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Monday, January 5, 2015
January 5, 2015 News Read
By Andrew Walden @ 1:43 PM :: 3828 Views

Lawsuit: OHA Uses Corporations to Sidestep Open Meetings Law, Loot Assets, Line Cronies' Pockets

Hawaii Election 2014: Public Sector Unions Defeat Private Sector Unions

No Health Benefit from Cigarette Tax Hikes

Kelii Akina: 2014 Business Year in Review with Kam Napier

Kelii Akina Interviews Kalbert Young on Hawaii Government Financial Condition

Ige: Abercrombie's Labor Agreements Cost More than State Revenues

SA: Last month, as he submitted his budget for the next two-year cycle, Ige noted that government spending would grow over the next two fiscal years due primarily to nondiscretionary spending requirements such as health benefits and raises negotiated by the previous administration.

To him, that means one thing: The state will have to live within its means.

"I think the reality is that we are spending more money than we are projected to take in, so that's the fiscal reality that I have to live with," Ige said in an interview Friday. "We will be doing that in this current fiscal year and next fiscal year and fiscal year after that, regardless of what we do....

So far, Ige has been meticulous and thorough in his decision-making process to the point that he has faced criticism from some inside the Capitol that he has taken too long to name his Cabinet.

Ige last week named three more department heads, but he has not yet named his attorney general....

To date, he has emphasized tax modernization and updating the state's tax collection systems as a key change he expects to implement during his time in office. He described the current systems as "antiquated" and said having better information on who owes what will enable the state to collect money that may be falling through the cracks or going unreported.

"Part of it is people are willing to take more chances," Ige said. "People are more careful if they know that they are being audited or subject to audit or that somebody's watching.

"We only have so much in resources in terms of tax auditors and those types (of workers), so the better information system we have, the more we'll be able to examine — on a systemic basis — every single return, and the better we can do our job of ensuring that people are paying the taxes that are owed."

Ige has already said he does not expect to introduce any broad-based tax increases — although he also didn't rule it out, should circumstances warrant — saying that modernization of the state's tax system could result in a windfall of its own.

"I really do believe that we are losing hundreds of millions of dollars," he said, "because people are not fully claiming the income that they earn and therefore not paying the full tax take."

PR: Cabinet selecting

read ... One-on-one with the Governor

UH special funds due for overhaul

SA: Money from special funds is supposed to be spent only for specific, stated purposes, and the funds are supposed to be self-sustaining — clearly not the case at UH, where the perennially in-the-red special fund for Manoa athletics was among those cited as failures....

The proliferation of special funds in general is a major concern because their deposits and expenditures are not scrutinized as heavily as the general fund by the Legislature.

Accurate and complete reporting and accounting of all such funds, whether maintained by UH or other agencies and departments, is essential to make best use of taxpayers' money. This is especially true as special, revolving and other types of non-general funds have grown to collectively comprise roughly half of the state's operating budget.

The situation is even more serious for the University of Hawaii specifically, as its leaders approach the upcoming legislative session seeking a major infusion from the state's general fund amid the audit's assertion that UH has not properly reported all the special funding it already receives.

The audit reviewed 65 UH special funds, revolving funds, trust funds and trust accounts, which collectively had year-end balances of at least $266 million in the past five fiscal years. It found that 17 of the funds — or 26 percent — should be repealed or reclassified, because they do not meet basic legislative criteria, such as being self-sustaining, meeting their original purpose, or demonstrating a clear link between the program and the source of funding....

Of the 17 funds faulted, the University of Hawaii at Manoa Intercollegiate Athletics Special Fund is arguably the highest profile.

The audit recommended it be repealed because it has reported deficit balances since fiscal year 2002 and therefore does not meet the requirement that a special fund be self-sustaining. The fund, which helps pay for sports at UH-Manoa, derives revenue from ticket sales, concessions, television and radio broadcasting rights, and corporate sponsorships.

In response to the audit overall, UH President David Lassner agreed with most of the recommendations and observations, but differed on several key points, including the recommendation to repeal the athletics special fund.

