Aloha! Once again, it is time for the monthly update from our office.
GENERAL EXCISE TAX (GET)
Last week this administration brought before us a proposal to increase the GET. As you recall, last year in the face of the unbalance budget due to the problems with the lava inundation, council approved a quarter percent GET surcharge increase. GET revenue is based upon our GDP (gross domestic product) for our county. Using the number from our Finance Department of $10 billion per year, the already approved GET 0.25 percent will generate $25 million per year.
The proposal is to double that and remove the sunset clause currently in place for 2020. Though I agree that the county needs to diversify our revenue sources, increasing a tax just because we can does not sit well with me. We have been given no projection of expenditures. In my short time in office, our budget has gone from $461 million to $518 million per year; approximately 13 percent increase in two years. Once again I will be pressing for an ad hoc committee or omnibus type of legislation where we look at revenues in context with expenses.
AGRICULTURE, WATER, ENERGY, AND ENVIRONMENTAL MANAGEMENT (AWEEM) COMMITTEE 2018-2020
My committee assignments for this council term is chair of AWEEM and vice chair of the Committee on Finance. When Gov. David Ige took office in 2014, he set a goal of doubling food production in our state by 2020. Was that over optimistic? Yes, but it set an excellent direction of expectation. Currently we import about 90 percent of our food. We can do better. It is my belief that when we talk about agriculture/food production or renewable energy, we are talking about county or state resiliency. I also believe that part of our government obligation to the people is to help projects get started and then have an exit strategy, so the project stands on its own. Agriculture and energy production are potential examples of this. From time to time I plan on sharing some initiatives that show a bright promise and future for our county through these industries.
One such example of this is the relatively new Hawaii Ulu (breadfruit) Producers Cooperative. Founded in South Kona with seven members initially, today it boasts over 70 members with its last year’s production of processing over 150,000 pounds of ulu! Building agriculture, building economy while developing a culturally important food source is exactly what we are hoping for in agriculture. Cooperatives like these holds every promise for success. For more information on the Hawaii Ulu (breadfruit) Producers Cooperative go to www.eatbreadfruit.com
SEWER FEES
Recently the Department of Environmental Management came before the council with a request to substantially increase the sewer fees. It has been 17 years since they have had any increase. Putting that in context for the same buying power, $1 in the year 2000 equates to approximately $1.45 today.
Approximately 18 percent of our Big Island population is on sewers. Our sewer systems are antiquated and in dire need of updating. Waste management is the responsibility of the entire county population. Sewer facilities are for the protection of our environment especially in our coastal waters. It is a benefit to all the people of our county, not just those on sewer systems. We have a mandate that by 2050 all cesspools will be closed. More of our community will be on sewer systems by then as it is the best solution for generations to come. This is where the dilemma arises.
As our council chairman has repeatedly stated, it is about fairness. Environmental management needs more funding; that is agreed. The question is how? The simple answer is increased sewer fees. But if the need and benefit is for the county, should not the county as a whole support our sewers and a portion of the funding come from the county’s General Fund/other tax revenues? This is the basis of the conversation that Council Chair Chung, Councilwoman Lee Loy, and myself were exploring. Stay tuned.
As always, it continues to be a great privilege to serve as your Councilman.