Ige’s veto list shows political courage
Gov. David Ige, it is gratifying to see, seems willing to take some politically difficult stances, judging by his newly released list of legislation lined up for his veto pen.
For example, it’s never easy for an elected official to face off against legislation championed by one of the powerful public employee unions, but Ige has done so by including Senate Bill 2077 on Monday’s list of potential vetoes.
This measure seeks to expand the severance benefits for the state-run Maui and Lanai hospitals’ employees — most of whom will retain their jobs once the facilities are converted to private management.
The governor must follow through and spike the bill, guided by his tentative conclusion that SB 2077 would run counter to the fiscal principles he favored as a state senator himself. According to conservative estimates, it would cost the state $40 million and add to the state’s unfunded liability in benefits owed to its retired workforce, a deficit Ige has long sought to whittle back.
Supporting the bill are its beneficiaries — the United Public Workers, which is suing to block the transfer of the facilities to Kaiser Permanente Hawaii, and the Hawaii Government Employees Association.
Regardless, this spendthrift bill is patently counter to the privatization initiative’s fiscal soundness. Ige’s veto here would reveal a political courage that eluded most state legislators.
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The turnover of the facilities to Kaiser offers the best hope of making the Maui district’s health care safety net far more financially sustainable, rather than the chronic drain on taxpayer funds that it is today. These facilities need to be run more efficiently, if they are to continue fulfilling the critical role providing care to the islands’ communities.
Ige also seems positioned, wisely, to axe a bill that, in the short term, seems a boon to state tax coffers.
House Bill 1850 would allow Airbnb and other transient accommodations brokers to handle the collection of tax from vacation rentals. This is not so much a bad idea, but one whose time has not quite come.
Ige rightly points to Act 204, enacted only a year ago, that was put in place to ensure that owners and managers of vacation rentals post their tax numbers in advertisements so that county regulations governing them can be enforced and fines for violations can be assessed. That enforcement mechanism is not yet in operation, so HB 1850 is premature.
Additionally, the bill does not compel the lodging brokers to comply with Act 204. That disconnect must be rectified by reintroducing the Airbnb measure next session — with the compliance requirement firmly in place.
Counties have been struggling to get a handle on the burgeoning vacation rental industry. Its critics maintain that their proliferation has redirected rental units away from the residential market, curtailing the inventory and pushing up rents as a result. County officials should have the ability to track the rentals for compliance with local zoning regulations, and undermining Act 204 would be a disservice to that aim.
In passing HB 1850, Senate and House leadership said the measure would help the state collect millions of dollars in unpaid taxes, while leaving enforcement against illegal short-term rentals up to the counties.
The “Airbnb bill” was pushed by high-powered lobbyists and moneyed interests, so it’s heartening to see a willingness to resist. Again, Ige should go ahead with this veto, without delay.
Ige seemingly has applied a common criteria in evaluating the other bills under veto review. They are being judged for their necessity, and whether there is a practical means for implementing them.
That is a good matrix to use. It also helps to explain his decision to pass another controversial measure, HB 2501. This bill allows Alexander &Baldwin Inc. to continue short-term permits for diverting water from streams in East Maui while challenges to its permits are resolved.
Critics are right that the state’s management of its water resource has been ineffectual, and that a return to long-term leases that assess the proper value for water use is essential. However, the reality is that the state does not yet have the capacity for such permit reviews. The Department of Land and Natural Resources must make this a priority, and A&B must accelerate the right-sizing of its water use, in the three-year term of the permit extension HB 2501 allows.
Good legislation requires that laws have not only the best of intentions but the means of executing their objectives. Ige’s tentative positions on these bills demonstrates he grasps that reality. We hope he delivers on it.
13 responses to “Ige’s veto list shows political courage”
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I would wait to see if he actually vetoes the expensive Maui hospital pensions bill. Too soon to tell…
Ige is one and done -vote him out WAKE UP HONOLULU ANDLETS GET NEW PEOPLE IN PLACE
The Governor is right to veto HB1850 (Airbnb bill). We now know Airbnb wrote the bill. Airbnb does not care about collecting taxes, that was a Trojan horse. What Airbnb really wanted was to hide the illegal vacation rentals from the public and County inspectors. On Oahu, over 80% of the vacation rentals are illegal and Airbnb wants to protect them and their illicit cash flow. Auwe Airbnb!
I hope you realize that if C&C were to shut down all vacation/short term rentals there would still be housing problems, including some new ones:
1) there will be a marked decrease in accommodation capacity on Oahu,resulting in fewer tourists, reduced tourist spending, reduced business revenue, fewer jobs, more unemployment and more difficulty affording housing.
2) Neighborhoods that complain about increased activity from tourist rentals, will now have increased activity from long-term renters.
3) Tourists who rent via AirBnB or VRBO tend to be quiet older folks who turn in early. They have luggage and a rental car. Tourists who want to party and make noise tend to go to Waikiki where there’s nightlife.
4) Long term renters often have to share space to afford it, meaning more people, more cars, loud motorcycles, dogs barking, parties for family/friends – with even more cars and traffic.
5) If you don’t like a long term renter, get used to it, they’re staying – and it’s hard to evict them. If there is an unpleasant visitor (which is rare because they have a “profile” that is used to screen them and to keep them honest), they will be gone on a few days.
6) Currently, homeowners are also incentivized to keep their homes looking good by the same online rating system. Homeowners who relied on vacation rental income (which is more than for long term renters) will struggle to pay huge mortgages, and be less able to afford landscaping and home maintenance costs, and will have less incentive to make their homes look good.
7) Many homeowners don’t want the hassles and liability that often come eith long term renters, and all their stuff.
8) Some long time residents will have to sell their homes to wealthy investors or buyers from the mainland. This is already happening in Kailua and similar neighborhoods and without extra income, this will accelerate.
9) With reduced GET, TAT and economic activity when so many visitors are turned away from our tourism-based economy, the state will have to raise taxes on residents or cut back on services.
10) These are some of the reasons why Maui county expanded approval for short term vacation rentals.
No one is proposing to shut down all vacation rentals. Legal vacation rentals will still exist. What the public is asking for is all “illegal” vacation rentals be shut-down and there is punitive action against the owners of these illegal businesses. No one has claimed that illegal vacation rentals is “the cause” of our housing shortage, but every housing expert has concluded that illegal vacation rentals do “contribute” to the problem. The solution is quite simple – Allow vacation rentals to proliferate in resort zoning and preserve residential zoning for residential use only. That solution might not benefit you personally Dano, but it’s in the best interest of the public good. That is why the Governor will veto the bill.
Who do we see about joining the Class-action lawsuit regarding putting gun owners on the FBI watch list?
I wish the SA would print the names off all the legislators who voted for the bill that gave ridiculous severance benefits to the Maui Hospital workers. The public should know which legislators are puppets of the public unions.
I’d like to see that also! And who is getting campaign contributions from the Unions involved.
agree..but that is what the monopoly party does to stay in power.Wait until the pensions have to be paid out in the next 20 years. Kiss off any programs for young families and children. 100% of the budget will be committed. The public will rave but the culprits will be long gone.
I’m wondering if this is a political ploy by Ige. Does this veto prohibit the Legislature from overriding it?
IMHO…Ige is doing a really good job so far!
Especially if he follows through on these vetoes.
Public labor unions have too much greed & power. AhiPoke is right. We need the newspaper to publish the names of Hawaii’s lawmakers who are beholden to the unions and are their pawns. These politicians are a Cancer that needs to be cut out. Labor Unions could suck State treasury coffers bone-dry, and it STILL wouldn’t be enough to satiate them!