Hawaii Lawmakers Raid All Kinds of Special Funds
By Hawaii Reporter.com
The 6-cent tax on all cans and bottle beverage containers sold in Hawaii is supposed to fund a mandatory state recycling program. But lawmakers raided that special fund this year for $300,000 to help balance the state budget and projected $1.3 billion budget shortfall for fiscal years 2012 and 2013. Thats not all. They drained the Hawaii Hurricane Relief Fund for $120 million to fund education, and they raided the Rainy Day Fund as well.
At least 21 other special funds were depleted as Hawaii lawmakers voted to scoop them for a total of $18,609,988. In addition, another 21.5 percent of the Tobacco Special Fund, which is supposed to fund education and health related to smoking, was diverted to the state general fund.
The fund raids ranged from $1 million from the states Risk Management Revolving Fund, to $500,000 for the states Medicaid Investigations Recovery Fund, to $2 million from the states Mental Health and Substance Abuse Special Fund and to $1.5 million from the Compliance Resolution Fund.
There were also raids to the Environmental Management Special Fund for $750,000, the Special Unemployment Insurance Administration Fund for $1.5 million, the Community Use of School Facilities Special Fund for $1 million, the Trauma System Special Fund for $1 million, and the Captive Insurance Administrative Fund for $2.5 million. Hawaii Lawmakers Raid All Kinds of Special Funds Another fund that is supposed to offer training for the unemployed, which employers are taxed for and must pay into, also was raided for $44,000.
No area appeared to go untouched. An estimated $77,000 was drained from a Drug Demand Reduction Assessments Special Fund; $916,284 was scooped from the Healthcare Revolving Fund, $520,780 was taken from the University of Hawaii Faculty Housing fund, $21,440 was raided from the Travel Agency Education Fund, and $500,000 came out of the Stadium Special Fund.
Sen. Sam Slom, who votes against the creation of every single special fund in the state, said the legislature can drain these funds without the public noticing and create a backdoor tax and fee increase, when the public has to replenish them.
Selected List of Bad Business Related Bills
Some of the bad bills that were voted upon include the following:
HB 200: The $22 billion State Budget bill made only modest cuts to a few programs. Most of the cuts were to executive budget increases. Even with these modest costs and new funding mechanisms, the budget will end up being unbalanced.
SB 1520: The native Hawaiian caucus passed what the Akaka Bill couldnt do with this foot in the door bill that will someday force a new government on everyone. The bill sets up a roll call commission to register people of Hawaiian ancestry. This is a localized form of the federal Akaka Bill that will create more government bureaucracy, mandates and cost in the future.
SB 1328: This bill increases vehicle registration fees.
SB 1329: This bill increases to the vehicle weight tax. County taxes may also increase. SB 1221: This is a bill that requires construction procurement contracts to use 80% local employees. A similar measure that passed last year was ruled un-constitutional.
SB 1270: Raids the hurricane insurance special fund.
SB 570: Eliminates the personal deduction for taxpayers with income above specified thresholds.
SB 754: This bill suspends general excise tax exemptions for certain persons and entities on their gross amounts. Passed out of the Senate 17 to 8.
SB 120: This raid bill transfers balances of certain special funds to the general fund. Also converts some revolving funds into special funds. Diverts part of the tobacco settlement special fund to the general fund.