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Wednesday, April 24, 2013
April 24, 2013 News Read
By Andrew Walden @ 1:38 PM :: 4424 Views

WaPo: "Another race-tinted showdown in Hawaii"

Stanley Chang Running for CD1?

HSTA Cheers Defeat of 'Instructional Hours', Targets Preschool Vouchers

Hawaii Ranks 41st for Business

Gallup: Hawaii Most Stress-Free State

US Attorney General to Honor Hawaii Victims Rights Advocate

Sabato: 2014 is Hawaii Republicans Best Chance

CB: Sabato said, if there were any election in which a Hawaii Republican could be sent to Congress — besides a special election, like the one that Charles Djou won in 2010 — it would be in a midterm election when the president is not on the ballot. Especially this president.

"It's possible, but I think highly unlikely," he said. "You always worry about a six-year-itch election. A wave can build, and members of a minority party can be elevated in the most outlandish places. You never know for sure.

read ... Mid-Terms

CD 1: Crowded field of Democrats could compete in the primary

SA: Chang filed paperwork in January with the Federal Election Commission for a potential run as a Demo­crat in House District 1 and raised a token $26,000 in the first quarter of 2013, according to FEC records.

A decision to enter the race would give him a leg up on others who said they were weighing whether to run in a primary. Those included state Sen. Will Espero (D, Ewa Beach-Iroquois Point), Rep. K. Mark Takai (D, Halawa-Aiea-Newtown) and City Councilman Ikaika Anderson. Candidates for U.S. House are not required to live in the district, as long as they live in the state.

Others mentioned in political circles as potential candidates included former U.S. Rep. Ed Case, former Hono­lulu Mayor Mufi Hannemann and former Gov. Linda Lingle.

Lingle said she would not be running. Case and Hannemann did not immediately return telephone messages seeking comment.

Djou also did not return a telephone message seeking comment.

Hawaii GOP Chairman David Chang said he was unaware of Djou's plans, but regardless, thinks an open seat would be a great opportunity for Republicans and Hawaii.

"We had a Republican hold that seat, and he's got name recognition," David Chang said of Djou. "He ran last year and did relatively well considering Barack Obama was on top of the ticket.

"On top of that, the House is majority Republican. It would be wise for Hawaii to have one member in each party to be able to make sure that when any bills or anything related to Hawaii go in the House, it get the proper attention that it deserves."

read ... Joining the race

Hanabusa Angry, Schatz Vulnerable

CB: "Clearly, she was going to run for either senator or governor, and she had reason to do both," he said. "She was very unhappy with the governor for appointing Schatz and very unhappy with Schatz for having the seat."

On first blush, Sabato said Hawaii's demographics would appear to give Hanabusa the edge "because, let's be honest, Schatz is white and Jewish, and while that would work in New York, it doesn't necessarily in Hawaii."

Sabato said that the DSCC's decision to back Schatz over Hanabusa came from Harry Reid, the Senate majority leader. The support of "DC Democrats" will be crucial in the primary.

Jennifer Duffy of the Cook Political report said she was not surprised that Hanabusa chose to run for Senate rather than the governorship.

"It seems that that is where her ambitions have been, and that Sen. Inouye felt strongly that she would do well there, so it just made a little more sense," she said.

Still, Duffy said a run against Abercrombie had to have been tempting.

"His numbers haven't been great," she said, referring to popularity surveys. "He's done some things that have left him open to criticism, like (what he said about) the Pro Bowl. I think she could have gone after him on some management stuff."

That said, Duffy said Hanabusa's congressional tenure would not have been helped in a run against Abercrombie because support for Congress is these days "is not stellar."

"Honestly, she starts at something of a disadvantage," she said. "One, she's got to raise money, and two, the party is not with her — the DSCC is the one that matters in this case. Schatz needed their help to raise that money and help put his campaign together."

Duffy continued: "The overall strategy (for Schatz) was to show them that you can raise money money at home, and then the rest will come. And part of it was to send a message to Hanabusa that people have decided who they are with, and they are with him."

Nathan Gonzales, a deputy editor with Rothenberg, said Schatz is vulnerable.

"He is the the senator, but he is not exactly a true incumbent because he was not elected to the position," he said. "When you factor in the circumstances of his appointment, it really rubs some people the wrong way."

Gonzales also said Hanabusa "has a constituency, name identification, even more than Schatz right now."

Gonzales suggested the DSCC backing may not be as helpful as some believe.

