Ka‘ū News Briefs, Wednesday, June 23, 2021

Nevaeh Kaipo took first place among third graders in the third annual county Water Conservation Poster Contest open to all students islandwide from kindergarten through fifth grade. See more below. Photo from DWS

    The governor's “intent to veto" list features several controversial tax and spending bills, including HB58, which would have raised the conveyance tax while suspending multiple general excise tax exemptions, reports Grassroot Institute. The organization also points to HB862, as "a gut-and-replace mishmash that would have given counties the ability to impose a transient accommodations tax as well as defunding the Hawai’i Tourism Authority."    Institute President and CEO Keli'i Akina said, "While we would prefer to see all of this year's tax proposals on the veto list, it's a relief to find one of the worst tax bills of the 2021 session slated for a veto." He called HB58 "a Frankenbill stitched together from the remains of another big tax bill," and "one in a series of proposals that — while purportedly aimed at the rich — would have ended up costing all Hawai’i residents in the long run." Akina said, "As we repeatedly told the Legislature this year, this is the worst possible time to burden our residents and businesses with more taxes. When you're trying to rebuild a struggling economy, you need the government to step back and reduce the cost of living, not add to it."
    Akina said the veto of HB862 is more complicated. "On the one hand," he said, "the veto prevents the creation of a county-level transient accommodations tax, which is an unnecessary burden on the recovering tourism industry. On the other hand, the veto also puts an end to the effort to defund the Hawai’i Tourism Authority. I hope that the much-needed debate on taxpayer-funded tourism marketing continues in a future session."    Akina said he was cautiously optimistic about the intended vetoes of several budget and spending measures, which the governor explained were due to federal limitations on the use of COVID-19 funds and reflect the state's improved economic forecast.
    "Economic growth — not increased debt or higher taxes — is the best route to solving our state's budget problems," Akina said. "It appears that Gov. Ige understands this, and is tailoring his spending decisions to prevent the state from falling into a larger fiscal hole."
    On the whole, Akina said, "the governor's intent-to-veto list demonstrates a fiscally responsible approach to our state finances."
    Recalling Ige's statement earlier this year that a tax hike is the last thing Hawai’i's businesses and citizens need, Akina said the governor "deserves praise for stopping the worst tax hikes of the legislative session before they add to Hawai’i’s already-high tax burden."
    The Grassroot Institute of Hawai'i describes itself as "a nonpartisan, nonprofit research and educational institution devoted to promoting individual liberty, economic freedom and limited, accountable government. Its goal is to improve the quality of life in Hawai’i by lowering the cost of living and expanding opportunities for all."

Reese Makaimoku took first islandwide among fourth graders illustrating the  need to conserve water. Image from DWS

WINNING KEIKI ARTISTS FOR THE WATER CONSERVATION POSTER CONTEST have been announced. The Department of Water Supply, County of Hawai‘i, has selected the top artworks from nearly 150 entries. Public and private school students attending kindergarten through fifth grade were invited to compete in the free contest promoting the theme “Do Your Part, Be Water Smart.”

Meili O'Loughlin if fist among second graders in illustrating conservation of water. Photo from DWS

THE FUTURE OF AGRICULTURE IN HAWAI'I is the topic of a new University of Hawai'i Economic Research Organization study. It presents key facts about Hawai'i's agricultural economy and what they may imply about its prospects for revival. According to the Executive Summary, key findings by UHERO include:
     Total agricultural sales have declined with the exit of sugarcane and pineapple plantations, but size of the decline looks different depending upon whether prices are discounted by the Consumer Price Index or the Producer Price Index.
    Because wholesale agricultural prices have increased less than consumer prices, the difference indicates that the economic value of Hawai'i's agricultural production has declined much more than the state's physical production of agricultural goods.
    While Hawai'i has soils and climates that are ideal for many crops, its productivity growth has lagged other states and countries.

Tylee Rapozo is first among first graders in the Water Conservation Poster Contest. Photo from DWS

    A key factor in stagnating productivity is Hawai'i's unusually high labor costs and associated low labor productivity. High labor costs stem from lack of mechanization relative to California and other highly-productive areas, not because wages are higher. Lack of mechanization can be traced to the relatively small scale and unique geography of Hawai'i's agricultural land, which is comprised of smaller and more fragmented fields that can be rockier and more steeply sloped.
Agricultural production in Hawai'i is increasingly concentrated on smaller farms, a trend that departs from other parts of the country, and also one that likely contributes to the state's lower productivity growth. See the full report at https://www.hawaiicoffeeed.com/uploads/2/6/7/7/26772370/agriculturaleconomiclandscapeinhawaii.pdf