You’d think Honolulu suffered a financial calamity judging from the panic at City Hall after arbiters awarded unionized police officers pay raises totaling 16.8 percent over four years.
City leaders said they were stunned by the increases that Mayor Kirk Caldwell described as "far more than we anticipated."
"It is clear that the city administration and the Honolulu City Council will need to address revenue enhancements while looking for additional cost savings if we are going to meet our financial obligations," Caldwell said.
Council Budget Chairwoman Ann Kobayashi said finding money for the raises would be "challenging."
It’s hard to tell if they’re trying to balance the budget or win an Oscar for best dramatic performance by tax-happy politicians.
The city’s $2.16 billion budget for fiscal 2014 included $40 million for police pay raises on the mayor’s and Council’s belief that officers would get 4 percent a year — the sameamount won by the Hawaii Government Employees Association and United Public Workers.
The award of 4.2 percent was a bit more than expected, but do Caldwell and the Council expect us to believe that after absorbing 4 percent for the much larger HGEA and UPW, a 0.2 percent surprise for a smaller union creates a tax-raising emergency?
This isn’t about paying police, but about creating an excuse for more taxes to pay for big looming expenses like the $5.26 billion rail project and rebuilding Oahu’s substandard roads and sewers.
The mayor and Council majority can’t admit they need higher taxes for these things because they campaigned for office on assurances that money was in place to cover the costs without big new tax hits, now euphemistically called "revenue enhancements."
Anybody paying attention knew this wasn’t the case.
Property acquisition estimates for rail have jumped to more than $220 million and growing from $70 million, and construction surcharges on the delayed project have eaten deeply into its $1 billion contingency fund before any track has been laid.
We’ve barely begun a discussion of paying for rail operating costs that will nearly double the portion of the city budget devoted to public transportation to 19 percent from 10 percent.
Caldwell tried unsuccessfully to impose a 5 cent gasoline tax increase to pay for fixing roads, and there’s been little explanation of where the city will get the hundreds of millions for sewer upgrades it has promised the federal government.
After public workers took pay cuts and furloughs during the recession, it was well known that the raises now "stunning" city officials would be coming once the economy improved.
Caldwell walked through the door grubbing for "revenue enhancements" that got scant mention during his campaign, nowsaying we need honest talk about city finances.
Excellent idea, Mr. Mayor. You first.
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Reach David Shapiro at volcanicash@gmail.com or blog.volcanicash.net.
