OHA Hides Secret Budget from Legislators: $2.3M for 'Consortium' to Push Fake Indian Tribe
Protest Rail Tax Hike Monday Jan 26
286 Candidates file for Neighborhood Board Elections
Revised Central Oahu Plan available for review and comment
Chamber of Commerce Hawaii: State of the Economy Presentation
How Progressive Is Our System?
Tax Hike Hype: Caldwell Can't Back up His Rail Debt Figures
SA: City officials are not able to give state legislators estimates on the project's costs or expected shortfall (because they are lying about its size in order to stampede legislators into hiking taxes).
On Monday, Honolulu's mayor will go before state lawmakers and ask that they consider lifting the sunset on the general excise tax surcharge funding most of Oahu's cash-strapped rail project and that they do it now — sparking what likely will be a big debate in this year's legislative session.
However, what Mayor Kirk Caldwell and other rail officials won't be able to do is to give those lawmakers a definitive answer on how much the project will cost. Some 40 percent of the 20-mile, 21-station project's total construction still hasn't been contracted out. Most of that work hasn't even gone out to bid yet. Instead, Caldwell and other rail officials will have to rely on their best estimates.
Currently, the project faces anywhere between a $760 million and a $910 million shortfall, a total that rail officials failed to make clear to the public in recent weeks.
The lack of hard numbers on cost might prove problematic as they look to persuade state House and Senate leaders wary of appearing to burden their constituents with more taxes.
"Absent that information, can they paint a clear-enough picture of the total costs and how will they be able to contain those costs, and what it's going to take to maintain and operate the system going forward to justify an extension of the GET?" Senate Ways and Means Chairwoman Jill Tokuda (D, Kailua-Kaneohe) pondered in an interview Friday. "If they can't, that's going to make it very problematic for this measure. We'll have to see what they come forward with. Policymakers and taxpayers are going to demand that kind of specificity when it comes to something … of this magnitude."
Gov. David Ige and other state leaders have questioned why the 0.5 percent general excise tax surcharge for Oahu, set to expire at the end of 2022, needs to be extended so urgently now.
read ... Ambiguity
Ige quietly plods away as Caldwell slams panic button
Shapiro: ...After Mayor Kirk Caldwell and rail officials repeatedly asserted construction of the $5.26 billion train was "on time and on budget," suddenly it's behind schedule and running a deficit nearing $1 billion and growing.
Caldwell pushed the panic button, pressuring the City Council to RIGHT AWAY loan rail $400 million from city bonds or construction may stop, then pushing state legislators to RIGHT AWAY permanently extend the half-percent rail excise tax, due to expire in 2022, or the rail agency might not be able to repay the bonds.
While campaigning, Caldwell assured voters that rail construction would be fully paid when the tax expired in 2022, with no mortgage carrying forward.
Now he glibly seeks to extend the mortgage — in the form of a continued 12.5 percent tax increase — not one year, not five years, but forever.
Ige's only response so far has been to wonder what's the rush to extend the tax when it doesn't expire for seven more years.
It'll be fascinating to see what shakes out when the governor's distaste for drama collides with the mayor's Quentin Tarantino production.
That's where we start judging Ige on the effective part.
read ... Theatrics
Will there really be any cross-examination of the Ige administration?
Borreca: When Wesley Machida, the state's newly named budget director, briefed the Legislature last week, he explained that the state's "status quo" budget is going up 4.7 percent this fiscal year and 9.9 percent the next.
The reason is because of the already signed public-employee pay raises, paying to borrow money (debt service) and increasing payments for Medicaid.
Machida warned that even with a "no do nothing new" budget, the state's ending balance shrinks from $665 million during this fiscal year to $36 million in fiscal year 2018.
"Any significant increase in spending above the established parameters in this fiscal year or the upcoming biennium could result in a negative ending balance," Machida said.
Among all this executive and legislative branch agreement, however, is that if everyone already sees eye to eye, will there really be any cross-examination of the Ige administration?
"Even during the campaign I told David, even though you and I are friends, it is not as if you are going to get a pass; we will scrutinize your departments as much as I have done in the past," Luke said.
But, Luke added, she is ready to talk.
"We want to have a discussion about where the administration wants to go. It is much harder to be antagonistic when you are sitting in a room trying to work things out. Our commitment is for three of us — the governor, Ways and Means chair and me — to continue to meet during the session," Luke said.
read ... Danger: Political Class United
Star-Adv: State 'skim' of rail tax must stop
SA: State lawmakers pledge to cast a critical eye as Honolulu's over-budget rail-transit project seeks to extend a tax surcharge financing the project. But legislators must also aim that laser focus at themselves, for allowing an exorbitant 10 percent state "skim" of intended rail funding to persist beyond all justification.
