Letter to the Editor in today's Star-Advertiser:
Legislators avoided tax increases
Richard Borreca's column makes some important and cogent points ("Lingle fails to give credit where tax-hike credit is due," Star-Advertiser, July 6). Supplementary points, however, are necessary to correct any misperceptions caused by the headline.
First, the Legislature did not solve the general fund budget shortfall solely by raising taxes. During the 2009 and 2010 sessions, the state faced deficits of $2.1 billion and $1.2 billion, respectively. In both sessions, about 50 percent of the shortfall was addressed by budget cuts initiated by either the governor or Legislature.
Second, the Legislature balanced the budget without a general excise tax increase, without an income tax increase on low- and middle-income families, and without scooping the counties' hotel tax share. The Legislature wanted to avoid a substantial, broad-based tax increase that would have hurt the economic recovery and worsened the cost of living. Instead, the Legislature chose the strategy of increasing selected, narrowly focused taxes and fees and revising certain tax breaks.
For information on how the budget was balanced, see the charts at hawaiihouseblog.blogspot.com.
Rep. Calvin Say, Speaker of the House
Rep. Marcus Oshiro, House Finance Chairman
Rep. Blake Oshiro, House Majority Leader
Showing posts with label State Budget 2010. Show all posts
Showing posts with label State Budget 2010. Show all posts
Friday, July 9, 2010
Saturday, May 1, 2010
How the Budget was Balanced
House Finance supplied this helpful pie chart on how the budget was balanced, as required by law, for the biennium FY2010 -2011.Click here for the pdf and corresponding tables. Or click on photo to enlarge.
At the start of the session, the legislature faced a $1.2 billion shortfall. The pie chart shows that this was resolved by:
*General Fund Budget Cuts & Lapses of $794.4 million (54.3%)
*Tax Refund Delay of $275 million (18.8%)
*Credit Adjustments, Loopholes, Penalties, Enforcement totaling $185 million (12.6%)
*Non-General Fund Changes totaling $77.8 million (5.3%)
*Cash CIP Lapses totaling $62.5 million (4.3%)
*Tax Revenue Increases totaling $58.5 million (4.0%)
*Fee Revenue Increases totaling $9.5 million (0.6%)
Monday, March 8, 2010
In Favor of HB2200
Floor Remarks By Representative Marilyn Lee
Vice Chair - Committee on Finance
Mr. Speaker, I rise in support of the measure:
On February 21, 2010, columnist Thomas Friedman wrote in the New York Times: "A small news item from Tracy, California caught my eye last week. Local station CBS reported that Tracy residents can pay a $48 voluntary fee for the year which allows them to call 911 as many times as necessary. Or, there's the option of not signing up for the annual fee. Instead, they will be charged $300 if they make a call for help. Welcome to the lean years."
Hawaii has not escaped the effect of the US and global recession, and this budget dramatically illustrates the results. This is indeed a lean year.
However, the House Finance committee, ably led by Chair Marcus Oshiro, and supported by a hardworking and research oriented staff, have turned out a responsible yet tough budget to pass over to the Senate.
Members spent many hours going line by line over the budget and were rewarded by being part of a very open and transparent process. Each member had the opportunity for input, and discussions were frank and productive.
Unlike the draft that came down from the 5th floor, the HD1 restores some essential services and does set priorities. And there is no doubt that education, health, human services and agriculture remain at the top of our concerns.
$50 million placed in the budget out of general funds, repeat -- general funds, affirms our conviction that furlough days for our public schools students need to cease. To avoid increasing the number of furlough days to address the budget crisis, the budget identifies areas in which efficiency could be improved. Your Committee has crafted a budget that would involve reductions in POS contracts to spread the burden of general fund shortfalls among those who have been benefitting from private contracts with DOE but have not experienced cuts in funding for those contracts.
Regarding the Mililani High School field turf issue, members should know that this is an example of a true health and safety need for a school that has been generous to a fault in sharing use of its facilities and staff to schools all over the island.