"It is important but it is not definitive," he said. "Democratic strategists in Washington really try to avoid primaries like the plague, because they believe they are just not helpful, that it can be an unnecessary drain on time, energy and resources. But the big 'but' is that, because the seat isn't in real danger of falling to Republican hands, it's not as much of a concern."....

"Now, part of this may depend on the governor's recovery of his popularity or not — that is, who challenges him in the primary," he said. "A gubernatorial primary will drive turnout. When there is a double-header primary, usually people care more about who is governor then senator. Governors make more decisions that effect everyday lives of people in a state, and the executive office is more interesting and more dynamic."

Sabato continued: "Now, having said that, I can't think of anyone running against the governor, even though he is not very popular. He is very likely to win a second term, and that is a great advantage for Schatz. If Abercrombie is freed from concerns about re-election, he will undoubtedly flex his muscles and try to help Schatz out. That's his guy, his lieutenant governor."

Hanabusa may benefit from gender, said Sabato, noting that women usually make up 60 percent of primary turnout....

CB: Caldwell: Hanabusa’s Candidacy Didn’t Come Up

read ... National Political Analysts Give Schatz The Edge

Shapiro: Hawaii Needs Louisiana Jungle Primary

Shapiro: If you think Democrats have a lock on Hawaii political power now, see what happens if the party succeeds in limiting who can run for office as a Demo­crat and who can vote in Demo­cratic primaries.

After failing to prevent Demo­cratic state Sen. Laura H. Thielen from running against a favorite of party leaders, Demo­crats are seeking legislative and legal remedy to tighten their control over who runs as a Demo­crat.

And the party is seeking more say over who votes as a Demo­crat with a lawsuit to overturn Hawaii's open primaries, which allow voters to participate in party primaries without declaring party affiliation.

Most local voters don't officially belong to any political party, and forcing them to declare would send Hawaii's low voter turnout plummeting further....

The litigation is supported by special-interest caucuses that write the party platform and increasingly demand 100 percent fidelity to it by Demo­cratic officeholders — something never seriously expected in American politics before American politics became gridlocked.

Prominent lifelong Demo­crats such as Ben Caye­tano, Mufi Hannemann, Ed Case, Gary Okino and Dono­van Dela Cruz have had their Demo­cratic bona fides questioned because they differed with the platform on labor, gay marriage or development issues....

A better solution than closed primaries would be to follow California's new model and end party primaries and major-party privilege.  (It's easier to pitch the Louisiana Jungle Primary if you tie it to California and act like it is 'new'.  Who will be fooled?  Keep reading the sales pitch....)

Simply have a single primary for each office in which all candidates run — Demo­crats, Republicans, independents and those from third parties.

The top two run off in the general election, even if they're both from one party or both from neither major party.

Near term, both candidates reaching the general might be Demo­crats, but they'd be picked by the entire electorate and not party bosses.

Long term, it'll help level the playing field for out parties and independents. (Wrong.  It will limit the General Election ballot to just Democrats while protecting old-boys within the Democratic Party, for instance.)  In California more lackluster incumbents are being challenged by members of their own party.  (But not by other parties, see!)

For all practical purposes, Hawaii is a one-party state; Republicans, third-party candidates and independents are effectively irrelevant in statewide races and most legislative districts. (And my plan will keep it that way!)

As Explained: Democrats Closed Primary: Civil Beat Gets it Wrong

read ... More Slip Between Your Fingers

$130M for State IT, $400M for School Maintenance

AP: Tuesday's budget proposal dedicates more than $3 billion for capital improvement projects, including more than $400 million for school infrastructure repairs.

"You can't have a 21st century school with 20th century electrical wiring," said Rep. Sylvia Luke, chairwoman of the House Finance Committee. Luke says the funding will help nearly every school in the state.

The proposal also includes $1.2 billion for the Department of Transportation to fund improvements for airports, roads, bridges and harbors, and sets aside tens of millions for hospitals.

The budget further appropriates more than $130 million to update the state's aging information technology infrastructure.

SA: $10 million in general fund money to nonprofits through grants-in-aid.

read ... Hawaii lawmakers negotiate $23.8B budget proposal

Preschool, Solar Scammers Let to Squabble Over $30M Pie

CB: State budget negotiators on Tuesday passed a $23.8 billion biennium budget three days ahead of their internal deadline, but they were unable to agree on how much money to put toward economic growth and early education initiatives.

House Finance Chair Sylvia Luke and Senate Ways and Means Chair David Ige, who together led the budget talks over the past two weeks in conference committee, said they will let the chairs of the committees in charge of those bills determine the final details later this week.

“We are planning to fund bills in some way, shape or form,” Ige said after the packed evening meeting at the Capitol. “We wanted to be careful not to blow up the budget.”