Lassner emphasized UH sports' value to the broader community and welcomed the Legislature's "participation, insight and assistance in addressing the financial sustainability of this program …"

Background: Auditor: 26% of UH Special Funds out of Compliance

read ... UH special funds due for overhaul

Waikiki Beach Erosion Latest Excuse for Tax Hikes

SA: Beach erosion in Wai­kiki has been a problem for decades and has resulted in at least 10 sand replenishment projects since 1939. According to DLNR, 300,000 cubic yards of sand has been placed onto Wai­kiki Beach over the past 77 years.

DLNR spokeswoman Debo­rah Ward said the state is working with the city to study the recent erosion along Wai­kiki Beach and come up with possible solutions. Hono­lulu City Council members Ikaika Anderson, Stanley Chang and Ernie Martin have also proposed the creation of a nonprofit Wai­kiki improvement district under Bill 82, which would raise funds for restoration efforts.

The bill passed first reading in December and was referred to the Zoning and Planning Committee for further debate.

read ... Erosion of Income

Mother seeks more oversight on dental safety a year after Finley Boyle's death

HNN: New rules regarding dentists and sedatives were put into place shortly after Finley's death, But Ashley has started a web site, finleys-law.org. She's pushing for a law allowing parents to be in the treatment room with their children during dental procedures, or at least to have a window available so they can observe. She also wants a law that says any drug must be administered by the dentist or an equally-certified staff member.

Boyle's family reached a settlement the insurance company for Finley's dentist, Dr. Lilly Geyer. However, Boyle wants Geyer to face criminal charges in her daughter's death.

"She needs to be held accountable for what she did," she said. "And a slap on the wrist and an insurance settlement is not justice. That's not what I'm looking for. I would give all the money back in a heartbeat."

Geyer voluntarily shut down Island Dentistry and remains under state investigation, but no charges have yet been filed.

KHON: Memorial held for toddler who died after dental procedure

read ... Dental Safety

Pedestrian Run Over by Kauai Police

KGI: A pedestrian who was struck by a vehicle, then struck again by the police officer responding to the accident, died Saturday night.

Police dispatch received a call at 9:33 p.m. Saturday reporting that an eastbound sedan struck a pedestrian on Kaumualii Highway just east of the Kaumakani Post Office. A Kauai Police Department officer traveling eastbound apparently struck the victim a second time while responding to the incident, according to a county release.

read ... Man dies after being hit by KPD

DLNR Bungling Shuts Down Dive Tour Operators Unnecessarily 

HNN: Aloha Kauai Tours has been around since 1990. On Christmas Eve, in the middle of a snorkeling tour, Department of Land and Natural Resources enforcement officers paid them a visit.

"They basically came down to the dive site and told us to get out of the water," said president of the company Mike Hopkins.

Hopkins said he had to give his customers back their money and stop operations during one of the busiest times of the year.

"So we were shut down all over the Christmas weekend. We turned away $10,000 worth of business," Hopkins said.

Aloha Kauai Tours has since got its permit. But owner of SNUBA Tours of Kauai, Kevin Cram, says his luck hasn't been as successful.

"Frustration level was a little high…we were trying to get all the requirements to do so, and unfortunately as we met with some of the county and state people to try to obtain the permits, they knew nothing of it and they weren't even sure who to direct us to," said Cram.

Cram said he's been turning people away since the middle of October while trying to figure it out. And just this past week, he got an email from the department's Division of Boating and Ocean Recreation Kauai District Manager saying he would be allowed to operate without a permit until March 1st after all.

read ... DLNR Bungling

Another Welfare Cheat Busted

SA: Edelmira Salayes Araiza of Kihei was accused of collecting nearly $30,000 in welfare benefits while also receiving income from her grocery clerk job, cleaning business and rental unit.

The Maui News reports Araiza also was ordered to perform 200 hours of community service as part of the sentence imposed Friday.

read ... Welfare Cheat

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