Harris' $1.6B budget limits tax hikes
By Johnny Brannon
Advertiser Staff Writer
Mayor Jeremy Harris is expected to unveil a $1.6 billion annual spending plan today that would raise the tax rate for commercial properties and include money for an islandwide residential recycling program.
The administration has warned of an $87 million revenue shortfall in the fiscal year that begins in July, and any gap must be closed with new money or spending cuts.
HARRIS
Harris, who is returning today from a speaking engagement in Hong Kong, said he would not seek to raise the tax rate for homes or apartments, but gave no details.
He has hinted at linking a fee to the recycling program for households that want to continue having their rubbish picked up twice a week, but has not mentioned other new fees or tax increases.
Some City Council members and fiscal watchdogs predict Harris will also seek to increase sewer fees.
"Unless he's got some rabbit in his hat, I don't think he has a choice," said Tax Foundation of Hawai'i president Lowell Kalapa, noting that the city is under pressure to complete a major wastewater project at Sand Island and replace sewer lines.
Harris cannot run for re-election this year because of term limits, so the budget will be his last of a decade in City Hall.
He is expected to propose at least $250 million in construction projects, including $40 million for road repairs.
But the council has signaled it will sharply question spending that isn't necessary for basic services, and the four-month budget process could grow heated, as in previous years.
Harris has been praised and criticized for launching popular but expensive park, recreation and landscaping projects, some of which cost more than anticipated.
"We need to refocus our city spending on core priorities, and cut out a lot of these feel-good but unnecessary glamour projects," said Councilman Charles Djou. Increased privatization of city services also would save money, he said.
The administration has predicted a tax windfall of $51 million from increased property values, but also faces a growing debt burden and increased costs for some employee salaries and other fixed costs.
Harris has sharply limited some city costs by cutting jobs and pushing for increased efficiency in various departments. The operating budget has grown at a far slower rate under Harris than in previous years.
But Kalapa said he senses more Honolulu residents feel the city has borrowed too much money for beautification projects while falling behind on infrastructure maintenance.
"More and more people are finally beginning to grasp that much of what this mayor has accomplished has been frosting, with very little cake," he said. "People are asking why there are all these potholes and why the sewers are backing up and closing the beaches."
Also, less money is available from some sources that have been tapped to balance budgets in the past.
For instance, spending plans for the past four years assumed the sale of a downtown parking lot would raise up to $15 million. A $10.5 million deal is finally going through, and cannot be counted toward the new budget. The city is eyeing other properties to sell.
Reach Johnny Brannon at jbrannon@honoluluadvertiser.com or 525-8070.
