Last week, Governor Benjamin Cayetano announced $28 million in spending reductions for the current fiscal year. A copy of the Governor's press release is attached. These reductions are necessary to balance state revenues with expenditures. The situation is not going to get better soon. The current projection is that state revenues will be $60 million less than annual spending in the next fiscal year, with a $120 million shortfall in each of the following two fiscal years.

There are three reasons for our crumbling economy and state budget:

1. The Asian economic situation, about which we can do very little.
2. The size and cost of state government. In fact, the legislature this year authorized even more government employees.
3. High taxes and the failure to provide meaningful tax cuts to encourage investment and stimulate the economy.

Finally, after almost a 10-year slump, the message is getting through that we cannot afford our existing state government. A group of us in the House of Representative are meeting weekly to define what are the core functions of government and to prioritize government programs. I remain hopeful that we can work together on a bipartisan basis to reduce the cost of state government and avoid massive layoffs. If we do not take action soon, reductions in force will be necessary, and the loss of income and jobs will make our economic situation even worse.

The Hawaii Department of Transportation has initiated a demonstration commuter ferry project on Oahu. You can commute from Barbers Point Harbor and Pier 9 in Honolulu Harbor, with limited shuttle service on each end. Please look at the attached information and perhaps this service can fill your transportation needs and reduce the number of cars on H-1.

Last night the Board of Water Supply had their expert, Robert Tardiff, Ph.D., put on a presentation at Kalei`opu`u School about the safety of the drinking water in Village Park and Royal Kunia. Basically, he said the drinking water is safe - the filters remove the contaminants to a safe level - below the federal/state maximum contaminant level (MCL). He also said that the pesticide contaminants would not have caused the ailments about which residents have been complaining. His theory was that the MCL's, which he had a part in establishing, are set to be safe levels for daily consumption for 70 years. A one time or even month long exposure at the MCL level will not cause health problems. However, Dr. Tardiff stated he thinks the MCL for Trichloropropane (TCP) should be reduced from 800 parts per trillion (ppt) to 300 ppt.

Dr. Tardiff's opinions were generally contrary to those of Dr. Dahlgren, the expert hired by the attorneys suing the pesticide companies. Their one point of agreement was that the MCL is often lowered as we learn just how dangerous these chemical are to human health. There is always a possibility that what we think is a safe level today will be found to be hazardous at some point in the future.

The bottom line for the people of Village Park and Royal Kunia is that we still don't know if there really is a problem. It appears the water we are drinking today is safe and meets current standards. It is also not disputed that between 1979 and 1982, before the Board of Water knew the wells were contaminated, the people in Village Park were drinking water that was contaminated by various pesticides.

The Board of Water Supply is suing pesticide manufactures for $150 million in damages for their costs in filtering the water from various central Oahu wells. I will continue my efforts to find out what has been going on. Copies of several letters are attached for your information.

Several constituents told me the City and County was going to use water from wells closed due to pesticide contamination to irrigate the proposed Central Oahu Regional Park. The situation in Village Park and Royal Kunia has made all of us very sensitive about pesticide issues. I sent the attached letters to Mayor Harris and the State Department of Health asking whether the water to be used to irrigate the Central Oahu Regional Park could affect our health. I have received preliminary information from the City and the State, but they are still working on a detailed response. The issues involved are that we do not allow drinking quality water (potable water) to used for large-scale irrigation purposes. This is to protect our water supply. However, the nonpotable water proposed to be used may be dangerous to the public health. Filtration of the nonpotable water would make it potable, and then it could not be used for irrigation. The bottom line is we have to make sure the City and the State are making sure no one is going to be exposed to an unsafe level of pesticide contaminants.

The State Librarian has decided to put "on hold" building a library to serve the Kapolei region using $7.4 million appropriated by the legislature in 1998. These funds expire (lapse) on June 30, 2000. Her idea is to go the legislature in January 2000 and request a new capital appropriation of $7.4 million, and to request another $12 million in 2001. This is in addition to operating expenses such as staff, books, etc. After what I discussed above about the state budget, what do you think her chances are? We are circulating a petition urging her to use the existing money to construct Phase I of the library. I would appreciate your support. Copies of various letters are attached.