The committee chairs who still have bills with blank appropriation lines will be competing for a slice of a $30 million pie that Ige and Luke said they have set aside in the six-year state financial plan. They recognize it’s not enough to fund all the requests for programs and positions, but point at the increasing cost of non-discretionary items such as Medicaid, health benefits and new union agreements.

Read ... Running out of Time and Money

10 'Unused' DoE Parcels Worth $120M

SA: There is bound to be resistance to change — school communities such as supporters of Jefferson Elementary School in Waikiki have already expressed their reservations. Nobody's campus has been selected, so that concern is premature.  (Uh-huh)

And an initial review of only 10 unused parcels provides a reality check: Their total value is estimated at $120 million. The state can't afford to let this public resource go fallow any longer, especially with the benefits that could go toward school children developers.

read ... School lands bill deserves try

PUC: "Black Box", "Rubberstamp for HECO"

DN: “As many of you know with our invitation you also received a survey, and here's what I learned from the survey. If you appear to be a practitioner before the PUC, the general thought was that we were making improvements, but lacked the resources. On the other hand, those who were not regular practitioners before the PUC thought we were incompetent, a rubber stamp for HECO, didn't listen to the public, opaque, operating in a black box. So no doubt, the largest stakeholder group -- the one that the PUC decisions affect the most, the general public, or the ratepayer -- does not hold the agency in very high regard.”

read ... Henry Curtis

Romy Cachola Endorses Scheme to Move EUTF to Captive Insurance Company

CB: The State House of Representatives voted to endorse a proposal to the Senate under SB 946 SD1 HD1, which would jointly address the unfunded liability and create a program with alternative means of saving the state money. In addition to increasing the State’s contributions to pre-fund future retiree healthcare costs, the State is to create a captive insurance company within the EUTF that covers only government employees.

Here are the advantages of a State captive insurance company:

  1. According to a report by the State of Hawaii Insurance Division there is a potential for the State to find savings of 5%-25% by creating a captive insurance company. At the current costs of $800 million in healthcare premiums, this would amount to a $40 million saving at the most conservative estimate. Once the said savings are realized, there will be no increase in healthcare premiums for both employer and employees the following year. These savings will also be placed in a reserve account for future use.
  2. By insuring the public employee health benefit in a captive, the state and counties (employer) and EUTF members will not be susceptible to continuously increasing health insurance rates requested by health insurers.
  3. Ability to directly negotiate prices with physicians, surgeons, hospital, and other healthcare providers which results to better understanding of actual costs of health care benefits from the actual providers of services. 
  4. Earning investment income on loss reserves for future claims payments that have not yet been paid. 
  5. Additional savings due to direct access to the wholesale price of reinsurance. Reinsurance is needed to protect the captive from catastrophic events.

Additionally, this out-of-the-box approach in addressing our unfunded liability through direct contributions and innovative cost-saving measures, demonstrate our serious commitment to solving this critical and difficult issue. This could translate into improving bond ratings

Reality: Creative Insolvency: EUTF to Enter ‘Shadow Insurance Industry’?

read ... Captive to Romy Cachola

SB1171: Bill's opponents rail against partial archaeological surveys

SA: "If this bill becomes law, large-scale developments could begin without first identifying all of the burial sites and historic properties that might lay in the path of the bulldozer," Ty Kawika Tengan, an ethnic studies and anthropology professor at the University of Hawaii at Manoa, told the crowd. "This law would thereby phase out the legal obligation and moral responsibilities of the state to protect the integrity of the islands' historic and cultural heritage."

David Kimo Frankel, a staff attorney for the Native Hawaiian Legal Corp., said the supporters of the bill are "trying to overturn the Supreme Court decision."

If the bill becomes law, it would affect future projects.

Lawmakers say they want to clarify the current law. "I think we need to come to a reasonable compromise because the Supreme Court justices in their decision told us that their decision was based on a lack of clarity in the law, so what we're trying to do here is provide clarity in that law," said Sen. Glenn Wakai (D, Kalihi-Salt Lake-Alia­manu), chairman of the Senate conference committee on the bill.

House and Senate conferees have scheduled a conference committee meeting for 9:30 a.m. today in Conference Room 423 at the Capitol.

Related: How A&B Wins Big From Environmental Litigation

read ... Bill's opponents rail against partial archaeological surveys

City leaders go to Washington for rail meetings

HNN: Grabauskas says federal transportation leaders did reiterate the city will get $14 million less this year in federal funding....