Lawmakers must reduce the grossly inflated administrative fee the state charges the Honolulu Authority for Rapid Transportation in exchange for collecting the half-percent Oahu surcharge on the 4 percent state general excise tax.
Oahu consumers have paid the surcharge since 2007 to fund construction of the 20-mile elevated rail system, and far too much of the tax revenue is being diverted to the state general fund....
The "skim" issue is all the more urgent this legislative session not only because the rail project needs more money, but also because the Legislature is poised to consider giving neighbor island counties the option of imposing a GET surcharge in their own jurisdictions.
No such consideration should be given until the state lowers the administrative fee to the actual cost of collecting and administering the surcharge, with no profit taking.
This scheme of boosting state general funds via what amounts to a hidden tax must end now on Oahu, rather than being exported to the neighbor islands....
The president of the Tax Foundation of Hawaii observed on the fiscal watchdog's website that the skim may be unconstitutional, potentially violating the "intergovernmental tax immunity" that prevents sovereign governments from taxing one another.
Tom Yamachika reached that conclusion after noting that in the fiscal year ending June 30, 2014, Oahu's GET surcharge generated $242 million, meaning that the state kept $24 million as its administrative fee.
Meanwhile, the Department of Taxation's total annual budget is $28 million — that's what it costs every year "for DOTAX to do everything it does, including collecting $6.34 billion in total taxes other than the county surcharge," Yamachika writes at www.tfhawaii.org.
As he concludes, because the skim equals 85 percent of DOTAX's annual budget while the Oahu surcharge accounts for less than 4 percent of the revenue DOTAX collects, there is no way it can be justified as a legitimate administrative fee.
Ben Cayetano: "Of course, the 10% fee for "administrative services" is too high. However, when the legislature approved the rail surcharge, all parties to the bargain must have surely realized that the 10% fee was a ploy to raise revenue for state coffers under the guise an "administrative fee." Hannemann, Caldwell understood and agreed to it. The City got the rail surcharge, the state got additional revenue. That was the bargain. Pure hypocrisy to argue about "fairness" now."
Background: The Ten Percent Solution
read ... Star-Adv Editorial
Kauai Councilmembers Not on Board with GE Tax Hike
KGI: Cori Beck, co-owner of Garden Isle Bath and Body, LLC, in downtown Kapaa, said she and her husband make all of the lotions, shampoos, soaps and other products in her store from scratch.
An additional surcharge on top of the current general excise tax, Beck said, would place an additional financial burden on her business by forcing her to pay more for the raw materials used in her products.
“I think 1 percent is a big increase — when you’re talking about every single merchant paying the GET, could you imagine how many billions of dollars that would pull in?” Beck said. “It’s devastating to the small business industry and for people like me who own a mom-and-pop shop. Having an additional 1 percent tax would generate a lot of revenue for them, and I would like a little explanation as to what they’re going to do with all of that money.” (Did you spot the 1% comment? Obvious trick. Act like you are pushing for a 5% GE Tax rate so the 4.5% rate you really expect looks reasonable. Who could be fooled? Keep reading....)
Wailua Homesteads resident Dr. Bob Brown said he owns and operates a transient accommodation rental out of his home and would rather see the state’s four counties get more of their individual share of the TAT that he must pay.
“I think every county should get 100 percent of the TAT, and if we could do that, that’s much better than raising the GE tax,” Brown said. “In no way would I support the county in increasing taxes at this time, but I would support, in every way I can, to get the TAT that the county deserves — I don’t think the state should be tapping into that.”
While the county didn’t have an estimate on how much extra revenue would be provided, some county councilmembers are already opposed to the plan.
Kauai County Councilwoman JoAnn Yukimura said implementing a GET surcharge for general purposes is inappropriate.
“The GET is a very regressive tax, which means that it impacts the working-class and lower-income residents much harder than others because a greater percentage of their income goes to necessities,” Yukimura said. “To put that burden on them for general purposes is not good policy.”
Councilman Gary Hooser agreed and said he is “absolutely opposed to raising taxes and will not support the mayor’s effort to increase the general excise tax on our community.”
“I’m very concerned and very disturbed that there’s this effort now to raise taxes again on our citizens,” Hooser said. “Yes, we have a lot of needs, yes, there’s a lot of things that we need to do like roads and whatnot, but we need to get our financial house in order before we even discuss raising taxes.”
Councilman Arryl Kaneshiro said he wasn’t sure what state lawmakers would decide, but was concerned a surcharge wouldn’t be well received locally.
“Obviously, for the county, any more money is a good thing, but I’m not sure how willing the state is to allow us to do that or what the blowback will be on the community, because, basically, we’d be taxing everybody more,” he said.
Though no proposal has been formally introduced before the Legislature, some lawmakers question whether a county surcharge on top of the general excise tax is a viable option.
