GOP: PRIORITIES DO COUNT

Special Purpose Revenue Bonds should be used for "special purposes" not to subsidize business ventures

"The House Republicans today voted down the issuance of two series of special purpose revenue bonds designed to assist a local corporation, Science and Technology International.

The ostensible purpose behind the issuance of these bonds were to finance the capital costs related to the relocation of and construction of a new corporate headquarters in Kakaako and to construct a freeze- dried coffee facility on Kauai. These purposes do not represent the best use of such bonds. Since enabling legislation for the issuance of special purpose revenue bonds requires the approval of two-thirds of the House, we took this opportunity to express our disapproval by voting against their issuance.

"Traditionally, such bonds are issued for utilities serving the general public, or for health care facilities, or perhaps for low and moderate income government housing programs," said Rep. Colleen Meyer. "While it is permissible to issue bonds to assist manufacturing processing enterprises, we felt issuing $10 million in bonds in order to build a new corporate headquarters wasn't what the authors of our constitution had in mind. And additionally, to want another $10 million for a vaguely worded proposal for coffee facility on Kauai, was also out of order."

"We must remember that Hawaii doesn't have a bottomless supply of Special Purpose Revenue Bonds to hand out," Rep. Meyer continued, "and that there is a federal cap on the amount that can be outstanding."

"We Republicans may stand for the encouragement of private enterprise, but we believe, in this case, the issuance of these bonds is not the best use of public money. We feel it our responsibility to maintain some discipline over the issuing of special purpose bonds. If we don't, there will be no room for issuing bonds for projects providing a public benefit such as hospitals or other needed care or treatment facilities.

We are charged by our constituents to make decisions on their behalf -- decisions that are clearly in the best public interest. That is what we believe we did.

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