Friday, July 10, 2020
Hawai'i Free Press

Current Articles | Archives

Friday, August 08, 2014
Major storms hit Hawaii after lawmakers raid hurricane fund
By Malia Zimmerman @ 10:11 PM :: 3436 Views :: Hawaii State Government

Major storms hit Hawaii after lawmakers raid hurricane fund

Iselle hits Hawaii followed by Hurricane Julio

Iselle hits Hawaii followed by Hurricane Julio

by Malia Zimmerman, Watchdog.org August 8, 2014 

HONOLULU — As Hawaii feels the brunt of two hurricanes this week, residents believe any substantial damage could be alleviated by the state’s $126 million hurricane relief fund.

But that well has nearly run dry after the state Legislature snatched the funds to balance the budget in 2011.

The fund was established in 1993, shortly after Hurricane Iniki slammed into the islands of Oahu and Kauai on Sept. 11, 1992. That Category 4 hurricane, the most powerful storm to ever hit Hawaii, killed six people and caused $1.8 billion in damage. More than 1,400 homes on Kauai were destroyed and another 5,000 homes severely damaged in the 145-mph winds.

After the storm, several insurance companies either went out of business or refused to insure the Hawaiian market, and as a result, hurricane coverage availability and affordability became major issues for homeowners.

In response, the state established the hurricane relief fund, requiring homeowners to contribute.

As the hurricane insurance market improved in the following years, the fund discontinued issuing hurricane policies, but there was still a substantial fund balance remaining.

Some homeowners wanted their money returned. Senate Minority Leader Sam Slom, R-Hawaii Kai, introduced legislation to facility refunds, but that bill was defeated. The fund proved too tempting for the Legislature and governor, and they raided the fund in 2011 to balance the state budget.

Some $55.5 million was repaid as of August 2013. State Finance Director  Kalbert Young said another $55.5 million will be refunded this month.

“I warned against any special fund being established because the funds would be in danger of being raided by the Legislature or the executive branch, as was the case in 2011,” Slom said. “We cannot guarantee funds that are supposed to be earmarked will ever be used for that purpose.”

So if not for homeowners to access, what’s the purpose of the fund?

There is now adequate insurance coverage available in the marketplace for homeowners to get  private hurricane so the fund isn’t “active” for coverage, Young said. The fund will remain dormant until sufficient private hurricane insurance policies aren’t available, he added.

The fund is considered state reserve and use of the funds is limited, extensively controlled, and future use would require legislative authority, Young said.

However, if a catastrophe occurs and funds are needed to repair infrastructure, the governor and Legislature could use the money for that purpose.

“Clearly, one source could be the Hawaii Hurricane Relief Fund, but others could include cash appropriation, debt authority or special funds,” Young said.

Slom said he wants to prevent the fund from being grabbed by lawmakers again.

“Raiding it to balance the budget for excessive spending is outrageous,” he said.

Hurricane Iselle first hit the Big Island of Hawaii on Thursday evening as a weak hurricane, and then transitioned into a tropical storm as it doused the island chain Friday with heavy rains. Hurricane Julio is expected to hit the islands later this weekend.

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

808 State Update AM940

ABCDEFG Blog

ACA Signups Hawaii

ACCE

ALEC

Alliance Defending Freedom

Aloha Life Advocates

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

American Mothers of Hawaii

AMVETS-Hawaii

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Audit The Rail

Ballotpedia Hawaii

Better Hawaii 

Blaisdell Memorial Project

Broken Trust 

Build More Hawaiian Homes Working Group

CAFR Hawaii

Castaway Conservative

Children's Alliance Hawaii

Children's Rights Institute

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Citizens for Recall

Cliff Slater's Second Opinion

Coffee Break

CSIS Pacific Forum

DAR Hawaii

DeedySupport.com

DVids Hawaii

E Hana Kakou Kelii Akina

E Māua Ola i Moku o Keawe

Farmers For Choice Hawaii

FIRE

Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Get Off Your Butts!

God, Freedom, America

Grassroot Institute

Habele.org

Hawaii Aganst Assisted Suicide

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crime Victims' Rights

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defending Marriage

Hawaii Defense Foundation

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Firearm Community

Hawaii Fishermen's Alliance

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii Meth Project

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Right to Life -- Big Island

Hawaii Right to Life -- Oahu

Hawaii Shield Law Coalition

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation

HI Coalition Against Legalized Gambling

HIEC.Coop 

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Homeless Crisis

Honolulu Navy League

Honolulu Traffic

Horns of Jericho Blog

House Minority Blog

House Republican Caucus YouTube

HPACC

Hump Day Report

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes

KeyWiki

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii

NARTH

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Hawaiian

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons 

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

SenatorFong.com

SIFE Remington

SIFE W. Oahu 

Sink the Jones Act

Smart About Marijuana--Hawaii

St Marianne Cope

State Budget Solutions Hawaii

State Policy Network

Statehood for Guam

Tax Foundation of Hawaii

The Harriet Tubman Agenda

The Long War Journal

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Truth About Trade & Technology - Hawaii

UCC Truths

Union Members Know Your Rights

US Tax Foundation Hawaii Info

Valor in the Pacific

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT