Every Sunday, “Back in the Day” looks at an article that ran on this date in the Honolulu Star-Bulletin. The items are verbatim, so don’t blame us today for yesteryear’s bad grammar.

Governor John A. Burns warned a House of Representatives Policy Committee yesterday that a $10 million deficit appears to be in the cards for the State in the 1964-65 year.

Despite the warning, the committee, which is made up mostly of House leaders, vowed not to increase taxes in 1964.

The year also is an election year when many legislators will have to go to the people for re-election.

The Governor also advised committee members that he proposes legislation which would repeal the automobile weight tax and supplant instead a car value tax which incorporates the ability-to-pay principle.

The change would boost tax revenues for highway construction.

The Governor told the committee, which is headed by Representative Howard Y. Miyake, that the proposed general fund budget for the 1964-65 fiscal year, a budget involving State 

finances only, comes to $137 million.

Estimated revenues for the same fiscal year stands at $110 million.

Miyake said the $27 million deficit would be automatically reduced by another $17 million in revenues from rentals and services which the State provides, thus leaving the $10 million shortage.

Miyake also pointed out that the deficit could be further reduced to 

$7 million by increasing the rates which the State charges for services, fees and rentals.

Miyake said the reason the Policy Committee voted against a tax increase is because there is still “a lot of fat” that can be cut from the budget.

He said the committee strongly indorsed House Finance Chairman Stanley I. Hara’s pledge for no tax increases in 1964.

But Hara also warned that there may be a need for a tax hike in 1965.

Miyake said the no tax hike also includes no increase in gasoline taxes pending a “serious re-evaluation of the highway construction program.

“Just because plenty of Federal aid funds are available, it shouldn’t mean that we should go hog wild for all of that money.”

Miyake also reflected the economy-minded attitude of the committee members when he said that they voted also to eliminate the traditional opening-day ceremonies of the Legislature on February 9.