Surprise! Another Cash Giveaway to HSTA Members -- $2,200 This Time
Legislature allows governor to act without restraint for another year
Maui, Kona Rental Car Rates Top $900/wk
March Visitor Arrivals Up 1.1%
Hawaii State Legislature Declares Climate Emergency
Will Supreme Court Consolidate Hawaii Gun Case with NY Case?
Locals Worry Wind and Solar Will Gobble Up Forests and Farms
Without Free Money from the Sky, Legislature Would have been Lost, Dazed and Confused
AP: … Hawaii’s lawmakers today wrapped up a legislative session marked by a generous influx of federal aid that helped the islands weather a pandemic that threw tens of thousands of people out of work and upended the state’s tourism-dependent economy.
Lawmakers began the session in January with the news that Congress had appropriated $1.6 billion to Hawaii as part of a coronavirus relief package. The House and Senate used nearly half of the federal funds to pay back $700 million the state borrowed from the federal government to pay unemployment insurance claims earlier in the pandemic. They appropriated $313 million to repay another loan the state took out to pay employee salaries when tax revenue tanked.
The federal money allowed Hawaii to avoid furloughing teachers and other state workers, and continue funding key social programs like HIV prevention, homeless services and sex abuse treatment….
“I think it’s really extraordinary to see how differently the legislative session has gone as a result of the federal congressional action that was taken,” said state Sen. Jarrett Keohokalole, chairman of the Senate Health Committee, at a news conference after the session.
Lawmakers hiked a rental car tax and gave authority to the counties to raise the transient accommodations tax as they attempted to have tourists shoulder more of the state’s tax burden.
“People are just going out to pay more. If they want to visit Hawaii, that’s going to be the bottom line,” House Speaker Scott Saiki said….
read … Hawaii lawmakers finish session after huge federal aid boost
Lawmakers pass bill that would cut Hawaii Tourism Authority funding by $19M
PBN: … A bill that will reduce funding for the Hawaii Tourism Authority passed final readings in the state Legislature this week.
State House and Senate legislators approved on Tuesday the latest version of House Bill 862 that would cut the agency’s budget from $79 million to $60 million. It would also decrease funding for the Hawaii Convention Center from $16 million to $11 million per year.
In a conference committee meeting last week, Rep. Sean Quinlan said that the bill will make “major transformational changes while still preserving the meat of what makes HTA, HTA.” He noted that the latest version of the bill would “be preserving the four pillars of HTA,” which include natural resources, Hawaiian culture, community and brand marketing.
The bill also eliminates the allocation of the state’s transient accommodations tax to the counties, moving that money to the state’s general fund instead. In lieu of that allocation, the bill gives individual counties the authority to implement their own tax of up to 3% on visitor lodging….
SA: Hawaii Tourism Authority continues to battle for survival as tourism challenges continue
KITV: We may see fewer tourists as a result of more fees and regulations to the visitor industry, if the Governor signs these legislative bills.
CB: Ige questions the need to reduce funding for the Hawaii Tourism Authority
read … Lawmakers pass bill that would cut Hawaii Tourism Authority funding by $19M
Maui Property Tax Rates Increasing
MN: … Under the proposal, hotels and resorts could see their current rate of $10.70 per $1,000 of net taxable assessed value jump to $11.75. Timeshares could see rates go from $14.40 to $14.60.
Short-term rentals that have assessed value less than $800,000 could see rates go from $11.08 to $11.11, while rentals in the second tier from $800,001 to $1.5 million would see a jump from $11.08 to $11.15 and those in the third tier worth $1.5 million and above would see an increase from $11.08 to $11.20.
Both Victorino and the budget committee, however, aim to lower tax rates for owner-occupied homes in the first tier of $800,000 and below, going from the current rate of $2.51 to $2.41. Both have also proposed a slightly lower rate for the second tier of owner-occupied homes worth $800,001 to $1.5 million, from the current tax rate of $2.56 to $2.51. While Victorino sought to keep rates flat for the third tier of owner-occupied homes over $1.5 million, the budget committee is seeking an increase from $2.61 to $2.71.
