Report to the Ewa Neighborhood Board No. 23 - October 14, 1999

Economic Chickens Come Home to Roost:

Yesterday, 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.

Kapolei Library:

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.

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