Showing posts with label finance. Show all posts
Showing posts with label finance. Show all posts

Wednesday, April 15, 2009

'Tea parties' target taxes


HILO -- Bearing signs saying, “Spread my work ethic, not my wealth,” “Stop the Spending,” and I.O.USA,” taxpayers rallied in seven Hawaii cities today to voice their displeasure over pending tax hikes.

It was part of a national “tea party” day in more than 300 U.S. cities in protest of the annual income tax deadline. Thousands participated across the county.

Hawaii’s rallies were organized by the Grassroot Institute of Hawaii, The Hawaii Republican Assembly, Studio Ryan, Mac Mouse, Admor HVAC and Joe the Builder Inc.

"The more Hawaii's taxpayers find out about what's going on in their government, the angrier they get and the more they want to get involved. That's why projects like the Hawaii Pork Report, HawaiiVotes.org and events like this are so vital," said Grassroot Institute President Jamie Story. "Government officials should know that we are watching and educating the community about what they are doing with our money."

Hawaii is among the highest taxed states in the nation and ranks near the bottom in economic freedom, according to recent national rankings.

"While taxpayers adjust their budgets just to put food on the table, the Hawaii State Legislature is raising fees for everything and is even planning a rise in the general excise tax,” said Paul E. Smith, President of the Hawaii Republican Assembly, which is helping to organize the event. “On top of all that, they increased their own pay by 36 percent! Voters should understand; without a great showing at the 2009 Tea Party, Hawaii voters will continue as economic serfs to the tax-and-spend politicians who control our government."

State lawmakers, however, say raising taxes is probably unavoidable this year in light of an almost $2 billion revenue shortfall.

“Raising taxes must also be part of the solution, and raising the personal income tax on the wealthiest of our society seems to be the best option overall,” said House Finance Chairman Marcus Oshiro, D-Wahiawa, in a statement.

“As we consider all the options available to use, it's important for Hawaii residents to keep an open mind,” Oshiro said. “Taxes are not inherently evil. A tax system allows government to plan for and provide the infrastructure and the services needed for our society to function. That tax system, however, should not only be fair and efficient, but structured in a way that promotes healthy economic growth.”

Wednesday, March 11, 2009

House budget has deep cuts, layoffs

HONOLULU – State government is going to make do with a whole lot less, under steep budget cuts passed today by the House Finance Committee.

The committee unanimously passed a budget that goes two-thirds of the way toward making up a $1.8 billion shortfall over the biennium that starts July 1. Tax and fee increases are expected to make up the remaining one-third.

The budget situation could become even more dire tomorrow, if the Council on Revenues, as expected, forecasts a 6-percent revenue slump instead of the 3-percent that’s the basis of the current budget plan.

The budget, HB 200, cuts 374 positions, primarily employees in three programs lawmakers see as duplicative – the Disability and Communications Board, the Planning and Development Agency in the Department of Health, and the Career Kokua Program in the Department of Labor and Industrial Relations. Public affairs offices will also be hard hit.

“I will not sugar coat it or dumb down the reality of what we face,” said House Finance Chairman Marcus Oshiro, D-Wahiawa. “Drastic steps mirror a drastic situation.”

Democratic committee members, meanwhile, took advantage of the opportunity to blast Republican Gov. Linda Lingle for unilaterally saying there would not be tax increases or layoffs to deal with the sour economy.

The House budget cuts $235 million from Lingle’s $11.1 billion proposal for fiscal year 2010 and $170 million from her $11.3 billion proposal for 2011.

Lingle had promised communication, Oshiro said, yet he was blindsided by press releasees and public comments the governor made without discussing it with the Legislature first.

Committee members agreed that nothing should be taken off the table during these tough times.

“The fact of the matter, we’re chasing a $1.8 billion shortfall,” said Rep. Sharon Har, D-Royal Kunia, Makakilo, Kapolei.

Rep. Gene Ward, R-Kalama Valley, Queen’s Gate, Hawaii Kai, rushed to the governor’s defense. Communication has to be a two-way street, he said. And the Finance
Committee hasn’t been telling the governor what it’s been up to either.

Ward added that the budget situation looks grim, but it’s not as bad as it was in the 1990s, when the state had to dip deeply into its reserves to keep the state running.

“We’re going a little bit overboard too quickly,” Ward said, adding however, “everything we say today is moot until we see what the Council on Revenues does tomorrow.”

Wednesday, January 21, 2009

The $1.8 billion question


A morning of festivities, food and laughter today masked a darker reality that became clear by mid-
afternoon – the economy is in a world of hurt, and state government is grappling to find a solution.

Even the festivities at the opening day of the 25th Legislature were on the cheap – student performers from area elementary, middle and high schools replaced the professionals that have entertained on the House floor in previous years. After all the hoopla, a joint House-Senate money committee grilled administration budget chiefs on how the state can work itself out of an anticipated $1.8 billion hole by 2011.

Speeches by House and Senate officers and majority and minority leaders stressed bipartisan cooperation. House Speaker Calvin Say called the $1.8 billion shortfall over three years the worst budget crisis he’s seen in his 32 years in the Legislature.

“We must make up this shortfall, and this will be our major challenge,” Say, D-St. Louis Heights, Palolo Valley, said. “Everybody has to be part of the solution.”

Senate President Colleen Hanabusa, D-Nanakuli, Makaha, hit many of the same notes in her speech.

“These are the times when we must say what we can do and what we will do,” Hanabusa said. “These are the times when we can no longer afford partisanship or politics as usual. Times when our obligation is to bring the service, vision, and leadership we were elected to provide. Times when we stop looking for political points and start looking for the solutions.”

The Republican minority pushed for togetherness as well. It was the Republican leader of House, not the Democratic one, who drew applause by congratulating Hawaii-born President Barack Obama on his inauguration the day before. House Minority Leader Lynn Finnegan, R-Lower Pearlridge,

Aiea, Halawa, went on to liken cooperation in government to the plantation creation of saimen, made when Chinese, Japanese, Filipinos and Portuguese workers threw their contributions into a massive stewpot to make enough food for a crowd.

“People of Hawaii, the future is now,” Finnegan said. “Tough times are here, but if we are committed to working together, we will forge a better tomorrow.”

Finnegan’s food analogy was carried into her office, where, like the other legislators, she threw the doors open to serve food to constituents. In Finnegan’s case, saimen was on the menu.