Rates for the most expensive homes not occupied by the owner would also go up under the budget committee proposal. While both Victorino and the committee are seeking to keep the current rates the same for the first two tiers of the non-owner-occupied category, Victorino proposed an increase from $6.90 to $7.50 for homes valued over $1.5 million and the committee upped it to $8.
Real property taxes are typically the largest source of income from the county. Victorino’s proposed rates would bring in $373.6 million, while the committee’s rates would net $383.2 million, about $9.6 million more, according to committee documents.
read … Homeowner taxes could be lower, hotel rates could go up
Universal Basic Income is Here Right Now
PBN: … I don’t see policymakers discussing this at all. Unemployment is at 9% in Hawaii, which should inspire lines of applicants for any job. But all we’ve been hearing from business owners for more than a month now is that they can’t fill the jobs they have. Roy Yamaguchi Restaurants this week even sent out an email to top customers that it’s hiring for all positions, something I’ve never seen in this market before.
This is holding businesses back from their own success, and holding Hawaii back from recovery.
It’s a nationwide problem. As Ty West, senior editor of our National Content Team, reported online this week, “According to a March survey by the National Federation for Independent Business, 42% of business owners reported job openings they couldn’t fill — a record high, and 20 percentage points higher than the 48-year historical average of 22%.”
State government is in a whirlpool of its own making, too. It has depleted its unemployment insurance fund but is still paying more unemployment than it needs to because the jobs are coming back.
What free money does to people
By the way, we’re getting an unintended lesson in what a Universal Basic Income would do to Hawaii. Progressives push UBI — basically social security on steroids in which the government sends money to everyone just for existing — supposedly to alleviate poverty and produce “equity.” In 2017, Hawaii was the first state in the nation to pass a resolution, introduced by state Rep. Chris Lee, promising to evaluate UBI.
OK. We’re evaluating it right now. Clearly thousands of people are getting unemployment money they don’t need, under our previous definition of what unemployment is for — temporary help in between jobs. The jobs are there, but people are making the rational economic decision that if they make enough from unemployment from the state for not working, why work?
A job that can’t be filled in this manner is a job destroyed by government fiat. A business hobbled by this can’t be successful or grow into something bigger. Consequently — politicians, pay attention to this part — such a business will pay less in taxes than it otherwise would.
So where will we get the money to keep paying people not to work?
I can’t help but notice that progressives are quick to promise “to each according to their needs.” They never get around to the first part of that toxic slogan: “From each according to their abilities.”
Paying the able as if they were disabled makes cripples of us all….
read … Hawaii businesses caught between rising unemployment premiums, labor shortage
Redevelopment bill awaits Ige’s signature
HTH: … A Hilo lease extension program could spread to the rest of the state under a bill currently before Gov. David Ige.
House Bill 499, which passed through the state Legislature and awaits the governor’s signature, would take the principles that formed the Kanoelehua Industrial Area Economic District in 2018 and apply them throughout the state
Under a program begun in 2018, lessees of public lands within the Kanoelehua Industrial Area are allowed to extend their leases — many of which were first established in the aftermath of the 1960 tsunami and expire soon — so long as they make improvements to their property.
HB 499 extends that premise statewide, allowing lessees of public lands used for commercial, industrial, resort, mixed-use or government properties — with the exception of the University of Hawaii — to have their leases extended if they develop and execute plans to make improvements to their properties….
Hilo Rep. Chris Todd, who co-introduced HB 499 and was one of the primary architects of the Kanoelehua Economic District, said the measure will benefit at least several dozen Hilo small businesses on state land that are not already within the Kanoelehua Industrial Area.
