Is another great year too much to ask?

by Keli'i Akina, Ph.D. President/CEO Grassroot Institute, January 4, 2025

Happy New Year!

We’re only a few days into 2025, and it is time for one of my favorite traditions — making a list of New Year’s resolutions for Hawaii policymakers.

Resolutions typically don’t stick for very long, but 2024 broke the mold. Last year at this time, I suggested that Hawaii’s lawmakers resolve to cut taxes and enact housing reform. And, miracle of miracles, that’s exactly what they did! 

They might not have enacted every reform I suggested, but still it was a fantastic start.

Since that was the equivalent of winning the Super Bowl as far as New Year’s resolutions go, I feel like I shouldn’t be too demanding for 2025. 

So my list this year is focused on maintaining our progress rather than introducing another Mount Everest to climb.

First, state and county policymakers should resolve to hold the line on taxes. 

That doesn’t mean just protecting the new income tax cut against any efforts to reduce it or roll it back. It also means not undermining the benefits of the tax cut by hiking taxes elsewhere.

So no more tax surcharges, tax increases or new tax classifications aimed at certain types of people.

My second resolution is related to the first: Reduce spending and practice smart budgeting. 

The only way to protect the tax cuts and continue to reduce Hawaii’s cost of living is for state spending to not exceed state revenues. If our government goes back to its past spending habits, we could quickly end up in a budget crisis that would threaten the future of last year’s historic tax cut. 

Gov. Josh Green introduced a budget that is intended to keep spending contained and allowthe state to afford the income tax cut. This is the path Hawaii needs to stay on in order to maintain a healthy fiscal outlook. We cannot afford big new projects or programs that might increase our state debt. Lawmakers should carefully examine new expenditures to ensure that we do not overspend.

Finally, lawmakers should continue to expand on last year’s housing reforms. The counties have put state-required reforms regarding accessory dwelling units and the adaptive reuse of commercial buildings into place, but much more can be done to boost housing stock in our state.

For example, expanding the scope of transit-oriented development could help create more affordable housing units. In addition, reforming the process by which the state and counties adopt new building codes could speed up homebuilding.

So there you have it — a modest but workable list of policy resolutions for 2025. 

If Hawaii lawmakers simply build on last year’s achievements, we will be in for another great year.
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This commentary was Keli‘i Akina’s weekly “President’s Corner” column for Jan. 4, 2024. If you would like to have his columns emailed to you on a regular basis, please call 808-864-1776 or email info@grassrootinstitute.org.