So the daily spirited battle between leftists and conservatives continues unabated in WHT. The never-ending Trump bashing for all of life’s frailties is interesting but increasingly boring. Meanwhile, Rome is burning before our very eyes. I refer to just a few growing problems unique to our Hawaii.
1. Bankrupt rail system
2. No. 1 teacher absenteeism rank nationally
3. Shortage of 700 doctors
4. Traffic gridlock
5. Bankrupt state balance sheet
Let’s only dwell on No. 5 now as the rest have been covered recently. Bluntly speaking, the financial condition of Hawaii is in peril. According to Truth in Accounting (truthinaccounting.org), Hawaii has $6.3 billion in available assets to pay $19.5 billion in bills. This amounts to a ranking of 45 out of 50 states and has thus earned an F rating.
This qualifies Hawaii as a “sinkhole” state, without enough assets to cover its debts. Most of our pension debt is reported ($6.3 billion) on the state balance sheet. Additionally, the health care liability now amounts to a staggering $9 billion and that will increase by another $4.8 billion in FY ‘18 due to a new regulatory mandate. Keep in mind these numbers have amassed during relatively good times in the stock and bond markets. If those favorable results merely go sideways for a few years those unfunded totals will explode.
Furthermore, if the markets ever decline, taxpayers will unlikely be able to meet those obligations to retired state workers. Auwe!
Unfortunately, it appears that our elected officials have not funded the earned benefits entirely as they occur, but rather have used some of that money to keep taxes low and pay for politically popular programs, which, of course, buys votes. So now kicking the can down the road has almost reached the end of the road. Please note how cleverly they announce new taxes with new names and disguises. When has any politician ever discussed our financial plight either during a campaign or once elected? Government never shrinks.
Government never wants less money to spend. To stay on top of this please use www.statedatalab.org. Pity our kids and grandkids. Auwe! Hawaii is Detroit with palm trees!
Jim Higgins is a resident of Puuanahulu