The budget graphically shows, hoever, the huge impact the downturn has head upon departments. Where possible, positions and funds were restored, but funds don't allow for many additions. The Governor's budget has relied on floating payments for critical services down the river -- a quick and dirty solution that families know is not the answer even in their personal finances.
Last week, we passed some creative revenue generating measures, and we look forward to the action the Senate may take, hoping that restoration of some critical programs may be possible through their implementation.
As Tom Friedman states in the New York Times article: "Unfortunately, to lead now is to tram -- services, programs, personnel."
"We have gone from the age of boernment handouts to the age of citizen givebacks, from the age of flying fee to the age of paying for each bag."
To their credit, freshmen members have maintained a stiff upper lip. It wasn't supposed to be like this when they signed up --but they are taking it in stride, doing their homework and explaining to constituents why new programs, projects are not possible this session.
Things will improve. National unemployment figures from last month look better, and local readl estate transactions seem to be perking up. We were blessed that a possible tsunami last week produced only some unusual wave pattersn.
Speaker, this HD1 is just a beginning. The Council on Revenues meets again soon, and we have many difficult decions still to make before the end of the session.
However, I for one have confidence we will be up to the challenge. Therefore, I urge the member's support.
Vice Chair - Committee on Finance
Mr. Speaker, I rise in support of the measure:
On February 21, 2010, columnist Thomas Friedman wrote in the New York Times: "A small news item from Tracy, California caught my eye last week. Local station CBS reported that Tracy residents can pay a $48 voluntary fee for the year which allows them to call 911 as many times as necessary. Or, there's the option of not signing up for the annual fee. Instead, they will be charged $300 if they make a call for help. Welcome to the lean years."
Hawaii has not escaped the effect of the US and global recession, and this budget dramatically illustrates the results. This is indeed a lean year.
However, the House Finance committee, ably led by Chair Marcus Oshiro, and supported by a hardworking and research oriented staff, have turned out a responsible yet tough budget to pass over to the Senate.
Members spent many hours going line by line over the budget and were rewarded by being part of a very open and transparent process. Each member had the opportunity for input, and discussions were frank and productive.
Unlike the draft that came down from the 5th floor, the HD1 restores some essential services and does set priorities. And there is no doubt that education, health, human services and agriculture remain at the top of our concerns.
$50 million placed in the budget out of general funds, repeat -- general funds, affirms our conviction that furlough days for our public schools students need to cease. To avoid increasing the number of furlough days to address the budget crisis, the budget identifies areas in which efficiency could be improved. Your Committee has crafted a budget that would involve reductions in POS contracts to spread the burden of general fund shortfalls among those who have been benefitting from private contracts with DOE but have not experienced cuts in funding for those contracts.
Regarding the Mililani High School field turf issue, members should know that this is an example of a true health and safety need for a school that has been generous to a fault in sharing use of its facilities and staff to schools all over the island.
The budget graphically shows, hoever, the huge impact the downturn has head upon departments. Where possible, positions and funds were restored, but funds don't allow for many additions. The Governor's budget has relied on floating payments for critical services down the river -- a quick and dirty solution that families know is not the answer even in their personal finances.
Last week, we passed some creative revenue generating measures, and we look forward to the action the Senate may take, hoping that restoration of some critical programs may be possible through their implementation.
As Tom Friedman states in the New York Times article: "Unfortunately, to lead now is to tram -- services, programs, personnel."
"We have gone from the age of boernment handouts to the age of citizen givebacks, from the age of flying fee to the age of paying for each bag."
To their credit, freshmen members have maintained a stiff upper lip. It wasn't supposed to be like this when they signed up --but they are taking it in stride, doing their homework and explaining to constituents why new programs, projects are not possible this session.
Things will improve. National unemployment figures from last month look better, and local readl estate transactions seem to be perking up. We were blessed that a possible tsunami last week produced only some unusual wave pattersn.
Speaker, this HD1 is just a beginning. The Council on Revenues meets again soon, and we have many difficult decions still to make before the end of the session.
However, I for one have confidence we will be up to the challenge. Therefore, I urge the member's support.
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