Lingle held in effigy as Hawaiians converge

WAIKIKI – They have their differences among themselves, but all were united in their anger toward Hawaii Gov. Linda Lingle.

Thousands of Hawaiians and “Hawaiians at heart” marched in the streets of Waikiki today and converged in Kapiolani Park to commemorate the 116th anniversary of the overthrow of the Kingdom of Hawaii.

Even though a century has passed since U.S. forces came to the aid of a Hawaii provisional government and forced Queen Liliuokalani to abdicate her throne – and 50 years has passed since statehood – disputes between the Native Hawaiians and the state government are, if anything, becoming even more inflamed.

At most immediate issue is the Lingle administration’s appeal to the U.S. Supreme Court of a Hawaii Supreme Court opinion that placed a moratorium on the state selling ceded lands until an agreement could be worked out between the state and the Native Hawaiian people. That case is scheduled to be heard in Washington D.C. on Feb. 25.

Ceded lands are lands once owned by the Hawaiian monarchy but ceded to the state to be held in trust for Hawaiians. Ceded lands comprise 1.2 million acres of land on all Hawaiian islands - about 29 percent of the total land mass of the state.

Protesters carried a huge effigy of Lingle, along with signs saying “Lingle thou shalt not steal,” “Return stolen ceded lands” and “America get your ass out of Hawaii.”

Lingle could not be reached for comment today, a Saturday, but she has defended her administration’s actions in the past.

“Anyone who characterizes our taking this case to the United States Supreme Court as somehow being against Hawaiian rights is simply misrepresenting our position on the situation,” Lingle said in a Nov. 24 news conference defending the state’s stance. “The issue involving the ceded lands is an important one for the state because it affects all the people, the Native Hawaiians and non Native Hawaiians.”

Library of inauguration speeches now online

In anticipation of the inaug-uration Tuesday of Hawaii-born President-elect Barack Obama, hulu has put up clips of inaugural speeches from McKinley forward.

Mayors want more

HONOLULU – Hawaii’s four mayors knew better than to pass the hat around the Capitol this year, but they still had plenty of other requests during a joint session today of the House Finance Committee and Senate Ways and Means Committee.

The money committees also heard more details about the dismal economic forecast from members of the Hawaii Council on Revenues,. The council last week settled on a prediction of a 3-percent drop in revenues for the 2009 fiscal year ending June 30 and a one-percent increase for FY10, starting July 1. That’s about $125 million less to spend in 2009 and about the same the following year over the past spending pattern.

The numerous charts were bright, but their message certainly wasn’t.

Instead of a lot of money, the mayors of Hawaii, Kauai, Maui and the City and County of Honolulu are seeking changes to current statutes to allow them to do their jobs easier. The mayors several years ago formed the Hawaii Council of Mayors to present more of a unified message to the Legislature.

This year, the Council of Mayors endorsed seven priorities:

• Making permanent the government liability laws enacted in 2007 – the “Sacred Falls law,” to keep public lands open by lowering the risk of lawsuits.

• Representation on the boards of the Employer-Union Health Benefits Trust Fund and the Employees’ Retirement System.

• Exclusion of teachers from the counties' contributions to the ERS.
  

• Clarifying when a county will provide legal representation to a police officer

• Help preventing homelessness

• Protecting and encouraging farming.

• Stimulating the economy

The Hawaii State Association of Counties, a nonprofit group formed by the county councils of the four counties, identified four priorities:

• Extending the 45-day window for a legislative body to approve, approve with modification, or disapprove an affordable housing project to 90 days.

• Exempting local governments from state procurement laws and give local governments discretion to use cooperative contracts.

• Allowing counties to conduct criminal background checks on taxi drivers and applicants for taxi driver’s certificates.

• Requiring the state to transfer a portion of the fines and forfeitures collected for uncontested traffic infractions to the county in which the violations occurred.

Substitute teachers seek pay parity

More than five years after suing the state to get better pay for substitute teachers, attorneys will press their case for back pay, this time to the Intermediate Court of Appeals.

Three judges of the court -- Corrine Watanabe, Daniel Foley and Katherine Leonard -- will hear oral arguments at 9 a.m. Wednesday at the Supreme Court courtroom in Aliiolani Hale.

Paul Alston, an attorney representing the substitute teachers seeking more than $25 million in back pay, is fighting for retroactive raises after Circuit Judge Karen Ahn ruled in 2006 that the state Department of Education failed to comply with a 1996 law requiring it to pay substitutes the same daily rate as fulltime teachers.

