Veto pen should spare key state programs
If there's a unifying rationale behind the bills Gov. Linda Lingle is eyeing for a veto, it's this: We can't afford anything extra right now. No extra tax burden, no new or expanded programs.
These days, it's hard to argue with that general logic. However, it can't be applied uniformly to all proposals. Even in an economic downturn, the underpinnings of future economic growth must be set, and critical improvements to the governmental structure must be made. Once the economy starts to rebound, Hawai'i can't afford to restart its engines from a dead stop.
There are also "safety net" programs for people already on the financial margins who were pushed off the edge by the economic collapse and job losses. Seeing that these people do not fall through expanding gaps in the safety net should be a core mission of government during trying times.
With these guiding principles in mind, here are a few of the major bills that Lingle should allow to become law or, if they are rejected by the July 15 deadline, lawmakers should seek to override the veto.
• House Bill 989 allots $200,000 to extend the Hawai'i Children's Health Care Program, also known as "Keiki Care" for three more years. Health care reform is sure to change the landscape in the coming months, and lawmakers may need to revisit this program midstream. However, the need of uninsured children is immediate, and Keiki Care should be restored to health.
• HB 1271 would add a dollar to the tax on the sale of a barrel of oil, now set at a nickel. This is a low-impact way to produce revenue that's crucial to the development of clean-energy and food-security initiatives that are high priorities for the state.
• HB 1525 would set stricter financial reporting requirements in future Medicaid health insurance plan contracts, whether the contractor is a nonprofit or for-profit company. Public transparency is essential when entrusting any entity with tax funds to fulfill a critical public service.
• Senate Bill 199 would scale back the tax credit for high-technology businesses, striking a needed balance between supporting this fledgling sector and keeping tax coffers adequately funded.
• SB 423 would direct $12.2 million to secure matching funds to supplement reimbursements to hospitals treating low-income patients. This support is critical to support the health care system that serves all Hawai'i.
• SB 1673 gives more flexibility to the Hawai'i Health Systems Corp., giving each island system more organizational options. In this economy, health-care systems should be as nimble as possible to respond to differing needs.
The governor has rightly identified some measures the state can't afford right now. For example: HB 36 would direct more money to the Sanitation and Environmental Health Special Fund. Expanding this important service is a wise goal, but unsuited to these lean times.
Similarly, the rural health care training program that HB 343 would enable should should wait until the state is under less fiscal duress.
And the governor is right to seek a veto of reorganizational schemes such as proposed in SB 387, moving around functions of the Department of Business, Economic Development and Tourism like so many deck chairs.
Ultimately, both the executive and legislative branches need to proceed with caution in their efforts to do more with less this year. They should distribute scarce funds with an eye on the state's most critical needs and its capacity to build toward a preferred, brighter future.