Legislature Opens to Tough Economic Year

The sagging economy, state budget deficit, taxes, gambling, education, energy and ceded lands are among the many issues that have come to light since the opening of the State Legislature on January 21. The Democrat majority along with our Governor, will set the agenda for this year's session, that so far has focused on budget cuts and revenue enhancement to offset the state budget shortfall.

The Council on Revenues expects Hawaii tax revenue to drop 3% this fiscal year. The state will be forced to cut an additional $125 million unless revenues can increase.

Some legislators have proposed tax increases to fund education and other programs. Other legislators as well as the Governor have opened the book on gambling and may toy with the idea of using it as a revenue generator. Special funds may also be raided to deal with the shortfall. I continue to oppose raids on special funds and even their creation. I also oppose gambling and tax increases. All of these are on the table this year.

The Governor asked state employees, the legislature and the judiciary to forego pay increases this year. The legislature got a pay increase on January 1 after it was approved in 2007 by the State Salary Commission. The State Judiciary wants their 10% pay raise scheduled for July 1.

I introduced bills (SB362, SB368) to allow the legislature to suspend salary increases recommended by the salary commission and a bill that will allow a legislator to waive a salary increase (SB369) recommended by the commission.

Among legislation I introduced this year are the following: SB313 - Repeal of the Country Surcharge on the General Excise Tax (the one that funds the $7 billion rail) - the state is looking at suspending the dispersion of this fund to the City & County of Honolulu for at least a year to offset the budget shortfall. I support abolition of this tax. SB314-GE Tax holiday; SB367-Thrill craft permit renewal deregulation; SB359-increasing award amount in small claims court from $3,500 to $5,000; SB360-allowing home schooled children to participate in DOE school extracurricular activities; SB349-preventing the use of foreign substances in water like fluoride; SB336-repeal GE Tax on food and medical services; and allowing for Initiative, Referendum and Recall (SB331).

The Senate will have 14 committees of which I will be on 6. They include the Judiciary and Government Operations (JGO), Economic Development & Technology (EDT), Labor (LBR), Tourism (TSM), Higher Education (HRE) and Transportation, International and Intergovernmental Affairs (TIA). There are 23 Democrats and 2 Republicans in the State Senate this year. Senator Fred Hemmings continues as Minority Leader and I am back as Minority Floor Leader, a position I held from 1997 to 2002. I also gave the minority caucus opening day speech on January 21. For more information on the legislature go to our website at http:// www.capitol.hawaii.gov.

I gave the opening speech for the Senate Minority. The speech can be downloaded by clicking here.

With Senator Fred Hemmings and UH Professor Panos Prevedouros on opening day, Senate floor.