The Legislature last year passed, and Gov. Linda Lingle signed, a bill that requires the DOE to give substitute teachers the same across-the-board raises that regular teachers, under collective bargaining, get each year. Now it’s just the back pay that’s at issue.

Among other things, the Circuit Court ruled that the state is liable to the substitute teachers for some but not all of the back pay sought by the teachers but doesn’t have to pay interest. The state is liable for contract claims, but is immune from direct claims under sovereign immunity, according to the court.

But the Circuit Court also refused to expand the rights to part-time employees, sparking an appeal. Attorneys for the substitute teachers also appealed rulings on statutes of limitations, tolling, sovereign immunity, pre-judgment interest, class certification and intervention. The state challenges the circuit court's orders allowing a third amended complaint, finding a waiver of sovereign immunity.

State budget down $125 million

The Hawaii Council on Revenues today confirmed some lawmakers’ worst fears – there’s about $125 million less to spend than they thought for the budget year that's already halfway over.

The $125 million must be cut from the FY 2009 budget that ends June 30. Forecasters hope the economy will turn around in time for a 1-percent increase in the FY 2010 budget, but they aren't making any promises.

The projected 3-percent decrease in state revenues for the current FY09 budget is a drastic drop from the 0.5-percent decrease forecast just a few months ago. A percentage point equals about $35 million in revenues.

The cuts are going to be painful, hitting those who need help most. Education and entitlement programs such as those administered by the Department of Health and Department of Human Services account for a whopping 78.4 percent of the state operating budget.

Council on Revenues Chairman Paul Brewbaker will brief legislative money committees on the details of the budget downturn at 2 p.m. Tuesday in the Capitol auditorium. The Council reports its latest revenue forecast to the governor and the Legislature on June 1, Sept. 10, Jan. 10, and March 15 of each year.

Governor Linda Lingle wasn't surprised by the news.

"The Council on Revenues’ decision to lower projections is not unexpected given national and global economic conditions, as well as other external factors beyond our control that are impacting Hawaii," Lingle said in a statement. "The lower revenue projections reflect the challenges we will face as a state in the next couple of years, and underscore the need for all of us to work together. "

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.”

(This article was edited 1/13/09 for clarification following new information).

Time to comment on the Superferry

The clock has started ticking on public comments about the environ-
mental impact of the Superferry. The state Department of Transportation today issued its Environmental Impact Statement, which found some negative impacts, but also suggested ways to mitigate them.

Comment period ends Feb. 23. Written comments should be snail-mailed or faxed to:

Katherine Kealoha, Director,
Office of Environmental Quality Control,
235 S. Beretania St., Suite 702,
Honolulu , HI 96813,
fax 808-586-4186;

and

Michael D. Formby, Deputy Director,
Department of Transportation Harbors Division,
79 S. Nimitz Highway, Honolulu, HI 96813,
fax 808-587-3652.

A Superferry spokesman said in a statement this afternoon that the company will continue to work to make its ship safe.

"The draft EIS combined with the data from over nine months of reliable service and 708 voyages provides a clear picture of our commitment to responsible operations and Environmental awareness. We remain committed to working with the state to address impacts raised by the draft EIS," the statement says.

Meanwhile the Hawaii Supreme Court is expected to rule soon on whether the EIS is enough: See a previous allhawaii.news report.

Putting a price tag on the Akaka Bill

Passage of the Akaka Bill could cost the state of Hawaii as much as $689.7 million annually in lost revenues, according to a study being released Thursday by the Grassroot Institute, which opposes the measure.

The Native Hawaiian Government Reorganization Act of 2007 (S.310 and H.R.505) in the 110th Congress, also known as the Akaka Bill after sponsor Sen. Daniel Akaka, D-Hawaii, proposes to create a sovereign Native Hawaiian Governing Entity within the state of Hawaii. The bill stands its greatest chance yet of passage thanks to a Democratic majority in Congress and President-elect Barack Obama’s support.

A Grassroots Institute spokesman said this is the first study on the economic impacts of the proposed bill, which is expected to be re-introduced in the new session of Congress. It was co-authored by the Beacon Hill Institute.

"The Economic Impact of the Akaka Bill: Unintended Consequences for Hawaii is a straightforward look at how passage of the bill would hurt Hawaii business while pitting neighbor against neighbor," said Grassroot Institute President Jamie Story in a statement. "Regardless of one’s feelings about the Akaka Bill and its benefits or shortcomings, it is vital to examine the economic impact of the bill on Hawaii’s people. This study demonstrates the irreversible economic damage the Akaka Bill would do to Hawaii, and we hope Washington DC officials will take this into consideration.”

