch the state's Hurricane Relief Fund to balance the budget and suggested that help might come from the untapped special funds.

Many were set up for good reasons, Lingle said, while others no longer make sense.

"These are funds that were either set up for a certain purpose and the purpose no longer exists," she said, "or they were set up to get money off of the main books so people wouldn't follow it as closely."

She said that means $3.5 billion dollars is not monitored by anyone from year to year.

"So we're going to be proposing the repeal of many of these special funds," Lingle said.

The governor's comments, delivered to an audience gathered for the annual awards meeting of Small Business Hawai'i, added new details to plans she has discussed lately as her administration readies its budget proposal before the Legislature's opening on Jan. 15.

Lingle also touched on topics that have frustrated business leaders, such as the need to reverse laws that hinder competition and "unnecessary regulation that does not protect the health and safety of the state but is simply another way for government to intrude into the market place."

She also repeated her message that she wants to add more competition to Hawai'i's health insurance industry; let voters decide whether to break up the centralized Board of Education into smaller community boards, which business leaders say will improve schools and help attract new businesses and build a better work force; and overhaul the state's non-bid contract policies and procurement systems.

On Friday, Lingle's staff will meet with procurement officers from each Hawai'i county, representatives from the judiciary, health systems, Army Corps of Engineers and other federal agencies that "have a clear, open, transparent and honest procurement system" to talk about overhauling the state's procurement system.

Lingle also said that University of Hawai'i president Evan Dobelle called her on Tuesday — "and I didn't hang up."

After her election victory, Lingle had revealed that she hung up the telephone on Dobelle when he called during the campaign to say that he was endorsing her opponent, former Lt. Gov. Mazie Hirono.

Yesterday, she said they set up a meeting for tomorrow. And she repeated her position that UH needs true autonomy from state government.

"If the University of Hawai'i is ever going to fulfill its role as a premier university," she said, "it really does have to have its independence. Whether we like every decision they make, or not, I firmly believe, and I believe this strongly, that they have to have autonomy."

Today, Lingle will name the new director of the critical Department of Business and Economic Development and Tourism.

The new director is "a person who is not out of academia, not theoretical about Asia or about business. I think you'll be very proud."

Lingle's comments drew praise from those in the audience.

"It's all an open book now," said Diane Malinovich, vice president of the Ferro Union Hawaii metal and steel manufacturing company at Campbell Industrial park. "The system's not clogged and it seems like skeletons are coming out of the closet."

Reach Dan Nakaso at dnakaso@honoluluadvertiser.com or 525-8085.