PUBLIC SCHOOLS WIN BIG AT SESSION MID-POINT

Despite defeat of bills to fund computers and textbooks for public schools by the Republican minority, public education was the clear winner in the House of Representatives at the halfway point of the Legislative Session.

"At the outset of this session, the Majority Caucus laid out an agenda that supported working families in Hawaii," said Rep. Marcus Oshiro, Majority Leader. "At the middle point of this session, I am very comfortable that the Legislature as a whole will adopt all of our substantive measures."

The agenda proposed by House Democrats was a 15-point set of legislative goals that would support working families through greater educational opportunities, a sustainable economy that offers quality jobs, and a more efficient and responsive state government.

At today's cutoff point for the exchange of bills between the House and Senate, House lawmakers passed the two-year budget bill, House Bill 200, House Draft 1, which is the basic financial plan for the state over the next two years. The budget proposes a general fund budget of $3.5 billion in fiscal year 2002, and $3.6 billion in 2003. When combined with non-general fund items, the budget is $7.1 billion in 2002 and $7.3 billion in 2003. The capital improvements budget is $626 million in fiscal year 2002, and $512 million in 2003.

Mounting expenses in the areas of fixed costs and compliance with court mandates are the prime reasons for the increase in the budget, according to Rep. Dwight Takamine, Finance chair, in his remarks to House members.

Takamine said fixed cost items such as debt service, contributions to the Employees' Retirement System and the Public Employees' Health Fund will consume over $927 million in general funds in fiscal year 2002, and over $1 billion of general fund appropriations in 2003.

In addition, the costs of complying with the Felix Consent Decree amount to over $716 million over the 2002-03 biennium, Takamine said, along with $86 million due for other court settlements over the same period.

But several Democrats complained that the budget falls short in several areas.

"We still have young children without access to qualified dental care," said Rep. Dennis Arakaki, Health Committee chair, who nevertheless said he would support the bill.

Rep. Joseph Souki, chair of the Transportation Committee, also said he would support the bill but argued that in past years, many departments and programs suffered deep cuts by Democratic legislators and that it's time to restore funding to some of those areas.

Six of the 19 House Republicans opposed the budget. Several Republicans who voted yes, including Rep. Mark Moses and Rep. Charles Djou, said they did so only to be able to participate in the conference committee process with the Senate.

"It's important to remember that as solid a document as this is at this point, it's still a work in progress," said Oshiro. "There is ample time to communicate ideas with the Senate as they evaluate this budget. We can resolve all the issues in conference."

Takamine said after accounting for fixed costs and legal obligations, the bulk of the remaining funds are directed to education, public health, human services, substance abuse treatment, public safety, environmental protection and high technology development to underscore the Legislature's priorities.

Oshiro said the budget bill, combined with other measures passed by the House, strongly supports the goals and objectives Democrats articulated at the start of session. The measures that passed which uphold the House Democratic Majority Agenda include:

"To provide greater educational opportunities that empower people to reach their highest potential ..."

• House Bill 1041, House Draft 2, recognizes public school teachers and compensates them adequately by providing for incremental pay increases;

• H. B. 200, H. D. 1 (Budget bill), appropriates $8.4 million for 2002-03 for the hiring of new teachers in both existing and new public schools; appropriates $12 million over the same period for the hiring of 26 vice principals plus business support assistants; appropriates $5.6 million for textbooks and school supplies for new facilities;

• H.B. 1044, H. D. 1, helps the recruitment and retention of principals by requiring the Department of Education to develop a classification and compensation structure for educational officers that more accurately reflects the work being performed;

• H.B. 178, H. D. 1, enables students to make a smooth transition from school to the workplace by funding the state's school-to-work system;

• Other education support contained in H. B. 200, H. D. 1 (Budget:

• Funds 200 new clerical positions ($3.3 million for 2002-03)

• Funds 24 new security attendants ($1 million over two years) to enhance physical safety and welfare of students and teachers

• Provides $2.1 million per year for 2002-03 for repair and maintenance of school facilities

• Funds $1 million in custodial supplies, an increase of more than $600,000 in the amount originally requested by the Governor

A bill to provide $27.5 million for computers in the classrooms using the State's rainy day fund was defeated when all House Republicans voted the measure down. Use of emergency, rainy day funds requires a two-thirds majority.