The group plans a news conference at 10:30 a.m. Thursday in front of the Queen Liliuokalani statue near the Capitol.

Lost revenues could come from the transfer of land to a Native Hawaiian governing group, taking land out of the state’s tax base, as well as the loss of excise and income taxes and land lease revenues, according to the study

Questions about the fiscal impact of the Akaka Bill surfaced Tuesday in a joint meeting of the state House Finance Committee and Senate Ways and Means Committee. The money committees were being briefed on the proposed $40 million operating budget of the Office of Hawaiian Affairs when Rep. Gene Ward, R-Hawaii Kai, asked about the fiscal impact if the bill passes.

OHA Administrator Clyde Namuo said a cost can’t be affixed to the bill, because the bill allows for many different scenarios.

The highest cost would come about if Native Hawaiians decided to set up reservations as a method of self-governance, where they would have their own government, including criminal and civil laws and the infrastructure to deal with it.

“It’s permitted in the bill, but if you ask me, do I think the Hawaiian people would want that, that is not my sense,” Namuo told the committees. “A system similar to Native Indian reservations is possible … I don’t think people would want that … but the bill allows that discussion to occur.”

Everything old is new again

HONOLULU -- The Nature Conservancy of Hawaii rang in the New Year with a new state-of-the-art photovoltaic system that allows the nonprofit to generate clean energy and reduce its carbon emissions.

The powerful 12.6 kilowatt PV system was just installed atop the rooftop of the Conservancy’s downtown Honolulu office. Hawaii Energy Connection engineered and supervised the project in collaboration with Siu’s

Electric, the firm’s commercial installation partner.

“We are thrilled that these panels are helping us to reduce our use of petroleum-based fuel,” Suzanne Case, the Conservancy’s Hawaii executive director, said in a statement. “With our conservation mission, it’s imperative that we do our part and walk the talk.”

The Conservancy’s high-performance photovoltaic system is typically valued at more than $100,000. In a Power Purchase Agreement structured by Hawaii Energy Connection, the cost of the system was capitalized up front by a private investor and will be paid over time by the Conservancy as the user. The group will buy the power generated by the renewable energy system at a reduced rate below current utility pricing. The agreement structures the tax incentive provided by the state and federal governments to encourage users to install photovoltaic systems, to enable the investor to take the tax credit and thereby reduce the cost to the non-profit which otherwise could not use the tax credit.

The Conservancy purchased the Wing Wo Tai Building with its graceful gray stone facade on Nuuanu Avenue in 2005 to house its Honolulu office. Originally built in 1877 and rebuilt in 1916, the wood and stone structure survived the Great Fire of Honolulu in 1900 and now demonstrates how even historic buildings can be adapted to meet 21st century needs.

By late 2009, the Conservancy’s Molokai office will be outfitted with a similar system that will fully power the building — taking it totally off the grid.

“We are just doing what we can to tackle the global climate problem on a local level,” Case said. “By taking steps to shrink our own carbon footprint, we can be part of the solution.”

Grim budget news, times 10

Gov. Linda Lingle has proposed a budget that assumes the economy will dip only half a percentage point during the fiscal year that ends June 30. But lawmakers said Monday they’re expecting revenue losses to be 10 times that.

The House Finance and Senate Ways and Means committees held a combined informational session where the Republican governor’s budget director, Georgina Kawamura, briefed them on the Administration’s 2009-2011 spending plan. Briefings on specific departments continue through the week.

But the Council on Revenues, when it meets Friday, could render the current spending plans obsolete. Tax collections have been down 2.6 percent during the first five months of the fiscal year, and the year could end up down 5 percent over the previous year.

That would be $225 million less on a roughly $11 billion budget, compared with the $22.5 million the governor was working with.

If so, an administration spending plan that already cuts 14 percent of discretionary spending could be forced to slice deeper – much deeper.

Democratic majority lawmakers, as expected, had plenty of questions.

But several of them focused on Lingle’s restructuring of the state’s bonds to push about $300 million in annual debt payments eight years into the future, when she will no longer be in office.

“To me, it’s somewhat misleading,” said Senate Majority Leader Gary Hooser, D-Kauii, Niihau. “We’re just extending our debt.”

“We’re deferring it; we’re not saving it,” said Senate Ways and Means Committee Chairwoman Donna Mercado Kim. “We’re leaving it to the future to pay it … So it’s not a true savings.”

