Gov. Linda Lingle, like lawmakers, has made affordable housing and transportation priorities for the session, and there are early indications that on some issues there may be more cooperation between the two sides than existed in the first two years of her term.

Senate Democrats want to focus on "the burden that the middle class is taking on in reference to a lot of things from housing to transportation," said Senate President Robert Bunda, D-22nd (North Shore, Wahiawa).

Housing and traffic also are among the quality-of-life issues cited by House Speaker Calvin Say, D-20th (St. Louis Heights, Palolo, Wilhelmina Rise) as priorities for House Democrats. Say said a family making $110,000 annually likely would have trouble qualifying for a loan on a median-priced $495,000 home today. "That's the kind of stuff that really concerns me," he said.

A recommendation by Lingle's affordable-housing task force to split up the responsibilities of the Housing and Community Development Corp. of Hawai'i would allow one part of the housing agency to focus on financing options to help developers build more affordable units.

Senate Housing Chairman Ron Menor, D-17th (Mililani, Waipi'o), said he supports that, but not all of the answers being discussed involve financial incentives. Democratic leaders support Lingle's initiative to scour the state's land inventory to find parcels that can be used to develop affordable units.

Permitting on agenda

Meanwhile, key lawmakers have agreed to look into complaints by developers that foot-dragging by government agencies has delayed the permitting process. Bunda said to expect a discussion on abolishing the state Land Use Commission, an idea Republican leaders welcome. Those who favor eliminating the commission say its authority duplicates the planning functions at the county level, but many believe the commission provides a necessary layer of protection against ill-conceived development.

Lingle, who said she will discuss the specifics of her affordable housing plan in her State of the State address on Jan. 24, has shown some of her cards in the administration's two-year budget plan. It includes $20 million to renovate existing public housing; $20 million for infrastructure improvements such as roads or sewers to help the state Department of Hawaiian Home Lands provide 700 more units annually for Native Hawaiians; and a $2 million increase in the Rental Housing Trust Fund to produce new units.

On the issue of traffic, views differ widely on the best approach to fixing the problem.

House Democrats want to look at legislation giving each county added taxing authority to pay for transportation programs, including a mass transit project on O'ahu, said House Majority Leader Marcus Oshiro, D-39th (Wahiawa). Whether such legislation would mean a new sales tax, an increase to the existing state excise tax or some other mechanism has not yet been determined, nor has whether that financing tool would be permanent or temporary, he said.

Lingle has supported giving counties more taxing capability. Similar proposals have been made in the past but nothing has moved out of the Legislature in recent years. In 1992, the Legislature passed a bill giving

Honolulu the authority to increase the excise tax by one-half cent, but it was nixed by the City Council in a 5-4 vote.

House Democrats have never made the proposal a priority, but Oshiro said he and his colleagues want to move legislation out this session. "The fact that we're willing to list this as a priority sends a strong message," he said.

Senate Democrats also want to address traffic, but don't appear at first glance to be as sold on additional taxing authority for the counties. Senate Ways and Means Chairman Brian Taniguchi,

D-10th (Manoa, McCully), said some lawmakers want to establish a new statewide transit authority responsible for planning large-scale transit projects.

'Devil is in the details'

"We're open as to what the funding source would be, but I think it's just mathematically complicated by the fact that we don't know what the price is," he said, noting that estimates have ranged from $2 billion to $3 billion. "The devil is in the details."

While Honolulu Mayor Mufi Hannemann supported a rail transit project for O'ahu during his campaign, interim city Transit Services Director Ed Hirata said the new city administration is still formulating its plan and he declined to speculate on whether the mayor would support either a county tax or a new transit authority.

Public education again will be a significant topic this session, although the debate likely will not be as intense as last session, when it dominated.

Democrats have said they will review the financing and oversight of charter schools and explore giving middle-class parents greater options and more information about the quality of pre-schools. Lingle also is expected to make an early-childhood-education proposal.

Republicans favor lifting a cap on new, start-up charter schools and giving the University of Hawai'i the authority to grant new charters. The state Board of Education, which has been criticized for its weak oversight of charter schools, now is the only entity that can approve charters.

Lingle and Democratic leaders met privately for nearly an hour Thursday to discuss the upcoming session. Republican lawmakers, who saw their numbers shrink after losses in the November elections, have indicated that they are interested in working cooperatively.

"We're going to be looking for common ground," said Senate Minority Leader Fred Hemmings, R-25th (Kailua, Waimanalo, Hawai'i Kai).

Republicans hope to revive tougher law-enforcement measures that have failed in the past, such as giving police more authority to wiretap and interview potential suspects. House Republicans want police to collect and catalog DNA from all felons and adopt a "three strikes" sentencing law for violent criminals.

Senate Republicans want to provide tax breaks for parents who send their children to private schools.