“I don’t think it’s going to be received favorably because the state needs to control the GET,” said Rep. Daynette “Dee” Morikawa, D, Koloa-Niihau. “I guess a lot of us are hearing about how people are struggling with taxes and fees, so we really need to rein in on some of those costs or expenses. For me, personally, I don’t like raising any more taxes on Kauai people — it’s too much of a hardship.”
Judy Brunstad, a part-time resident from Meredith, New Hampshire, agreed and said residents on Kauai already pay more for necessities, such as groceries, than people living on the Mainland.
“Coming from the Mainland, there’s a huge difference in the price of food alone, so I’m not sure if people could afford to pay another 1 percent,” Brunstad said. “Just thinking of the cost already, it is just too much. Some people are just struggling to get by here.”
As an alternative, Yukimura said it would be better for county officials to push for a 0.5 percent general excise tax surcharge that would be earmarked for public transportation (Yup. You thought they were against the tax hike all the way thru this article, but at the end Yukimura gets to it. Suuurrrrprise! We want 0.5%. Suckers! It is soooo easy to play you for the fools that you are.)
SA Big Q: 61% say 'No' -- Do you think all counties should get the option of a half-percent tax surcharge if it’s earmarked for narrow, specified uses?
read ... Tax Increase Pitched
On the Agenda This Week at the legislature
AP: - GOVERNOR’S GOALS - The week will kick off with a speech by Gov. David Ige, who will outline his policy priorities in his first annual State-of-the-State address Monday morning. Monday is the deadline for the governor to submit his legislative package of bills, so the public will begin to get a sense of what he hopes to accomplish.
- COUNTY CASH - The heads of Hawaii’s four counties will meet with the money committees from both chambers Monday afternoon to talk about their financial needs. Honolulu Mayor Kirk Caldwell is expected to ask to extend a rail tax indefinitely.
- STATE OF JUDICIARY - Hawaii Supreme Court Chief Justice Mark Recktenwald will deliver his State of the Judiciary address on Tuesday.
- GOVERNMENT TRANSPARENCY - Government agencies are being asked to take good care of the documents that they’re required to share with the public under a bill that will be heard in the Senate Committee on Judiciary and Labor Tuesday.
- BILL CUTOFF - Even though the session just began, the last day to introduce bills is Thursday.
Related: 2015 Legislative Calendar: A Guide to the Deadlines
read ... agenda
Environmentalists Criticize Hawaii Gov. Ige’s Land Board Nominee
CB: A MoveOn.org petition urging state senators to reject Ching’s nomination calls the appointment “putting the fox to guard the hen house.”
The Sierra Club of Oahu also issued a statement criticizing Ige’s choice. The organization sued to stop Koa Ridge and unsuccessfully campaigned to prevent the development from getting approved.
“As far as we can tell Mr. Ching has no professional experience protecting Hawaii’s natural resources. He seems to care more about concrete than conservation,” said Sierra Club Oahu Chairman Anthony Aalto in an email.
Aalto noted that a Honolulu Advertiser article dated January 5, 2005, said of the nominee: “Asked by one senator how long it should take to approve a housing development, Ching deadpanned, ‘Just sign a document and tell us go,’ drawing laughter from yesterday’s participants.”
read ... It Begins
Kauai County Must Cut Programs to Pay for Union Contracts
KGI: County of Kauai officials said they have to tighten their belts if they want to find the money to pay for increased costs in the upcoming budget.
Department heads are being tasked with finding a collective $8.2 million in cuts or reductions as they prepare for the fiscal year 2016 financial plan.
It’s a move that, county officials say, will help them offset about $11.8 million in increased costs next year, including $8.9 million in anticipated collective bargaining raises for all unionized county employees.
read ... Pay for HGEA
Kato: Saiki Bill Worse than No Journalist 'shield law'
SA: House Bill 295 and Senate Bill 496, introduced by Rep. Gregg Takayama (D, Pearl City-Waimalu-Pacific Palisades) and Sen. Laura Thielen (D, Hawaii Kai-Waimanalo-Kailua), respectively, put back the same language that was in place from 2008 to 2013.
An attempt to extend the sunset date on the law was shot down during the waning days of the 2013 legislative session.
However, House Bill 17, introduced by House Majority Leader Scott Saiki (D, Downtown-Kakaako-McCully), adds language that allows the shield to be lifted in a wide variety of circumstances that media advocates contend renders the measure almost meaningless.
Former reporter and current University of Hawaii journalism professor Gerald Kato said the added language in the bill "severely limits the scope of the privilege."
The measure is so onerous that "it opens up all kinds of potential for mischief against journalists," Kato said. "My feeling is we're probably better off without a law instead of having a law that, in effect, limits the rights of journalists." ...