The Administration will do whatever is necessary to balance the budget, said Kawamura. It’s an ongoing process, she said.

“We cannot do it by cuts alone,” Kawamura said. “It is agony for us in regards to what we have to do every day to get a balanced fiscal plan.”

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.

Open arms, closed wallets

Hawaii residents may be welcoming president-
elect Barack Obama with open arms during his Oahu holiday stay, but they haven’t been opening their wallets to help pay for his inauguration.

An allhawaiinews.com analysis of the $21.9 million in $200-plus donations made for inauguration festivities show $9,000 from one contributor as the only donation from Hawaii.

And that sole Hawaii contributor is actually a Chicago resident. Kehaulani Lum, who has homes in both Aiea, Hawaii, and the Loop in Chicago, is an Obama Mama who made news in the Windy City by holding a pre-election workshop for 11- to 15-year-olds called “Kid Filmmakers for Obama.”

The four days of inauguration festivities beginning Jan. 18 are expected to cost taxpayers as much as $50 million for preparations and protection for the estimated 2.5 million people expected to show up in Washington D.C. for the historic event.

The Aloha State showed more generosity during the election itself. Hawaii’s 1.3 million residents account for 4.3 percent of the United States population, but the $3.1 million in contributions to the Obama-Biden ticket was 4.7 percent of the $656.6 million the campaign raked in.

Hawaiian protest peaceful

A couple dozen people waved signs in front of the Capitol and
Wash-
ington
Place
today, in the first of several pickets planned to protest the state’s plans to sell some of its ceded land.

The dispute has reached the U.S. Supreme Court, where it is scheduled for oral arguments Feb. 25.

Protesters next plan a Jan. 17 march down Waikiki to Kapiolani Park.

Mele Kalikimaka

Mele Kalikimaka

and

Happy Holidays

to You and Yours

Hawaiian land protesters hope to draw Obama's eye

Native Hawaiians in a land dispute with the state that has advanced to the U.S. Supreme Court plan a Dec. 26 rally at the state Capitol to try to draw President-elect Barack Obama’s attention to their battle. Obama is currently vacationing on Oahu.

The rally is set for 10 a.m. to 4 p.m. on the Beretania Street side of the Capitol, fronting Washington Place. Organizer Vicky Takamine said in an email the rally is “to bring awareness to (Gov. Linda) Lingle's immoral claim that the state has the right to sell and/or transfer Hawaiian ceded lands … We're hoping to draw media attention while Obama is here for his vacation and urge him not to meet with her.”

The case centers on ceded lands - lands once owned by the Hawaiian monarchy but ceded to the state to be held in trust for Hawaiians. The Hawaii Supreme Court in January froze the land, which includes Maui lands as well as Laiopua on the Big Island, until Native Hawaiian claims can be settled.

Lingle, through her Attorney General Mark Bennett, appealed the decision and the U.S. Supreme Court has agreed to hear oral arguments Feb. 25. The Office of Hawaiian Affairs, the respondent in the case, has until Jan. 21 to file its brief.

“Anyone who characterizes our taking this case to the United States Supreme Court as somehow being against Hawaiian rights is simply misrepresenting our position on the situation,” Lingle said in a Nov. 24 news conference defending the state’s stance. “The issue involving the ceded lands is an important one for the state because it affects all the people, the Native Hawaiians and non Native Hawaiians.”

Jon Van Dyke, an attorney representing Native Hawaiians in the case and author of the book, “Who Owns the Crown Lands of Hawaii?” said cultural differences contributed to the misunderstandings between Native Hawaiians and the people who moved to the islands later. Van Dyke was addressing the annual convention of the Council for Native Hawaiian Advancement and its 91 Native Hawaiian member organizations the day the U.S. Supreme Court announced it would take the case.

“Hawaiians have a very different way at looking at the world than the Westerners who ultimately came,” Van Dyke said. “Aina (land) was not a commodity to be bought and sold, but rather it was something to be nurtured.”

Ceded lands comprise 1.2 million acres of land on all Hawaiian islands - about 29 percent of the total land mass of the state.

“There's no question that Hawaiians have strong claims to vast amounts of land,” Van Dyke said. “There's no question in my mind that Native Hawaiians are entitled to land.”

Native Hawaiian groups point to the Apology Resolution enacted by Congress in 1993, on the 100th anniversary of the Hawaiian monarchy, as placing a cloud on the title to ceded lands, forcing the state government to hold them intact until questions of Native Hawaiian self-governance can be answered. Last January, the Hawaii Supreme Court upheld that view.