"I really believed this bill would pass unanimously because the use being proposed was of the highest public purpose," Oshiro said, "and because when the bill passed the Finance Committee, the five Republicans on that committee voted yes." Two other measures that address textbooks and school supplies were deferred but are addressed in H. B. 200.

"To ensure a sustainable economy that provides a better quality of life for our families … "

• H. B. 166, H. D. 1, helps low-wage earners by raising the State's minimum wage to $5.50 per hour on July 1, 2002, and $6.00 per hour on July 1, 2003;

• H. B. 163, H. D. 1, reduces the tax burden for those most in need by establishing a food tax credit of $70 per qualified exemption;

• H. B. 165, H. D. 1, also reduces the tax burden for lower income families by providing a State earned income tax credit;

• H. B. 175, H. D. 2, enhances development of the high technology and biomedical industries by expanding investment incentives and broadening tax benefits;

• Encourages the development of clean and renewable energy sources through the following measures:

• H. B. 173, H. D. 2, requires power utilities in increase the amounts of energy provided by renewable sources and provides credits for independent providers of renewables such as solar energy and wind power

• H. B. 1385, H. D. 3, establishes procedures and requirements for the net energy metering using a single meter than can register the flow of electricity in both directions

• H. B. 1554, H. D. 1, encourages the development of hydrogen as a power source through a private-public partnership under DBEDT;

• H. B. 1282, H. D. 2, extends the energy conservation income tax credit to July 1, 2006;

• H. B. 953, directs the Legislative Auditor to conduct a management audit of the Public Utilities Commission and submit a report prior to the 2002 Session.

"To provide a smarter, more efficient government that represents the people's best interests …"

• Build on reforms and improvements in the civil service system to realize the goal of a more efficient and responsive government workforce through the following measures:

• H. B. 1058, H. D. 1, controls government costs by capping the State's contribution to the Public Employee Health Fund

• H. B. 620, H. D. 2, aims to reduce the cost of providing government services through a system of managed competition that permits the public sector to compete with the private sector in providing certain services

• H. B. 177, H. D. 1, permits the governor to contract for private sector operation of state correctional facilities and establishes criteria for a privately built and operated prison;

• Cleans up campaign financing laws and reforms election laws through the following:

• H. B. 170, H. D. 1, prohibits holders of government contracts from making political contributions to candidates for a period of one year from the termination of the contract and at no time during the life of the contract; prohibits corporations, banks and labor organizations from making political contributions to political parties

• H. B. 169, H. D. 2, establishes a pilot project for the public funding of the 2002 Honolulu City Council races provided candidates agree to certain campaign spending restrictions

• H. B. 168, H. D. 1, ensures the integrity of Hawaii's elections by reviewing current laws and making recommendations for improvements, including provisions for an automatic recount in contested situations

• H. B. 176, H. D. 3, increases treatment and prevention of substance abuse by mandating substance abuse assessment and treatment for offenders under supervision of the Department of Public Safety;

• H. B. 165, addresses the impending long-term care crisis by funding an actuarial study by the Legislative Auditor on Hawaii's long-term care needs.

An important area of concern for House Democrats is the threat to remove certain federal and other entitlements for native Hawaiians. Oshiro said the House Majority is committed to protecting those entitlements and have passed two resolutions to convey the Legislature's position to the U.S. Government.

"I believe that at this point in the session, the House has adopted a package of legislation that addresses Hawaii's immediate and long-term needs," Oshiro said. "It is now our duty to work with Senators so they will understand our intent."

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