July 1st, 2009 by Jerry Burris
It's hard to see how Hawaii's public worker unions can win in their confrontation with Gov. Linda Lingle over her plans to impose rather draconian furlough plans in an effort to steady the state budget.
The unions say any furlough effort should be negotiated. Lingle says she believes she has the authority to impose the mandatory furloughs as an alternative to layoffs or direct pay cuts.
There may indeed be some room for negotiation. Lingle's plan for three furlough days a month for the next two years is about the toughest plan in the nation. But many other states, including California and Nevada, are looking at some kind of furlough system as a preferrable alternative to direct layoffs.
Ideally, the unions --which clearly recognize the state's difficult economic situation -- should be able to quickly negotiate a deal with the Lingle administration that sets an absolute number for payroll savings. Then, they would work on a package of furlough options, voluntary pay cuts, deferred benefits and the like.
At the end of the day, however, it seems furloughs are preferrable to outright layoffs. The pay loss is painful, but when the economy turns around, the job will still be there.
Tags: budget, furloughs, Lingle, public workers
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June 29th, 2009 by Jerry Burris
Here's an interesting problem for the 14 folks who have filed to run for the Honolulu City Council seat left vacant by the death of Duke Bainum:
When do they put their campaigns into high gear, spending what they have on advertising, lawn signs and the like?
In a regular election, these decisions are guided by the fact that voting (minus absentee voting) takes place on a specific day. Campaigns can be geared to peak just as election day approaches.
But in this special election, voting will be conducted by mail. Registered voters in Bainum's district will receive their ballots in the mail on or around July 17 and must send them back by August 7. So what is a candidate to do? Get into high gear now? Wait until mid-July? Or make a final push in the days leading up to August 7.
Best bet: Start early and push hard when the ballots first go out. Candidates who keep their powder dry until close to the end may find out most people have already voted.
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June 26th, 2009 by Jerry Burris
Honolulu Mayor Mufi Hanneman effectively held his nose Friday when he allowed a new City budget to become law without his signature, but without his veto either.
Hannemann was particularly unhappy with the Council's refusal to accept his idea of a 75 buck tax credit for residential property tax payers. That would have softened the blow of his plan to boost taxes to $3.59 per $1,000 of assessed value.
Instead, the Council set a rate of $3.42 with no new tax credit. The net result, Hannemann claimed, not only puts the City behind the eight-ball on its budget but it creates a "regressive" property tax system in which the poor subsidize the rich.
True enough. But even with the $75 credit, the property tax system is regressive. Owners of million-dollar property pay more in absolute taxes, of course, but the same rate as those in modest bungalows.
It is certainly possible to create a progressive property tax system, in which the rate goes up along with the value of the property. But what politician in his right mind would shift the tax burden to the backs of the folks who make up the majority of voters: Middle and upper middle class homeowners?
Tags: City Council, Hannemann, Honolulu, property taxes
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June 24th, 2009 by Jerry Burris
The sad saga of the Hawaii Superferry continues. The latest news is that the company has petititoned to effectively abandon its two vessels because it cannot affort to keep or maintain them.
If that happens, the two ships become the property of, well, us. That is, the Federal Maritime Administration, which holds about $136 million in mortages for the ships. We are also owed money through the state of Hawaii, which put up nearly $40 million worth of harbor improvements for the ferry service.
One way or another, the public put up a lot of money for what turned out, uhappily and perhaps unexpectedly, to be a pipe dream. Was it worth it?
Tags: public, Superferry, taxes
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June 19th, 2009 by Jerry Burris
Tough tines these.
The governor announces plans to lay off people, at least three days a month, to keep the state budget on keel.
Meanwhile, North Korea says it has missiles ready that could hit Hawaii, if not the Mainland. U.S. Defense systems are put into place.
The governor's plan is to let many state offices go dark on Fridays.
Let's hope if the Koreans attack, it won't be at the end of the week, at any rate!
Tags: budget, korea, Lingle
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