The state disagrees.

“These public trust lands were transferred by the Congress to the people of the state of Hawaii in 1959 for the benefit of all the people of the state of Hawaii to be used for the public purposes set out in the Admission Act like for the establishment of public schools and public improvements for betterment of homes and farms,” Bennett said during the Nov. 24 news conference. “The Admission Act explicitly gave the state the right to sell or transfer ceded lands for the purposes set out in the Admission Act.”

Water Heaters for Christmas

HONOLULU -- Ten Oahu families were awarded free solar water heater systems today after they won a drawing sponsored by Blue Planet and Suntech Hawaii.

The families were randomly selected from a list of people who signed up to be a “friend” of Blue Planet Foundation, a nonprofit created to change the world's energy culture by raising global awareness and developing practical programs to implement clean, efficient and renewable energy. Suntech Hawaii, founded in 2004, is a renewable energy company specializing in solar photovoltaic and hot water systems.

The 10 solar water heaters—to be installed in the first months of 2009—will save approximately 500 barrels of oil over the life of the system. At today’s electricity prices, they will also save the homeowners about $150,000 collectively over the next 15 years, a spokesman said.

“A solar water heater is one of the easiest and most cost effective ways to reduce the use of fossil fuels and start saving money,” said Julie Rogers, Director of Community Relations for the Blue Planet Foundation, in a statement. “We want to provide an opportunity for people to get involved in Hawaii’s clean energy movement.”

Blue Planet and Suntech Hawaii are able to deliver solar hot water systems system at no out-of-pocket cost to the homeowners because of the state and federal tax incentives supporting adoption of solar energy. The two organizations have agreed to jointly cover the full after-tax/after-rebate cost of the systems.

Lingle presents slimmed-down budget

HONOLULU – Salaries will be frozen and Healthy Start prenatal health care and adult dental care programs abolished, but no state employee would be laid off under a reduced spending plan unveiled today by Gov. Linda Lingle.

The $11.1 billion FY 10 and $11.3 billion FY 11 operating budgets are a 3.8-percent and 3.3-percent reduction, respectively, over the base budget. But Lingle said the numbers represent a 14-percent reduction in discretionary funding over the two-year period.

Lingle also plans to tap into special funds – taking $36 million from the Deposit Beverage Container Special Fund, $9 million from the Wireless Enhanced 911 Special Fund and $40 million from the Emergency and Budget Reserve Fund – in order to balance the budget. The Legislature must agree to emergency appropriation bills in order for her to tap into those sources.

Lingle said she’d met with legislative leaders earlier in the day to present her budget proposal. The Legislature will use the budget as a base for its own deliberations, but doesn’t have to give the governor everything she wants.

“The world has changed and our fiscal situation has changed dramatically. That means it simply cannot be business as usual,” Lingle said during a news conference to announce her proposed budget.

“I believe that we will emerge stronger than we are now,” Lingle added, saying that the grim fiscal picture offers “great incentive to work together” with the Legislature in a collaborative fashion.

Lingle’s proposed cuts are in addition to cuts of $40 million proposed by the Department of Education and $13 million by the University of Hawaii System. Those two departments, combined with Department of Health and Department of Human Services, account for a whopping 78.4 percent of the state operating budget.

In addition to cutting spending and tapping into special funds, Lingle said the state would increase revenues by refinancing debt and collecting more taxes. While there would be no tax increase, Lingle said the state could collect an additional $122 million by stricter enforcement of taxes on cash transactions and tightening Act 221 investment tax credits.

A fast-tracked $3 billion public works program will also stimulate the economy and contribute to a healthy budget, Lingle said.

Lingle proposes salary freezes

HONOLULU -- Gov. Linda Lingle plans to cut $4.1 million from the state budget by freezing top officials’ salaries for the next two years.

The salary freeze would affect 208 employees, including the governor, lieutenant governor, cabinet heads and deputies and justices of the Hawaii Supreme Court and all state court judges.

The administration employees are scheduled for salary hikes of 5 percent on July 1, 2009 and 3.5 percent on July 1, 2010. The justices and judges are scheduled for salary increases of 10 percent in 2009 and 3.5 percent in 2010.

Lingle will propose a bill in the 2009 legislative session to accomplish the salary freezes. The bill covers the positions recommended for increases in 2007 by the Commission on Salaries. The increases will go into effect automatically unless the Legislature takes action.

