SBH Sunrise
May 31, 2007
Manny Menendez

INSIDE THIS ISSUE

Legislature Earns "F" with No Business or Tax Relief

The 24th State Legislature which mercifully adjourned Thursday, May 3 was describes by Senator Sam Slom as, "Nasty and do nothing."

Not since the days (mid-1990s) when the United Public Workers (UPW) powerful union leader Gary Rodrigues, was referred to as the "26th State Senator" by Slom (Rodrigues has been awaiting federal prison for 5 years on appeal of a fraud conviction) has a union so dominated the senate and controlled legislation as the Hawaii Government Employees Union (HGEA) in 2007. HGEA, who supports many key Democrat leaders in both Houses, with money, manpower and other resources, orchestrated the session by having legislation enacted, killing legislation, disapproving the Governor's executive nominees and then overriding her vetoes of key anti-business labor bills.

Collective bargaining agreements that will cost taxpayers hundreds of millions in additional payroll and benefit costs, and the Senate's advise and consent process of confirmation of executive cabinet and board appointees, drove this year's session which began in mid-January.

The high profile rejection of Peter Young at the Department of Land and Natural Resources, Iwalani White at Public Safety and the decision by Nelson Befitel not to go through the demeaning process to seek another term as Labor & Industrial Relations Director, leaves the Governor with three vacancies out of 16 cabinet heads. DHS chair, Lillian Koller, Attorney General Mark Bennett and Judge nominee Glenn Kim, were all given a hard time, where subpoenas, anonymous names and back door meetings prevailed.

Native Hawaiian groups, environmentalists, small business, law enforcement and voters were generally disrespected by the majority party during this year's session.

A $20 billion budget was passed - nearly half a billion more than the preceding biennium & and additional spending bills more than ate up the $760 million surplus at the start of the session. Public education will now have more than $2.7 billion, without accountability or meaningful improvement in student test scores.

Proposed new spending and taxes, such as "anti-speculation" conveyance and income tax hikes and the so-called "Streamlining tax" (back-door internet tax) were defeated only in the last days. The bottle tax was extended to 68 oz. containers and the $3 per day rental charge — due to expire — was renewed.

A rebate to taxpayers - as required by the State Constitution - was the last thing approved and then the rebate only applies to couples earning less than $60,000 per year; minimum income in Hawaii with the highest cost of living in the U.S.

The Democrats firmly control, 43-8 in the House, 20-5 in the Senate, the legislature and set the agenda and hearing schedule. Even on the night of the final bill posting deadline, from conference committees (Friday, April 27 at midnight), the House Speaker and Senate President chose to extend the deadline another 12 hours for final receipt of documents. This was unprecedented.

The teachers union, the HSTA, wants teachers to get $100,000 or more. Not this year, but they'll be back. With their 8% wage hike (over two years) they almost balked at random drug testing, despite drug busts of several teachers recently.

For business, no Unemployment Compensation or Workers' Compensation reforms were enacted. No let up in the destructive medical malpractice costs that drive Island physicians from Hawaii. Only more union mandates, requirements and costs.

Several of the Governor's key vetoes of harmful bills were overridden on May 1 and May 3. Future veto overrides will require a Special Session during the summer.

Unpleasant surprises: the 5-member Senate GOP minority seems more divided than ever. Freshman Mike Gabbard voted with the Democrats nearly 95% of the time and had the fewest number of no votes in the caucus. Paul Whalen, the Floor Leader, spoke very sparingly, which is unfortunate because when he does speak he is effective.

Formerly, Democrat Senators Les Ihara and David Ige were occasionally independent but now that both enjoy majority officer status, they generally are in lock-step with leadership even on "Sunshine" (open government) issues. New Senate Majority Leader, Gary Hooser of Kauai, continues personal attacks.

Senate president Colleen Hanabusa did a good job as administrator, but blindly backed committee chairs, no matter how wrong or hurtful their positions were. Clayton Hee continued his deserved role as Senate bully. Former Senate President Robert Bunda, earned more respect for his independent and reasoned votes this session, joined by Lorraine Inouye, and sometimes, Will Espero and Ron Menor.

In the House, the Democrat majority was firmly in control, and mostly in sync with their Senate counterparts. The 8-member GOP minority, led by Lynn Finnegan, had moments of solidarity. Finnegan, Colleen Meyer and Gene Ward are the strongest business advocates. One GOP Rep already rumored to be ready to abandon party ship soon.

A complete individual legislator rating, based on small business support, in both houses, will appear in next month's SB News.


Embattled DLNR Director Peter Young's nomination process (above) became the hallmark of legislative nastiness after his record-long 5-day hearing ended up with the Senate Water Land, Ag & Hawaiian Affairs committee turning him down before the entire Senate did the same by a 15 - 8 margin. Young was one of several Governor nominees not to get approval despite overwhelmingly positive testimony from the public. Politics and anonymous allegations brought some fine people down or close to the brink.