“This has been a problem for decades,” Todd said, explaining that business owners whose leases are expiring aren’t able to invest in their properties, which leads to dilapidation. “Eventually, you end up with situations like Uncle Billy’s (Hilo Bay Hotel), which just have to be torn down.”
Kohala Rep. David Tarnas, another co-introducer of the bill, said the Kanoelehua Economic District served as a test for HB 499, which has been in development in some form or another for more than a decade.
“This has statewide impact, but it all comes from Hilo,” Tarnas said, although he added that a number of Kauai businesses also are well-suited for the program.
The bill received widespread pushback during its journey through the Legislature this year, with some committee hearings eliciting hundreds of pages of negative testimony, largely from private citizens.
Much of the criticism echoed opposition by the Office of Hawaiian Affairs, which opposed the bill out of concerns that it could “result in the use of public lands by private entities for 105 years, without any rent opening for over a generation,” OHA wrote in a March statement.
read … Redevelopment bill co-introduced by Todd awaits Ige’s signature
Ritte Grifts for Vacant Senate Seat
CB: … On Thursday, supporters of longtime Native Hawaiian activist Walter Ritte said they would be submitting his name for consideration.
“Walter is one of the great kupuna (grifters) of the Hawaiian nation, and when a person of his capacity and experience decides to be part of something, it is very important that we listen,” said Sean Lester. (This is your brain on identity politics.) He’s the vice chair of Precinct 13-2 on Maui, in the Haiku area, and treasurer for District 13, which includes Hana, Molokai and Haiku.
Ritte acknowledged that he is interested in the gig.
“There are so many problems we have, which the pandemic has shined a light on,” he said. “We cannot act like the problems are going to disappear because we are getting vaccines.”
Among the legislative priorities for Ritte is food independence and giving Hawaiians a “much more serious voice” at the Legislature….
(If that’s true, why is he running?)
Also on Thursday, former Maui Democratic Party chair, environmentalist and entrepreneur Timothy Lara said he also intends to seek English’s seat….
HPR: The Conversation: State Sen. Kalani English Bids Aloha
read … Won’t get it
Honolulu prosecutor Steven Alm announces new oversight process for police shootings
SA: … Two separate teams of city prosecutors and investigators will independently review the fatal police officer involved shootings of 16-year-old Iremamber Sykap and 29-year-old Lindani Myeni as part of a new oversight process announced today by Honolulu Prosecuting Attorney Steven S. Alm.
Two teams with experience working in the state and federal criminal justice system will review the evidence turned over by the Honolulu Police Department, including body camera footage of the shootings. Prosecutors may interview or re-interview witnesses, collective evidence, and do whatever necessary to complete an independent review of HPD’s findings.
None of the evidence, including the body cam footage, will be made public by prosecutors as part of an effort not to taint a prospective jury pool, Alm said, and his office will not discuss any aspect of the inquiries prior to their conclusion….
SA: Prosecutor Steven S. Alm focuses on restoring public trust
CB: Honolulu Prosecutor Promises Independent Investigations Into Police Shootings
CB: Make Hawaii's Law Enforcement Review Board Permanent
read … Honolulu prosecutor Steven Alm announces new oversight process for police shootings
Hawaii Abortionists want Telemedicine Abortions for Guam
CN: … A federal court in Guam recommended that two doctors’ request to block a law requiring physicians or a “qualified person” to provide, in person, certain information to women seeking an abortion 24 hours before the procedure be denied. The doctors, who are Guam-licensed but live in Hawaii, wish to provide medication abortions through telemedicine ….
read … Telemedicine
Kauai Island-wide power outage
TGI: … KIUC said Thursday a full analysis of what happened will take several days to complete, but pointed the finger at their generators in a statement, saying: “KIUC’s grid was running at 100% renewable today, as it has routinely for thousands of hours since 2019. It appears that there may have been an issue related to one or more of our generating sources, which caused a trip and resulted in the island-wide outage.”…
read … Island-wide power outage
Corona Virus News:
QUICK HITS: