Hawaii: At risk for corruption? (commentary)

Earlier this year, All Hawaii News participated in a novel project -- creating a nationwide risk analysis for how susceptible state governments are to corruption. The collaborative project of the Center for Public Integrity, Global Integrity and Public Radio International called upon journalists, analysts and experts in every state to rate government agencies on hundreds of benchmarks.

Hawaii didn't do too badly, based on the laws on the books for public access, transparency and ethics. An overall score of 74 percent, a C, with a ranking of 10th among the states, puts the Aloha State squarely in the status quo of government accountability.

But where Hawaii really falls short is in the implementation of those good laws that are already on the books. Lawmakers are ready, even eager, to create commissions, boards and oversight panels.

Unfortunately, the paper tigers have no teeth. There's a lot of style, but no substance.

Public records are, in theory, open to the public, yet the Office of Information Practices, charged with enforcing the provisions, can't force state agencies to provide records.

The state insurance commissioner is supposed to regulate insurance rates, yet he has to beg the Legislature to allow him to do his job.

The appearance of conflicts of interest in the Legislature is rampant, with lawmakers allowed to vote on the very projects they lobby for.

Hawaii has been slow to adopt technology to allow for public oversight of campaign financing and lobbyists' and public officials' disclosures.

Ultimately, oversight of government falls to an already overburdened court system.

Hawaii government leaders can make use of this report in one of two ways. They can look at other states and feel satisfied that at least Hawaii isn't as bad as, say Georgia, which ranked dead last with 49 percent.

Or, they can take the report as a blueprint -- a way to focus on what needs fixing first. They can pinpoint specific areas to make state government more accessible, transparent and fair for all of the state's 1.4 million people. In other words, state leadership can be leaders.

Let's hope they do the latter.

National group to bring bad budget news

HONOLULU -- If misery loves company, Hawaii’s got plenty of both.

A new report by the National Conference of State Legislatures says the budget gap – the difference between what states have and what they need – has moved nationally from “sobering” to “distressing.”

NCSL Executive Director William Pound will bear the bad news personally to Hawaii on Thursday, when he’ll address the House Finance Committee.

Pound is expected to update the committee on current fiscal conditions, strategies being employed to meet budget shortfalls and whether states should expect much relief from the federal bailout, known as the American Recovery and Reinvestment Act, which is currently being negotiated in Congress.

Hawaii’s three-year budget shortfall is estimated at $1.8 billion, but even that intimidating figure could become more frightening. NCSL, in its interactive budget map, shows Hawaii’s FY 2009 budget gap at $353.3 million, or 5.8 percent of the state general fund.

Even though some states have taken corrective actions, the current FY 2009 gap still stands at $47.4 billion, on top of the $40.3 billion shortfall for the 2008 FY, according to NCSL, whose budget analysts are predicting it’s going to get worse before it gets better.

"These figures are absolutely alarming, both in their magnitude and in the painful decisions they present to state lawmakers," Corina Eckl, fiscal program director for NCSL, said in a statement. "The easy budget fixes are long gone, only hard and unpopular options remain.”

Lawmakers sharpening budget pencils

It’s never quite as simple as choosing between education, roads


or their own raises, but Hawaii lawmakers this year face one of those “can’t win for losing” types of legislative sessions.

Someone’s belt is going to pinch during these tough economic times, and budget shortfalls are bound to make for some testy sessions, especially with the prospect of lawmakers' own 36-percent raises looming.

The Hawaii Legislature kicks off the New Year with two weeks of budget briefings starting Monday. Gov. Linda Lingle has already presented her own slimmed-down budget that she says represents a 14-percent reduction in discretionary funding over the two-year period. Any early budgets, however, are sure to be further reduced when the state Council on Revenues meets Jan. 9.

Hawaii is certainly not alone, according to the National Conference of State Legislatures, which says only 12 states aren’t expecting budget shortfalls.

“These budget gaps are approaching those seen in the last recession, which were the worst since World War II, and show every sign of growing larger,” NCSL Executive Director William T. Pound said in a statement. "While the data we collected from state legislative fiscal officers are pretty sobering, our discussions with legislative leaders tell us that they expect the problem to only get worse.”

Hawaii officials, however, seem optimistic that public works projects can help keep the state’s economy afloat. Hawaii is one of a half-dozen states that are actually planning on increasing public works projects, according to stateline.org, while another half-dozen states are paring down their capital improvement projects because of financing problems or diminishing bond ratings.

President-elect Barack Obama’s proposed stimulus plan could send money to states to help keep state economies rolling. That makes the American Association of State Highway and Transportation Officials happy.

“President-elect Barrack Obama is pledging to put millions of Americans to work by building and repairing the nation's highways and bridges and a new survey of state ‘ready-to-go’ transportation projects is the road map he needs to make it happen," said Executive Director John Horsley in a statement.