The bill also would suspend a 3.5-percent increase scheduled for all 76 state legislators for January 1, 2010. Additionally, Lingle is asking the Legislature to forgo the 36 percent ($12,808) salary increases lawmakers are scheduled to receive on Jan. 1, 2009. This would save an additional $486,704 in fiscal year 2009.

“…It is important that state leaders also make sacrifices and lead by example,” Lingle said in a statement. “At a time when many Hawaii residents are losing their jobs or seeing their salaries frozen or reduced, it would be inappropriate for state leaders to accept pay raises.”

Superferry: No Special Treatment

The Legislature didn’t craft a law specifically to bail out Hawaii Superferry after a court ruling last year temporarily grounded it, the Attorney General’s Office told a skeptical state Supreme Court today.

The five-member court took the matter under advisement, not saying when a ruling would be issued following about an hour of oral argument this morning.

At issue is Act 2, passed by the Legislature after an August 2007 Supreme Court ruling that required an environmental assessment before the Superferry could continue its interisland transport. Once the law was signed by Gov. Linda Lingle, a lower court vacated the Supreme Court’s injunction and the Superferry recommenced operations.

If the law was written strictly to benefit a “closed class,” it would be an unconstitutional abuse of legislative powers, said Isaac Hall, attorney for the Sierra Club, one of three groups filing the lawsuit. Hall contends the law was “conceived, cut and tailored” for the Superferry.

“The Superferry at that point could have appealed to the highest court … instead they appealed and we use that a little loosely, to the Legislature … They could have appealed to you; instead they appealed to the Legislature,” Hall said. “You as the highest court determined we were entitled to an (environmental assessment), and the Legislature can’t take that away from us.”

But the state maintains that Act 2 wasn’t created to benefit a closed class, because the law could apply to other businesses besides the Superferry. In theory, other high-speed ferry transports could come to Hawaii and benefit from the law, said First Deputy Attorney General Lisa Ginoza.

“The appeal is addressing the Legislature’s ability to deal with the important issues of the day,” Ginoza said. “The Legislature speaks on behalf of all of the people of the state … It’s perfectly within their authority to do so.”

But court justices seemed to be having a hard time grasping the concept that Act 2, created in a special session so soon after their ruling, could have been created to benefit any entity besides the Superferry.

“All other businesses have to comply with Act 343 (requiring an environmental assessment), correct?” asked Justice Paula A. Nakayama. “And how many business does Act 2 apply to?”

“Is there any entity that would fit that description except for Superferry?” asked Justice Simeon R. Acoba Jr.

Tough questions by the Supreme Court are just the latest the Hawaii Superferry has had to endure. A legislative auditor report issued yesterday said Act 2 undermines the state’s ability to protect the environment and could set a dangerous precedent.

Gimme Shelter

Gov. Linda Lingle, along with State Comptroller Russ Saito, who also serves as the state’s homeless solutions team leader, beginning at noon today will dedicate two new homeless transitional shelters on Oahu’s Leeward Coast.

The two facilities -- Kumuhonua (formerly Building 36), a former military building at Kalaeloa, and Ulu Ke Kukui (formerly Villages of Ma‘ili) in Ma‘ili -- are the final shelters to be developed under an emergency proclamation Lingle declared to address health and safety issues due to so many people living in parks and beaches along Oahu’s Leeward Coast.

The two shelters to be dedicated have the capacity for about 450 people, in addition to the more than 1,500 people Lingle says have been served in other transitional shelters since 2006.

The University of Hawaii last month released its “Homeless Service Utilization Report,” a study that attempts to get a handle on the breadth of the homelessness problem on the islands and how best to address it.

Affordable Housing on the Agenda

The House Committee on Housing was scheduled today to hear from a range of experts on the state’s housing problems. Hawaii is known as one of the most expensive states to live in, with its cost of living currently 8 percent higher than Los Angeles and 30.9 percent higher than Chicago, according to Move Inc.

That’s one reason the U.S. Census shows that only 56.5 percent of Hawaii residents own their own homes, compared to 66.2 percent nationwide. The 2000 median home value in Hawaii of $272,700 was more than twice the U.S. average of $119,600.

Among the experts invited to present housing data to the committee:

• Kathleen Hasegawa and Sherrilee Dadson, directors, Habitat for Humanity
• Karen Seddon, executive director, Hawaii Housing Finance and Development Corporation
• Jo-Ann Ridao, deputy director, Department of Housing and Human Concerns, Maui County
• Nani Medeiros, executive director, Housing Hawaii
• Chad Tanaguchi, director, Hawaii Housing Authority