Hee maintained the former shield law was too broad and fostered irresponsible journalism. When advocates pushed to have the shield law permanent, Hee sought restrictions to the law including removing bloggers and other free online media from any protection....
(Now Hee is unemployed, and his brother is facing multiple federal felony charges. Learn from this.)
read ... Shield Law
Hawaiian Electric and HawaiiGas jockey for position to become the state's principal supplier of liquified natural gas
SA: HawaiiGas is proposing to pursue the option of bringing in LNG in larger quantities — much larger — than required to serve its current customers.
Hawaiian Electric Co., who at the outset would be by far the principal user of the fuel as a substitute in its oil-fired turbines, believes it could secure a better price than the gas company could. NextEra Energy, the Florida-based company seeking to acquire Hawaiian Electric Industries, has strong connections with natural gas sources, company officials say.
Finally, environmental groups solar contractor lobbyists such as Blue Planet Foundation don't think LNG makes much sense for Hawaii at all would drive down the cost of energy so much that the solar contractors' business model would not work.
SA: Utilities line up supplies of natural gas
read ... LNG
Bisexual Child Molester Cries 'Discrimination', Bullies DHS into Giving Him More Boys to Rape
SA: In an April 2012 motion opposing Morris' supervised release, Maui Deputy Prosecutor Simone Polak referred to multiple red flags, including the defendant's dual identity, failure to abide by a court order to surrender his passport and the trips he took without his wife "to such exotic places as Panama and Ukraine, places well-known for their sex tourism."
Morris also was unemployed, had been the target of a previous child abuse investigation in New York and got married in 2002 in Puerto Rico to a girl who was only 14 or 15, according to court documents. He was 22 at the time.
Yet despite such a history, the state Department of Human Services issued him a license — under the Morris name — to be a foster parent, sometime after he moved here from New York in 2008. Within about a year, he already was molesting his first foster child.
In December 2013, Morris pleaded no contest to several counts of sexually assaulting three boys placed in his care at different times by DHS. The abuse on Maui spanned from March 2009 to August 2011.
Morris was prosecuted under that name, but court documents also refer to Rios as his AKA — also known as. It's unclear whether he legally changed his name.
Morris was sentenced in February to 20 years in prison and is incarcerated at the Halawa Correctional Facility.
The Morris case has many bizarre aspects, and court documents in the criminal proceeding and several civil ones portray a man with a history of mental issues.
At one point in the criminal case, he was found to be unfit to proceed. And at his February sentencing hearing he told the judge that he "loved every child," that many of the prisoners he met while incarcerated needed to be loved instead of put "in a cell to rot," and that everything harmful in the world, including the military, guns and bombs, should be abolished.... (Yes Progressives, he's one of yours.)
During the criminal proceedings, Morris told authorities that he had been unable to get a job since suffering a work injury in New York. After he and his family moved from Maui to Kauai in September 2011, his wife told authorities that she was staying in a homeless shelter "pending possible housing," according to a court bail study.
Given what appeared to be his shaky finances and jobless status, it is unclear how Morris met the income standard required for obtaining a foster license.
According to state law, an applicant must have sufficient financial resources to maintain an adequate standard of living for the family — before the addition of a foster child.
Once Morris obtained his license, DHS ignored or did not follow up on repeated warning signs that he was unfit to be a foster parent, according to the victims' lawsuit.
Whitworth told the court that Morris targeted special-needs children who had lost hope in their families, the system and themselves. His youngest victim was 10, the others 15 and 16. Two were brothers.
read ... Bisexual Child Molester
Michigan Organizes to Expel 'Dirtbag' Mitch Kahle
DN: "How is it that a dirtbag can come into a community and cause so much controversy and destruction?" asked Rick Phillips, 59, a Spring Lake real estate broker who organized a rally to support the cross last year. "These carpetbaggers need to be driven from our community."
Residents also hope to recall one of the Grand Haven council members who voted earlier this month to remove the cross. The ballot language was approved by county officials Thursday, allowing them to petition for a recall election against Councilman Bob Monetza.
read ... Out Out Out
Regents Fill Another $230K Plus Tenure Administrative Position
SA: Dickson previously was associate dean of the College of Arts and Letters and executive assistant to the president for planning and special programs at the San Bernardino campus.
She holds a master's degree in communication and a doctorate in interpersonal and organizational communication, both from the University of Southern California.
The UH Board of Regents previously approved a $19,168 monthly salary for Dickson, or $230,016 a year. The board this week approved granting her tenure upon appointment, which is effective Feb. 2.
Dickson replaces Linda Johnsrud, who had been UH's longtime executive vice president/provost for academic affairs before stepping down in 2013 to take a job at the University of Texas.
read ... Why Tuition is High
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