Mayor expected to reveal huge cuts in city projects
By Treena Shapiro
Advertiser Staff Writer
As the city faces a $180 million budget shortfall, Honolulu Mayor Jeremy Harris is expected to announce in his State of the City address this evening that he will trim at least $100 million from the city's capital improvement project $455 million budget.
Mayor Jeremy Harris's half-hour State of the City address will be televised live at 6:30 p.m. on KHON-2 and KGMB-9 and broadcast live on KSSK-AM-59. It will also be webcast at the city's Web site.
Harris yesterday said in a phone interview the city also may need to increase property tax revenue, which is certain to rise because O'ahu property assessments increased by 6.64 percent over last year.
State of the City
If the property tax rates remain unchanged, that would mean an additional $13 million in property tax revenues for a total of $384 million.
Harris indicated that the tax burden on the property owners could rise higher, but said he would cap the additional amount at $49 million.
Harris will speak at 6:30 p.m. today at the courtyard of Honolulu Hale. The event is open to the public. Attendees should be seated by 6 p.m., when the opening program begins.
The program will feature a pule by Na Kahu Kamaki Kanahele and Kauila Clark, Nalani Olds singing the Queen's Prayer, the National Anthem by Henry Kapono, Hawai'i Ponoi by Amy Hanaialii Gilliom and mele and hula by Ale'a and the keiki of Halau Hula Olana.
Free parking is available in the Civic Center Parking Structure off Alapai and Beretania streets. Light refreshments will be served at 7 p.m. following the address.
The city's fiscal health will be a major issue this year, but Harris said he has faced similar challenges.
City Council members have raised alarms over the projected 2003-2004 fiscal budget deficit, but Harris said the fiscal situation is similar to what he has faced since taking office in 1994. "Every year since I've been mayor we've faced enormous budget shortfalls," generally in the neighborhood of $120 million to $130 million, he said. "The situation is equally challenging this year."
He said the city has dealt with declining revenues by reducing its work force by 8 percent while using new technology to increase productivity. The mayor said his speech will touch on the city's debt, but more details will come when he announces his budget package on March 2.
Last year at this time, Harris announced that the 2002 State of the City address would be his last because of his plans to run for governor. Harris yesterday laughed and said, "Clearly that wasn't the case."
Harris dropped out of the race for governor last May.
"I feel privileged to be able to continue to serve as mayor and to be able to carry out the bold vision our community and the city team has articulated during the sustainability planning," he said.
The State of the City address "is really going to be a forward-looking speech about the opportunities that our island faces and how we need to build our island as a sustainable city and how we're only going to be able to achieve that if we work in partnerships," Harris said.
He will announce some of the services the city plans to privatize.
In terms of economic development, Harris said he will announce initiatives the city needs to undertake in Waikiki, as well as plans to diversify tourism to include sports tourism. He also will touch on efforts to branch into knowledge-based industries, such as biotechnology.
The mayor will discuss transportation initiatives and issues in solid waste, natural resources and land use planning.
In addition, he said will announce a plan to cut the city's energy consumption by 50 percent by 2010.
Reach Treena Shapiro at tshapiro@honoluluadvertiser.com or 525-8070.