"We were sitting with the Secretary of Transportation for the United States who said this is a good project, it's a meritorious project and we're proud to have our money invested in it. I don't know what the future might hold but I will say today we are in as strong a position to move this project forward as we've ever been," said Grabauskas. "On our current schedule we hope to get in front of the judge later this year and also have the state and the federal case both addressed and put to bed by the end of the year."

Meanwhile rail opponents have asked the Ninth Circuit Court of Appeals for their case to be heard before construction starts up again in September and think the rail can still be stopped.

"We think we have a great case. You cannot just present a study of alternatives when the only thing you are studying is heavy rail," said Cliff Slater, rail opponent. "We all regard this as blight on the community both financially, visually and in every other way."

SA: Grabauskas dismissed Tuesday the possibility that the plaintiffs would succeed in stopping rail

CB: Is Honolulu's Rail Money on Track Given Sequestration?

read ... Rail Meet

Wooley committee shelves bill to study GMO labeling effects

SA: The debate over whether genetically modified produce sold in Hawaii should be labeled as such came to a close at the state Capitol this week with the House snubbing a Senate resolution that called for several state agencies to study the issue.

Rep. Jessica Wooley, chairwoman of the House Agriculture Committee, said she chose not to hear Senate Concurrent Resolution 34 when it moved to the House because she thinks "it's a waste of time and energy."

"When we're just talking about produce, I mean, this is ridiculous," said Wooley, who supports labeling. "There's just no purpose except to distract us from the real issue."

Wooley (D, Kaneohe-Kaha­luu-Haiku) said she plans to work with stakeholders before the 2014 Legislature to improve on the wording of House Bill 174, which Senate committees deferred earlier this session.

read ... No Study

New life could be coming to Tesoro refinery

KHON: There’s a ray of hope for more than 200 Tesoro workers who are about to lose their jobs. Both the union and the company say there are possible buyers.

The refinery in Kapolei is supposed to shut down on May 1. That will still happen. But if a new company takes over to run it as a refinery, then the workers will be rehired.

Tesoro says it is in discussions with multiple potential buyers.

In a statement, Tesoro says, “It has informed the workforce that it will evaluate and pursue all options that could potentially lead to a successful sale.”

It could be sold as a terminal to import fuel, which would not require as many workers, or remain as a refinery with all the workers rehired, which is what the union is hoping for....

“I’m very optimistic that we will be able to find a buyer for this refinery. We think that it’s definitely needed for Hawaii,” United Steelworkers spokeswoman Lynne Hancock said.

But Tesoro points out that the discussions are still in the early stages. So the workers will still be laid off on May 1 and the refinery will be converted to a terminal.

The rest of the facility will be mothballed so a new company can take over easily. But it could take months before the workers can be rehired.

“In the case of the Philadelphia refineries, it was in a matter of two or three months that the deal came together and a formal announcement was made,” Hancock said.

read ... Tesoro? 

Oil Company Cashes in on 'Green' Energy 

PBN: Chevron Technology Venture is planning to build a solar photovoltaic system facility on 4.5 acres of land that its parent company, Chevron USA Inc., owns in Hawaii and sell renewable energy from the development to Hawaiian Electric Co. through its feed-in tariff or FIT program.

Chevron Technology Ventures also is inthe process of developing a 15.5-acre solar thermal demonstration project at its Kapolei refinery.

Al Chee, spokesman for Chevron Hawaii, told PBN that the project is moving steadily through the environmental review process.

Click here to download more information about the project.

read ... Subsidies

City Council committee OKs islandwide smoking ban

SA: A bill that would ban smoking at all 293 city parks and beaches gained preliminary approval Tuesday from the City Council Public Safety and Economic Development Committee.

Bill 25 (2013) comes on the heels of a measure signed into law by Mayor Kirk Caldwell earlier this month that bans smoking at seven East Hono­lulu beach parks.

The committee Tuesday amended the bill so that it would not take effect until Jan. 1. The change was made to address concerns raised by city Parks Director Toni Robinson that her agency would not have enough time to educate the public and put up the signs necessary to enforce the ban....

Michael Zehner, co-chairman of the Hawaii Smokers Alliance, was not at the hearing, but told the Star-Advertiser that the bill erodes the civil liberties of everyone, not just smokers.

"Ultimately, they don't want just beaches and parks, they want every street and sidewalk, every golf course, every campsite, every park, even people's homes, and this is just another step toward that," Zehner said in an interview....

read ... But Just for Tobacco

Airlines trimming flights to isles

SA: State tourism officials worry that schedule reductions in the second half of the year will stunt industry growth....

read ... The End is Near 

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