They may not know it, but those who don't recycle bottles and cans are making the state's beverage container recycling program a bit cheaper for everyone else.

The state Department of Health announced yesterday that the overall recycling rate for the fiscal year that just ended climbed to its highest level ever — 72 percent. And a survey by the state Department of Health shows the number of people recycling also is up. The rate is the number of containers recycled compared with those sold.

Still, about 18 percent of residents tell pollsters they don't recycle, and those people have helped the so-called HI-5¢ program accumulate a balance of about $20 million, mostly from unclaimed deposits.

Under the state law that created the beverage container recycling system, consumers are charged a 5-cent refundable deposit and a nonrefundable 1-cent container fee. The container fee is used to cover the administrative costs of the program.

Given the hefty fund balance, the Health Department announced yesterday it will put off indefinitely raising by a half-cent the nonrefundable container fee you pay when you buy a beverage.

The law that created the program raises the nonrefundable fee to 1.5 cents for each container when the redemption rate exceeds 70 percent, but the Health Department director in consultation with the state auditor can waive the fee increase if the extra funds are not needed.

After looking at the income and expense projections for the coming year, state officials decided not to raise the fee, said Karl Motoyama, coordinator for the Office of Solid Waste Management.

"Good on them for not raising the rate," said Hawai'i Kai resident Steven Newell.

While he supports recycling, Newell said he believes the lawmakers deliberately structured the program to be a "money maker" for the state.

Newell said he has seen only marginal improvements in the redemption system since the program was launched in 2005, and said he believes the state has no incentive to improve the system because it gets to keep the unclaimed deposits.

Newell donates his own bottles and cans to charitable groups rather than returning them himself because he said it isn't worth the time he would spend standing in line in the hot sun to get his money back.

"There's actually a disincentive built into it where they're making more money if they don't make it better," he said.

Motoyama said he often hears that allegation from critics of the program, but said it isn't so. The state expects 10 new redemption centers to open statewide in the year ahead, and is trying to make the system more convenient for customers.

"People always think you have this special fund and you're squirreling away funds. We are using the funds for legitimate purposes," and the law only allows the money from the program to be used for the program, Motoyama said.

Administrative costs are less than 3 percent of the total cost of the program, or about $1 million a year, he said.

BALANCED INTAKE

The beverage container program did build up a large cash balance in the first years of the program because recycling participation was initially low at about 25 percent, but this year the program is expected to collect roughly the same amount of money as it spends.

The cash balance in the program at the end of fiscal 2009 is expected to drop to less than $15 million, in part because money was encumbered last year for some contracts that will be funded this year to open new centers and make other improvements, he said.

Consumers are expected to buy 960 million containers, up from 930 million last year, and the program will collect about $62 million in deposits and fees. The program is expected to spend $61 million on refunds, recycling and operations this year, Motoyama said.

The state actually pays out more than it takes in for each can or bottle that is redeemed, Motoyama said. The system collects 6 cents, including the nickel deposit and the 1-cent nonrefundable fee, and pays out 7 cents to 8 cents for each can that is redeemed.

A nickel is returned to the consumer as the deposit, and 2 cents to 3 cents is paid to the processor for recycling the containers, he said.

FEWER COMPLAINTS

The Health Department survey on the bottle bill found the program is viewed more positively than it was two years ago, but still showed mixed levels of satisfaction among consumers.

About 82 percent of the people polled said they recycle, and complaints about the program are definitely down, Motoyama said.

One supporter of the program is Hilo resident Don Pakele, a retiree who said the program has become more convenient has more redemption centers have opened.

"In Hilo over here, they've made it more accessible," Pakele said. "If we do our part, we not only get the money back but we help the environment and help our community."

The greatest improvement cited by consumers in the poll was "more choices," including more redemption centers to choose from, more hours of operation, and shorter wait times.

However, consumers' satisfaction with the accuracy of redemptions payments when containers are weighed declined. About 66 percent said the accuracy of their redemption payments for loads that are weighed has gotten worse, with the main complaint that people did not believe they received the proper refund.

Motoyama said there is "still room to improve the recycling experience."

"DOH continues to encourage recycling companies to train their employees on customer service relations, and to provide customers with options when calculating refund amounts. While some consumers prefer to have their containers counted to get back an exact refund, others prefer to have their loads weighed because it is quicker," he said in a written statement.

The consumer survey was conducted in April and polled 701 residents, including 400 on O'ahu and about 100 each on Maui, the Big Island and Kaua'i. Ward Research conducted the survey.