Economy among lawmaker priorities

By JASON ARMSTRONG

Tribune-Herald staff writer

Expediting Hawaii’s excruciatingly slow economic recovery will be a top priority for East Hawaii’s all-Democratic legislative delegation, which returns to work on Wednesday.

State lawmakers are aware they will start a new legislative session facing a lower-than-expected revenue projection, high unemployment and a poor-performing educational system.

“Anything to do with the economy, I’m going to be 100 percent behind it,” said Sen. Gil Kahele, D-Hilo, Puna, Ka’u, who will seek low-cost electricity and streamlined government regulations.

“Geothermal is foremost in my mind,” Kahele said.

He wants more geothermal development — Hawaii’s only geothermal power plant generates about 20 percent of Hawaii Island’s electricity — and has already discussed the topic with the leaders of both houses.

Geothermal energy could be used to move some of Hilo’s surplus rainwater to dry West Hawaii, Kahele said.

Rep. Bob Herkes, D-Puna, Ka’u, Kona, said he hopes to create jobs and lower construction costs by removing “cumbersome and expensive” requirements from the state’s building code.

“We’re really going to go after this one,” he said.

Mortgage reform is another goal for Herkes, who wants to amend Hawaii’s mortgage foreclosure law to encourage more mediation to resolve payment disputes.

Currently, homeowners are reluctant to enter into mediation because they risk being charged triple damages, he said. To avoid that problem, Herkes said he will propose a three-year moratorium on the payment of triple damages during foreclosure mediation.

Herkes said he also plans to propose creating some type of entity to buy mortgages held by mainland banks that behave unscrupulously against homeowners despite lacking property title needed to foreclose.

Also desiring an economic boost is Rep. Mark Nakashima, D-Hilo, Hamakua, Kohala.

“Among the legislative goals that I have set for this session are measures that will develop the economy, preserve our environment, enhance education and improve government,” Nakashima wrote in his January newsletter.

He’s introducing legislation to create the Hawaii Science, Technology and Innovation Agency, which would be a public-private partnership charged with defining economic goals.

Preventing development along the rims of designated valleys like Waipio Valley and encouraging the recycling of household batteries are other bills Nakashima said he’ll introduce.

His priorities include taxing eco-tourism companies to help finance environmental protections, establishing an eco-tourism permit program to ensure companies meet certain guidelines like completing an environmental impact statement, allowing schools to serve food they grow on campus, and giving Native Hawaiian-owed businesses a 5 percent advantage when seeking state bids.

Kahele said his priorities include pushing for development of the state’s Banyan Drive properties in Hilo to provide more benefit to both businesses and residents, develop the next phase of Hilo’s Lanakila affordable housing project, expand Highway 130 into Puna, and encourage more student housing at the University of Hawaii at Hilo.

He’s against tax increases and cutting Hawaii County’s roughly $17 million yearly share of the state’s hotel-room tax.

Last year, the cash-strapped Legislature capped the four counties’ combined share of transient accommodations tax payments at $93 million. That move cost Hawaii County about $1.4 million.

Sen. Malama Solomon, D-Hilo, Hamakua, S. Kohala, said she plans to vote against any tax hike. However, Solomon said she’d support boosting Hawaii’s general excise tax — a bill to do that remains alive from last session — provided the Legislature passes her 550-page proposal to eliminate Hawaii’s income tax.

“To me, it would boost the economy very quickly,” she said of forgoing personal income taxes, noting Hawaii residents now pay an average of between $3,000 and $5,000 in yearly income taxes.

“I’m focused on the income tax. That’s going to be my big agenda,” Solomon said.

She’s also drafted legislation to give the counties more control over regulating the harvesting of aquarium fish and revert back to the old process of having the governor’s office accept résumés from people wishing to serve on the University of Hawaii’s Board of Regents. Noting that would require amending Hawaii’s Constitution, Solomon said the current process of applying to a selection committee discourages potential applicants.

As a “100 percent” supporter of Hawaii’s public education system, Kahele said he wants experts to offer solutions for improving schools.

“I look to them for how they intend to make public education better in all schools throughout Hawaii,” he said of the nine-member Board of Education.

Solomon said charter schools, including the 17 located on Hawaii Island, should receive the same funding as traditional public schools.

“One of my priorities is parity for charter schools,” she said. “They never really received their fair share.”

Obtaining millions of dollars for two Hilo school projects is a goal of Rep. Jerry Chang, D-Hilo.

“My main priority is getting funding for our new (University of Hawaii at Hilo) College of Pharmacy building,” Chang said of a scaled-down, $38 million construction project that would involve the university paying $5 million. The design is finished, he said.

Chang wants money in the capital improvements project budget for a new Hilo Intermediate School main building. Although still awaiting a cost estimate, he suggested the price tag will top $25 million.

Chang said he’d also like to see UHH offer a physical therapy degree program.

Rather than seek to raise taxes or reduce the counties’ share of hotel-tax revenues, Chang favors creating new revenue sources. Chief among them is tax money from legalized Internet gaming, he said.

As chairman of the House Water, Land and Ocean Resources Committee, Chang said his priority also is to create a state-owned development area around Hilo’s Banyan Drive to offer tax breaks and lease extensions to businesses that perform construction improvements.

As chairwoman of the House Hawaiian Affairs Committee, Rep. Faye Hanohano, D-Puna, said her top priority is resolving the decades-old dispute involving ceded lands payments the state has not made to the Office of Hawaiian Affairs.

In an effort to settle OHA’s $200 million claim, the parties reached a tentative agreement in November. Subject to legislative approval, the deal calls for the state to give OHA about 25 acres of oceanfront property located in Oahu’s Kakaako Makai area.

Hanohano’s other committee-related goal is to gain passage of her bill, still pending from last year’s session, that would establish the Aha Kiole Commission to “empower Native Hawaiians to participate in the management of Hawaii’s natural, cultural and historical resources” by advising the governor on issues involving management of land or natural resources.

As for construction projects, Hanohano said she’ll seek money to fix a drainage problem with Pahoa’s baseball field and to build locker rooms for Pahoa High School’s new gymnasium.

“Although the gym is already completed, the students have no locker rooms,” she said.

Rep. Clift Tsuji, D-Hilo, Puna, said his role as chairman of the House Agricultural Committee will have him seeking to strengthen Hawaii’s ag-theft laws and adding more agricultural inspectors to replace those laid off due to past budget cuts. Creating greater food independence to keep Hawaii’s money here, generate jobs and enhance safety is another of Tsuji’s priorities.

“That’s what it’s all about — employment,” he said.

Tsuji said he prefers belt-tightening over tax increases, but cautioned fee hikes may be unavoidable.

“All cards are on the table, but (a tax increase) is not a priority, however,” he said.

Email Jason Armstrong at jarmstrong@hawaiitribune-herald.com.